Associated with Japanese management techniques, just-in-time production (JIT) is a set of principles and practices based on the philosophy that firms should hold little or no inventory beyond that required for immediate production or distribution. That is, a manufacturer should receive raw materials or parts from its suppliers perhaps just hours before they will be used in production, and the firm's output should be shipped to its customers as soon after completion as possible—without holding onto a stock of either raw goods or finished products.

In practice, JIT has often been expressed as a holistic management system aimed at reducing waste, maximizing cost efficiency, and securing a competitive advantage. Thus, a number of additional conditions are considered necessary for the successful implementation of JIT. These include small lot sizes, short setup and changeover times, efficient and effective quality controls...