Just in Time Manufacturing Buy it if we need it, make it if it is sold. Stock arrives when needed in the production process. Goods are made ready for delivery to customers.

JIT Building Blocks Product design Incentive Systems Personnel/ Worker skills Quality control Relationships with suppliers Understanding of production process

Waste from overproduction Waste from holding WIP Transportation waste Stock holding waste Processing waste Waste from product defects Waste from not using workers skills Types of Waste without JIT (JIC)

Reduce costs of stock hold Minimize Work In Progress Minimize buffer stocks Smoother production flow Increased productivity levels Worker participation in problem solving Good customer relationships Benefits of JIT

Reduced space requirements Increased product quality Reduced lead times Greater flexibility in product mix Benefits of JIT

What Must You Have for JIT? Management understanding of production process– walk the line Management understanding of production process– walk the line Effective relationship with customers- efficient EPOS ordering systems Effective relationship with customers- efficient EPOS ordering systems Relationship with suppliers - frequent deliveries, effective understanding of ordering and supply systems Relationship with suppliers - frequent deliveries, effective understanding of ordering and supply systems Product design -standardization, fewer parts Product design -standardization, fewer parts Incentive systems for workers -skills, reward for improved trends in quality and input of ideas Incentive systems for workers -skills, reward for improved trends in quality and input of ideas

Management may not be committed Lack of understanding of production process Workers/management may not be cooperative Suppliers may resist Long supply chains Cost of implementing systems Lack of skills / cost of training Obstacles to Conversion to JIT