One example of JIT in the auto parts assembly process is to see to type sub-assembly is required from the previous process to achieve product line at the time required and the amount needed. If JIT is achieved throughout the company, the stocks that do not have the factory will be removed altogether. So that no material or warehouse inventory needed. Warehouse inventory costs will be reduced and capital turnover ratio will increase.
However, it is very difficult to achieve JIT in all processes for a product like a car when used arrangement of central planning (push system), which determines the production schedule and distribute to all processes simultaneously
Because of it, the Toyota system, we need to see the production flow in reverse, in other words, people of a certain process to go into the process earlier to take the necessary units in the required amount in the required amount of time required. Previous process was only manufacture enough units to replace units that have been taken. This system is called a pull system.
Customers generally do not want to know about how the production process is the most important is how the item can be shipped on schedule. There must be no delay