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Benefits of JIT

1) Reduced Setup Time: Cutting setup time allows the company to reduce or eliminate inventory for "changeover" time. 

2) Flow of Goods from Warehouse to Shelves Improves: Small or individual piece lot sizes reduce delay inventories, which simplifies inventory flow and its management. 

3) Employees with Multiple Skills are Used More Efficiently: Having employees trained to work on different parts of the process allows companies to move workers where they are needed.

4) Production Scheduling and Work Hour Consistency Synchronized with Demand: If there is no demand for a product at the time, it is not made. This saves the company money, either by not having to pay workers overtime or by having them focus on other work or participate in training. 

5) Increased Emphasis on Supplier Relationships: A company without inventory does not want a supply system problem that creates a part shortage. This makes supplier relationships extremely important. 

6) Supplies come in at Regular Intervals Throughout Production Day: Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time. When parts move directly from the truck to the point of assembly, the need for storage facilities is reduced.

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