IJREAS VOLUME 2, ISSUE 4 (April 2012) (ISSN 2249-3905 International Journal of Research in Engineering & Applied Sciences http://www.euroasiapub.org 45 Critical Analysis of Implementation of Just-In-Time in an Industry S. K. Jarial Associate Professor Mechanical Engineering Department Deenbandhu Chhotu Ram University of Science & Technology, Murthal, India Abstract The purpose of this work is to check the status of implementation of Just-In-Time (JIT) inventory management technique in an Indian industry. And also investigate whether Just-In-Time (JIT) inventory management technique is a worthwhile approach or not to manage inventories. Some experts in the field maintain that the additional transportation costs derived from using JIT and its costs due to frequent transportation is more than offset by the reduction in inventory levels. In this study a simulation is developed using the cost structure of some parts of an automobile in an automobile company. This work results indicate that despite all the advantages of using JIT, JIT is not always the lowest cost technique. Keywords: JUST-IN-TIME, Transportation Cost, Holding Cost, Ordering Cost, Demand Break-even- point, EOQ (Economic order quantity), Inventory.