BZT Dictionary®

JIC

JIC (Just In Case) means good to have and is the opposite of JIT (Just In Time). The JIC philosophy means that you must build and hold inventories of products so as to be able to deliver IN CASE they are needed, and not WHEN and IF they are needed.

Jokingly one can say that JIC means "sloppy", or no management of the production or of the logistical flow, which in turn leads to large inventories and large commitments of capital. Frequently, too, the "wrong" product is in inventory when the customer places an order. But, more seriously, production and an inventory of spare parts is an example of what is embraced in the JIC philosophy.

Compare "JIT" och "KANBAN".

JIT

JIT (Just In Time) is a term for a planning philosophy which entails producing goods at the right point in time and in the right quantity, exactly when the customer wants to have them. At bottom, JIT is a Japanese production and planning philosophy. The JIT philosophy affects not only production and delivery of the final products, but also the entire logistical flow. All component parts in turn must be delivered JIT in the right quantity and at the point in time when they are needed.

The aim of the philosophy is to minimize all inventory buffers in the whole chain of logistics, and thereby minimize the commitment of capital in the business. JIT is used today not only in manufacturing industries but also in all businesses with large flows of goods.

JIT is often combined with KANBAN, which is a way of managing production.

Joint Venture

When two or more parties form a company (a shared-risk enterprise) in order to develop a project, provide combined resources and share risk.

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