Dictionary of Procurement Terms

A quality concept first perfected by the Japanese. Its basic tenet is the elimination of waste in the form of overproduction, unnecessary motion, transportation, excessive inventory, and production and labor time. The term has evolved to refer to when previously held maintenance, repair, and operating (MRO) inventory items are outsourced to JIT suppliers, who may provide next-day delivery. JIT generates best value through supplier partnerships that generate savings through reduced labor, inventory, production, and processing costs. (Business 2002)