The impact of implementing the Just-in-Time (JIT) production system on reducing the costs of Libyan industrial companies

Abstract

    This research aims to assess the availability of the components necessary for implementing the Just-in-Time (JIT) production system in industrial companies located in Benghazi. The objective is to identify the factors that contribute to increasing profits and reducing production costs for these companies. The central question of the study can be formulated as follows: To what extent are the components required for applying the Just-in-Time (JIT) production system available in Libyan industrial companies, specifically in relation to cost reduction? An inductive and deductive approach was utilized in this research. The findings indicate that the application of the Just-in-Time production system effectively reduces inventory across all categories, allowing companies to convert investments into areas that enhance cost performance. Furthermore, implementing JIT helps eliminate or reduce non-value-adding activities, which subsequently lowers direct costs within the company. The research recommends that production officials in these companies be encouraged to maintain continuous production without interruptions, enhance the efficiency of operational stages according to predetermined timelines for each phase, and ensure timely preparation of production tools to complete manufacturing activities as scheduled