Appropriately selected production system is a success key to companies. Just in Time System is an alternative way for the company to reduce or eliminate inefficiency in the production process .Research aims to understand whether the application of Just in Time System to the Ketchup Company “KUDA” Tulungagung can increase the efficiency of production cost.Research type is descriptive with case study approach to the Ketchup Company “KUDA” Tulungagung. Data analysis involves steps among other analyzing the achievement of facility and labor.Based on result of research and analysis, it is concluded that the application of Just in Time System to the Ketchup Company “KUDA” Tulungagung can indeed increase the efficiency of production cost for sweet ketchup. The productivity is increased to 20.7149 %, the production timing is saved by 17.0824 %, and the direct labor cost is reduced to 17.0825 %.Therefore, it is suggested that the production structure must be managed in effective and efficient manners to bring up consumer satisfaction in terms of quality, cost and the delivery of the product. Just in Time System is a good alternative to achieve this goal although it may take longer time to make it real.