9609 · 4.2.2
Just in Time (JIT) flashcards
Revision flashcards for Cambridge 9609 Just in Time (JIT) (syllabus 4.2.2). Flip, recall, then mark a real past-paper question.
Card
JIT definition?
Inventory system where materials arrive just when needed for production.
Card
Main benefit?
Reduced holding costs and working capital tied up in stock.
Card
Toyota link?
Pioneer of JIT + kaizen; classic case reference.
Card
Prerequisites?
Reliable suppliers, quality control, flexible workforce, good IT.
Card
Main risk?
Supply disruption stops production immediately — no buffer.
Card
vs buffer stock?
JIT minimises buffer; traditional holds safety stock (4.2.1).
Card
Link to lean?
JIT is core to lean production (9.3.4).
Card
Unsuitable when?
Unreliable suppliers, volatile demand, long lead times from abroad.
Card
What is the core principle of a 'pull' system in JIT?
A 'pull' system means production is triggered by actual customer orders, not by forecasts. Goods are 'pulled' through the production process by demand, which minimises overproduction and waste.
Card
Name three essential prerequisites for successful JIT implementation.
1. Highly reliable and flexible suppliers. 2. A multi-skilled and adaptable workforce. 3. A culture of Total Quality Management (TQM) or 'zero defects'.
Card
What is a major financial benefit of JIT, apart from lower storage costs?
Improved cash flow and liquidity. Less money is tied up as working capital in the form of inventory (raw materials, work-in-progress, finished goods), freeing up cash for other business needs.
Card
What is the main risk associated with the lack of buffer stocks in a JIT system?
Vulnerability to supply chain disruptions. Any delay from a supplier (e.g., due to transport issues, strikes, or quality problems) can halt the entire production line, leading to lost sales and a damaged reputation.
Card
How does JIT impact a firm's relationship with its suppliers?
It necessitates a very close, collaborative partnership. Suppliers become integral to the production process, requiring excellent communication, mutual trust, and a shared commitment to quality and punctuality.