Define: Just-In-Time

Business, Legal & Accounting Glossary

Definition: Just-In-Time



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Full Definition of Just-In-Time


Just-in-time is an inventory system where raw materials are delivered right before they are needed on the assembly line, and finished goods are manufactured just before they are shipped to customers. Just-in-time improves return on investment by substantially reducing overhead cost, limiting quality inspections, and eliminating obsolete inventory. Just-in-time does generate substantial risk, however: under just-in-time systems, production stops when parts aren’t delivered on schedule, and huge bottlenecks are created when product isn’t shipped on schedule. Thus successful just-in-time manufacturing requires both superior management and a highly disciplined workforce. Just-in-time is closely associated with methods introduced and refined by the Toyota Motor Company of Japan and copied by manufacturers throughout the world. In truth, however, just-in-time is simply one element of the comprehensive Toyota Production System, which attempts to eradicate waste of all kind.


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Just-In-Time. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/just-in-time/ (accessed: April 05, 2020).
American Psychological Association (APA):
Just-In-Time. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/just-in-time/

Definition Sources


Definitions for Just-In-Time are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 1st April, 2020