The current study aimed to recognize the effect of a just-in-time production system (JIT) on reducing production costs, especially in terms of serious competition, rapid technological development, and continuous changes in the business environment, which leads to an increase in paying attention to applying JIT on productive organizations. The most important findings of the study are that applying the JIT production system leads to reducing all types of inventory, which leads to improving the organization’s performance. Also, its application leads to the removal or reduction of activities that do not add value to the product, which is reflected in the reduction of direct costs in the organization. The study recommended the necessity of applying the JIT system by the productive organizations and becoming acquainted with the successful experiences of international organizations that adopt this system, with the need to alert production officials in organizations to organize the productive operations sites in a way that reduces production time, in addition to providing sufficient flexibility to reduce the time required for the production process and reduce production cycle.
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