Just-in-time production in West Germany

Abstract

The introduction of Just-In-time principles in West German enterprises is aiming at a close alignment of production and market requirements. This is realized by greater flexibility in connection to shorter lead times and process rationalization. Optimizing the relationship between liquid and fixed assets is critical, requiring a high utilization of capital intensive production facilities as well as a high turnover of liquid assets. Short response times of production together with reduced purchasing lead times result in competitive advantages.