Just-in-time (JIT)
In this 8-minute lesson, you'll learn what just-in-time manufacturing is and why it matters for your Performance Management studies. JIT is a production philosophy built on the principle that inventory is waste—the goal is to hold zero stock and produce items only when customer demand requires them.
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In this lesson
- 0:00 Just in time: Core principles explained
- 1:03 Traditional versus modern manufacturing approaches
- 2:01 Key implementation techniques for JIT
- 4:05 Performance management implications of JIT
- 6:03 Costing systems and information requirements
- 7:40 Non-financial performance indicators for JIT
About this lesson
This approach contrasts sharply with traditional mass production methods and is essential knowledge for PM, APM, and SBL papers. The video walks you through the core techniques that make JIT work: minimising setup times to enable smaller production runs, using Kanban signalling systems to control workflow, organising factory layout around products rather than functions, implementing total productive maintenance to prevent breakdowns, and building close supplier relationships based on reliability rather than price. You'll see how each technique reduces waste and increases flexibility—allowing businesses to respond quickly to changing customer needs. Critically, you'll explore how JIT transforms your performance management approach. Traditional manufacturing focuses on unit cost as a key metric, but JIT shifts emphasis entirely. Instead, you'll measure setup times, production speed, supplier reliability, quality, and non-financial indicators like defect rates and cycle times. The video shows you how to structure an exam answer by identifying five key JIT principles and suggesting appropriate performance measures for each—a practical framework you can apply directly to case study and written questions. By the end, you'll understand not just what JIT is, but how to explain its ripple effects across costing systems, information requirements, management culture, and strategic decision-making—exactly what examiners expect.
Duration: 9m
Transcript
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