JIT Vs JIC Just in time Vs Just in case

Objectives To be able to compare JIT with JIC To be able to compare JIT with JIC

JIC??? Stock is held just in case we need it (We have a buffer stock) Stock is held just in case we need it (We have a buffer stock) 10 minutes to research JIC: What is it? What is it? Advantages? Advantages? Disadvantages? Disadvantages?

Costs/problems of JIC

Advantages of JIC Can meet sudden changes in D Can meet sudden changes in D Can speed up production if necessary Can speed up production if necessary Economies of Scale Economies of Scale Little downtime Little downtime Disadvantages of JIC Really these are the costs of stockholding Really these are the costs of stockholding

Just in time Exactly what it says on the tin! Exactly what it says on the tin! 10 minutes to define, suggest advantages and disadvantages 10 minutes to define, suggest advantages and disadvantages

Recap…WHY USE JIT? Stock holding costs down Stock holding costs down Op costs down Op costs down Cashflow up Cashflow up Motivation up Motivation up How so? Waste down Waste down Relationship with suppliers up (This becomes vital) Relationship with suppliers up (This becomes vital)

However… Very reliant on external suppliers Very reliant on external suppliers Low stock levels means no room for errors Low stock levels means no room for errors Increases in D can cause probs Increases in D can cause probs Lost EofS Lost EofS Admin costs up Admin costs up Needs sophisticated computer technology Needs sophisticated computer technology Needs to be part of the culture Needs to be part of the culture