• Parts and raw materials should be purchased as near as possible to the time they are needed, using small frequent deliveries against bulk contracts.
• Inventory levels are therefore minimized.
(2) Close Relationship with Suppliers
• In a JIT environment, the responsibility for the quality of goods lies with the supplier.
• A long-term commitment between supplier and customer should therefore be established.
• If an organization has confidence that suppliers will deliver material of 100% quality, on time, so that there will be no rejects, returns and hence no consequent production delays, usage of materials can be matched with delivery of materials and inventories can be kept at near zero levels.
(3) Uniform Loading
• All parts of the production process should be operated at a speed which matches the rate at which the final product is demanded by the customer.
• Production runs will therefore be shorter and there will be smaller inventories of finished goods because output is being matched more closely to demand (and so usage costs will be reduced).
(4) Set-up Time Reduction
• Machinery set-ups are non-value-added activities which should be reduced or even eliminated.
(5) Machine Cells
• Machines or workers should be grouped by product or component instead of by the type of work performed.
• Production can flow from machine to machine without having to wait for the next stage of processing or returning to the stores.
• Lead time and work in progress are thus reduced.
(6) Quality
• Production management should seek to eliminate scrap and defective units during production, and to avoid the need for reworking of units since this stops the flow of production and leads to late deliveries to customers.
• Product quality and production quality are important “drivers” in a JIT system.
(7) Pull system (Kanban)
• Products/components are only produced when needed by the next process.
• Nothing is produced in anticipation of need, to then remain in inventory, consuming resources.
(8) Preventive Maintenance
• Production systems must be reliable and prompt, without unforeseen delays and breakdowns.
(9) Employee Involvement
Workers within each machine cell should be trained to operate each machine within that cell and to be able to perform routine preventive maintenance on the cell machines (ie to be multi skilled and flexible).
(source: BPP Learning Media)
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