Just in time (JIT) is one of important components of the Toyota production system. JIT is a production technology system that promotes economic efficiency, with the central principle of produce appropriately what is necessary, just as much as needed, when needed. The main goal of JIT is to keep the stock at the necessary minimum during the production process for a complete balance between orders and production. Generally, there are various processes between receiving orders and shipment of products, resulting in prolonged lead time and opportunity loss for general mass-produced items. JIT can be also understood as an inventory strategy for improving the return on investment of a business by reducing in-process inventory and its associated costs.
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See also: Toyota production system