The Just-in-Time (JIT) method is a management approach that has revolutionised global industry. Extending far beyond its roots in the automotive sector, JIT has found application in diverse business sectors, from HR to healthcare, adapting to the changing business landscape.

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What is the Just in Time method?

Just-in-Time (JIT) is a management strategy that involves delivering materials, components, and products precisely when they are needed in the production or sales process. The main goal of JIT is to eliminate excessive inventory, reduce storage costs, and increase operational efficiency. This system reduces waste, shortens production cycles, and optimises workflow.

The JIT system relies on delivering components exactly when they are needed in the production process – no earlier, no later. In practice, this means:

Synchronising deliveries with the production schedule – materials are delivered according to a precise production schedule based on actual customer orders, not forecasts.
Kanban signal system – using visual signals (cards, containers, or electronic signals) to trigger deliveries only when the previous batch has been consumed.
Frequent, small deliveries – instead of infrequent, large deliveries, materials are delivered frequently in small quantities, sometimes several times a day.
Cross-docking – a technique where materials are transferred directly from the delivery vehicle to the production area, eliminating the need for warehousing.

In contrast to the traditional approach of holding large inventories “just in case,” the principles of the Just in Time method aim to minimise inventory, treating it as waste. Deliveries are coordinated with suppliers, who often need to locate their facilities close to the manufacturer to ensure fast and reliable deliveries.

Origin of the JIT method

The Just-in-Time method originated in the Japanese automotive industry, specifically from the Toyota Production System, developed in the 1950s and 60s by Taiichi Ohno. It was initially created in response to logistical challenges and the need to optimise inventory in car manufacturing. Toyota aimed to eliminate waste (muda) in every aspect of its operations, and JIT became a cornerstone of this approach.

Production process optimisation in Just in Time

The Just-in-Time system uses various tools and methods, including:

Cellular manufacturing – machines and workstations are grouped into cells that can produce complete products or components.
U-shaped layouts – a preferred production layout enabling operators to move easily between stations and supervise the entire process.
Takt time – the production pace is adjusted to the rate of customer orders, determining exactly how long it should take to produce one unit.
Pull system – production is initiated by customer demand, which “pulls” materials through the production process (in contrast to a push system, where production is based on demand forecasts).
One-piece flow – products move individually through successive production stages, rather than in batches, which speeds up the identification of quality problems.
Bottleneck elimination – systematic process analysis to find and improve operations that limit throughput.
Value Stream Mapping (VSM) – mapping the value stream to identify and eliminate non-value-adding activities.
Poka-Yoke – error-proofing mechanisms that eliminate the need for post-fact quality control.
Multifunctional employees – cross-training enables employees to perform various operations, increasing production flexibility (upskilling).

Examples of companies using Just-in-Time

McDonald’s – prepares meals to order, maintaining minimal stocks of fresh ingredients.

McDonald’s revolutionised its business model by implementing JIT in its meal preparation process:

Abandoned the traditional model of pre-preparing hamburgers in favour of preparing products only after an order is placed.
Invested in advanced food preparation technology that enables hamburgers to be prepared in just 90 seconds from order placement.
Implemented an IT system that automatically manages the production process, showing employees exactly what to prepare and when.

The results are impressive. Implementing JIT at McDonald’s led to a reduction in customer waiting times from 11 minutes to just 1.5 minutes per order, a significant decrease in food waste, and improved product quality.

Dell – assembles computers to specific customer orders, minimising component storage costs.

Dell revolutionised computer manufacturing by implementing a pioneering “push-pull” model:

Computers are assembled only after a customer places an order (the “build-to-order” model).
Collaboration with suppliers changed – the company reduced the number of suppliers from over 100 to just 24 and requires them to establish logistics centres near Dell factories.
Introduced an internal “Value Chain” platform, giving suppliers visibility into inventory and demand forecasts.
Component inventory is maintained at a level of just 2 hours of production, whereas the industry standard was 10-15 days.

Thanks to these practices, Dell shortened its production cycle by 10-20%, increased production efficiency by 20%, and improved product quality by 34%. A key aspect of Dell's success is also the positive impact on cash flow – customers pay upon order, and Dell benefits from a 45-day credit period from suppliers.

Zara – produces clothing in small batches, quickly reacting to trends and replenishing store assortments.

Zara built its business model around JIT principles, adapting them to the specifics of the fashion industry:

Transitioned from a traditional seasonal model to a “fast fashion” model with new designs introduced every two weeks.
Vertically integrated its supply chain – from design, through production, to distribution.
Maintains 85% of factory production capacity in standby mode, allowing for immediate reaction to demand changes.
Produces 50% of its assortment in local factories in Spain, Portugal, Morocco, and Turkey.
Delivers to stores twice a week, always on specific days and times.

The results of this strategy are exceptional: a reduction in time to market for new products from 6 months to 3 weeks, an inventory turnover rate of 10-20 times a year (industry average is 3-4), selling 85% of products at full price (industry average is 60%), and only 10% unsold inventory annually (industry average is 17-20%).

Apple – manages its supply chain to minimise inventory and quickly introduce new products.

