Logistics Management

The efficiency of Just in Time(JIT) technique has been proved time and again and with increasing competition more and more organizations are looking forward to using the concept. For the uninitiated, JIT is an innovative inventory technique that aims to improve the efficiency of the inventory management process by minimising the in-process inventory and the related carrying costs. It essentially is based on a concept of signals which is used to notify the production process to start with the next unit of work. Despite the multitude of benefits that JIT offers, many small and mid sized firms lack the technical know-how and insight to properly a JIT inventory system and hence are unable take advantage of the technique. However this problem can be addressed if one uses a predefined balanced scorecard for the JIT process.

A JIT scorecard comes with well defined metrics which a mid or small organization can use to tailor it own processes and set up an efficient performance tracking mechanism. It also helps these organizations to reduce the learning curve that is associated with implementing a JIT system in an organization by giving them a starting point of reference for most expected performance standards.