A manufacturing and inventory management philosophy that seeks to effectively manage resources and improve organizational effectiveness by identifying and eliminating sources of waste (anything that does not add to the customer's perception of value). Among other areas, it focuses on the reduction of lead times, small lot sizes, flexible production facilities and workforces, elimination of quality defects, and the reduction of inventory levels to as close to zero as possible. Inventory is seen in the JIT philosophy as not necessarily an asset, but as an unnecessary cost and potential liability that lengthens lead times, increases the chance for obsolescence and hides inefficient processes and systems. It also emphasizes group and partner involvement in design, manufacturing and logistics.