Apple, under Tim Cook's leadership, revolutionised supply chain management:

Reduced the number of suppliers from over 100 to 24 key partners.
Halved the number of warehouses and established close relationships with contract manufacturers.
Strategically reserves air freight capacity to ensure availability during peak demand periods.
Maintains minimal inventory levels – inventory turnover every 5 days, compared to an industry average of several weeks.

Tim Cook, known for his philosophy that “inventory is fundamentally evil” and comparing it to dairy products that spoil quickly, led to a twofold increase in Apple's revenue and profits and a rise in the company's market value from 348 billion USD to 1.9 trillion USD.

Airbus – delivers components for aircraft assembly exactly on time, limiting storage space. Airbus applied JIT to the complex aircraft production process:

Implemented the Just-In-Time Specification (JITS) concept, allowing customers to specify options with appropriate lead times.
Adopted a modular approach to aircraft production, where main sections are assembled separately before final integration.
Manages a complex logistics chain where parts come from points thousands of kilometres away.
Adapted JIT to the long production cycles characteristic of the aerospace industry.

By implementing lean manufacturing principles, Airbus improved production time by 60%, increased available production space by 50%, and improved resource efficiency by 30-70%.

Just in Time implementation beyond manufacturing

Although this management method originates from the production line, it can also be applied in many other business areas, not just logistics or manufacturing, but wherever there is a need to react quickly to changing customer needs.

Just in Time system in healthcare:

Titan Healthcare – implemented a JIT system for pharmacy inventory management, which allowed for a reduction in pharmaceutical inventory costs and an increase in patient service levels.
Mercy Hospital in Chicago – uses medical supply deliveries directly to hospital facilities almost daily, and in some cases, directly to the point of use, e.g., to nursing stations.

In healthcare, Just in Time requires modifications to account for the unpredictability of demand for specific materials and medicines, often necessitating a certain “safety buffer” of critical product inventory.

Just in Time system in financial services

The financial sector has adapted JIT to manage financial flows:

Marqeta – implemented a Just-in-Time Funding system for payment cards, delivering funds to the card precisely when a transaction is made, which improves cash flow for businesses and reduces fraud risk.
Banks – apply a JIT approach in lending processes, organising credit teams into small, autonomous units responsible for the entire process and implementing real-time credit assessment.

In this case, JIT was applied to financial flows instead of physical goods, where the “inventory” is the funds available on payment cards.

The Just In Time concept in onboarding – an example

How to effectively apply the “Just in Time” principle in the new employee onboarding process?

The “Just in Time” principle in onboarding involves providing new employees with exactly the information they need at a specific moment in their professional journey within the company, instead of overwhelming them with all possible materials at once.

ServiceNow implemented a system that automates new employee induction by providing necessary resources and information exactly when needed, shortening the employee onboarding time from three days to a few hours.

Why is the “Just in Time” approach effective in onboarding?

Research on knowledge retention clearly shows that people best remember information when:

They can immediately apply it in practice
They have context that helps them understand the meaning of the information
They receive knowledge in manageable doses that don't overwhelm them

According to Adult Learning Theory research, adults remember only 10% of what they read, but as much as 75% of what they practice. Additionally, Ebbinghaus's forgetting curve shows that after 24 hours, a person forgets about 70% of information if it is not reinforced.

You can utilise the principles of the Just in Time method in the tomHRM employee onboarding application, which allows you to divide the entire process into convenient steps of various types!

Implementing Just in Time in onboarding – practical tips:

Organising knowledge by urgency and importance.

Categorise all information (example plan):

Critical (first 1-3 days):

Safety rules and emergency procedures
Basic operation of systems essential for daily work
Key company policies (e.g., confidentiality)
Logistical information (where is the bathroom, kitchen, conference room)

Important (first week):

Detailed information about team processes
Fuller knowledge of products/services
Company structure and hierarchy

Useful (first month):

Company history
Long-term strategies
Broader understanding of other departments and their collaboration

Advanced (after three months):

Advanced specialised training
Detailed industry knowledge
Career development opportunities

Organising knowledge into real tasks

Connect knowledge with specific practical and useful tasks.

Identify the new employee's initial tasks.
Determine what knowledge is necessary to complete each task.
Deliver precisely that knowledge just before work on the task is scheduled to begin.

Example:

Task: prepare the first client presentation.
Required knowledge: company template, branding guidelines, client basics.
Timing: provide this information 1-2 days before the planned start of work on the presentation.

Micro-learning instead of training marathons

Instead of all-day training sessions that overwhelm and lead to rapid forgetting:

Introduce 15-30 minute micro-learning sessions.
Combine them with specific tasks to be completed immediately after the training session.
Distribute them evenly over time (e.g., every morning).

Example schedule:

9:00-9:20: Introduction to CRM system (key functions)
9:30-10:30: Practical exercise – entering data for 5 clients
14:00-14:20: Advanced CRM functions
14:30-15:30: Practical exercise – creating reports

You can plan micro-training sessions in the tomHRM training management application and manage them from training paths or the onboarding process.

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Just in Time