What happens to parts and labor in Just-in-time (JIT) manufacturing?

In Just-in-Time (JIT) manufacturing, parts and labor are managed in a way that aligns closely with actual production needs, minimizing waste and reducing inventory costs. The correct answer emphasizes a critical aspect of JIT: components and labor are acquired only as they are required for production.

This approach allows companies to maintain lean operations by reducing the amount of inventory on hand, which can often lead to excess that may become obsolete or incur additional carrying costs. By timing the procurement of both parts and labor closely with production schedules, companies that use JIT can efficiently meet demand without overcommitting resources.

The focus of JIT is on improving efficiency and responsiveness in manufacturing processes, which distinctly contrasts with other approaches where stockpiling materials or labor might occur. Thus, acquiring parts and labor only when needed is the hallmark of a successful JIT system.