Oregon Construction Contractors (CCB) Practice Test

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What does "Just In Time" (JIT) refer to in the context of construction?

A strategy to increase project completion speed
A method for managing material and inventory costs
A construction scheduling technique
A procurement approach for materials

The correct answer is: A method for managing material and inventory costs

The term "Just In Time" (JIT) in the context of construction primarily refers to a method for managing material and inventory costs. JIT emphasizes the delivery of materials and components to the construction site precisely when needed, rather than before or after. This approach reduces the need for on-site inventory, minimizes storage costs, and lowers the risk of material wastage or damage. Implementing JIT allows contractors to optimize their cash flow, as funds do not get tied up in excess inventory. It also enhances the efficiency of the construction process by ensuring that resources are available for use exactly when they are required, thereby streamlining operations. While other choices mention scheduling techniques or procurement methods, JIT’s core focus is primarily on managing inventory and cost implications related to material delivery, making it a strategic approach to inventory management rather than strictly a construction schedule or procurement strategy.