When implemented successfully, JIS improves a company's return on assets (ROA), without loss in flexibility, quality or overall efficiency.
The process concept of JIT sees buffers at the production line as waste in capital bound.
However, the effect is worse when the sequence does not get correctly scheduled upwards or when the transport line gets congested.
The first step for the organization is to implement JIT processes to synchronize all manufacturing and material departments inside the plant and to collaborate with suppliers, customers, and sub-contractors to reduce inventory buffers to within a few hours.
This process typically uncovers deep manufacturing and logistic issues that are not easy to overcome (see JIT Implementation for more details).
The manufacturing company can only benefit from sequencing items once these problems have been resolved successfully and components are delivered Just In Time.
In many cases the turn-around time from broadcast to final assembly is less than 2 hours, with some components required in 30 minutes or less.
The main reason is that some manufacturing processes require re-work frequently so that a scheduled sequence becomes irrelevant.