How Just in Time manufacturing helps new businesses

It seems that nowadays, everyone wants to be their own boss.  Entrepreneurship has become a whole lot more popular and few people really want to have someone to respond to, they want to be the head honcho.  Therefore, many choose to start up a business and search for financial independence.  The first thing they need is a great idea.  Then comes gathering capital that will make the idea come to life.  Some choose a bank loan, others withdraw all their savings, and others looks towards crowdfunding to get their business off the ground.  Once enough capital has been collected, it’s time to manufacture the product.  There are many manufacturing methods out there but someone who is starting a business must be wise about which one they choose.  One of the best ones is by far Just in Time manufacturing.  JIT manufacturing has helped four of the world’s most important companies grow to where they are today. David Kiger is here with some reasons that will help explain why Just in Time manufacturing is ideal for new businesses.

1.  Use up raw material efficiently

Another huge part of having success is how a company uses the raw materials it needs to make a product.  Some raw materials may not come cheap and others may need to be imported.  Once a company has them in their possession, they must be used as efficiently as possible.  Along with Kaizen, Just in Time manufacturing pays close attention to how raw materials are spent in order to avoid generating unnecessary waste along the production line.  Being able to use raw materials efficiently is one of the staples of Just in Time manufacturing.  Therefore, it is a valuable resource for any company which is starting out and looking to make sure production runs as smoothly as possible.

2. Helps reduces operating costs

Employees, utilities, maintenance, and suppliers are four things that a company needs to account for when it comes to running a business.  Each one represents substantial investments in time and money.  Just in Time ensures that a company has only the necessary elements.  In other words, it helps companies understand how many employees are required, how much raw material is needed to not generate waste, and how much electricity or production time is required to get a product out.

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Image courtesy of Unsplash at

3. Use financial resources intelligently

New companies do not have the amount of financial resources or credit history that the big boys have.  This means that they have to be very careful regarding how they spend capital.  Established companies can afford to spend a little more money on manufacturing some extra stock.  Startups can’t afford this luxury.  They must ensure every dollar is well spent.  Hence, Just in Time manufacturing allows them to build only what they are going to sell, usually on a per order basis, until they can predict when they need to produce a certain amount of stock for different moments of the year.  Just in Time manufacturing helps companies stretch their capital to the maximum in order to make sure they are not wasting money they can’t afford to.

4. Create the potential for exclusivity

Just in Time production usually, works on a per-order basis.  This means that companies only start production once they receive an order.  If a company offers a top of the line product, Just in Time production could help it become an exclusive brand.  Exclusivity is something that consumers are always striving to obtain and they are always looking for a product that will give it to them.  Limited quantities of a product mean that not everyone will have access to it.  That in turn, can create demand.  The more demand you can create for a product the higher a company can charge for it.  Just as long as the company doesn’t go overboard with how much they want customers to pay, Just in Time manufacturing could be a valuable ally to gaining a name for the company.

Just in Time manufacturing is gaining more popularity and relevance every day. Companies are starting to understand that it can help them save a lot of money and resources while increasing the company’s bottom line.  They are always looking for strategies to help them cut down on costs without having to sacrifice quality or customer satisfaction.  Therefore, startups would be wise to select Just in Time manufacturing as their preferred strategy.  It will definitely help them use financial and material resources in a way that will allow them to stay afloat, become competitive, and in the long run, be successful.

If you would like to know more about other manufacturing methods, such as Kaizen or Six-Sigma keep coming back to the blog to get the latest insight.  Additionally, you can gain more understanding of how supply chain management works and what is currently going on in the industry.  

* Featured Image courtesy of David Bartus at


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