MG 423
July 19, 1999
     Just-in time is an integrated set of  activities designed to achieve  high-volume production using minimal inventories of raw materials, work in process, and finished goods (Chase). JIT’s basis is the elimination of waste whether it is from excess inventory, overproduction, excessive transportation, or defects. In JIT there is no room for surplus or safety stock.

     There are seven elements which address the elimination of waste; 1) focused factories networks, small specialized plants instead of large vertically integrated ones, 2) group technology, work centers which eliminate movement and queuing time between operations and have workers with flexible skills, 3 )quality at the source, simply do it right the first time,  4) JIT production, producing only what is needed when it is needed, 5) uniform plant loading, smoothing the production flow by reducing the productivity problems, 6) kanban production controls, implement signaling processes which will indicate when more product is needed in the system, 7) minimized setup times, reduce the time needed to change settings on machinery.

  JIT also needs to have Total Quality Control in order to operate correctly. By having good quality product to work with, the need for “just in case” inventory is eliminated. They are right the first time. JIT also requires a stable schedule over a length of time. This allows for a fixed plan that producer and suppliers can operate form.

     The business that I have chosen for my JIT example is LK Plastics. LK offers  3 hr. availability of product after ordering. This availability is on their dock and not delivered, but they do have eight plants covering the United States. This availability is for all 1600 items of flexible packaging that they manufacture. Custom items could also receive similar status with long term commitments. If one had a factory in any of their eight factory locations, one could completely eliminate inventory except for what was needed for immediate production. Having reliable shipping and one could do the same at any location throughout the US.

This page last updated July 16, 1999
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