Just-in-time: implications for the hospital industry

The Just-In-Time system is an operations technique that was developed in Japan and became a growing trend in U.S. industry. JIT applications are relatively new to the hospital industry. Entry into a JIT arrangement requires a good deal of forethought and planning prior to implementation. Hospitals, in order to profitably implement JIT, must commit to a limited number of suppliers, share "vital" information about their operations, and importantly, remove functions they are presently performing as the supplier provides additional services. Introducing JIT in hospital operations involves more than simple edicts from management. If implemented correctly, it has the ability to slash costs, increase productivity levels, utilization of equipments, reduce the need for certain indirect labor, such as material handlers and increase profits.