Costs
1. Handling a larger number of smaller batches of WIP2. The higher probability of shutdowns due to smaller safety stock at each work station3. The possibility that setup costs cannot be reduced enough to offset the larger number of setups performed.
JIT & TQM
JIT efforts try to eliminate waste in all forms, and thus is an important part of many total quality management (TQM) efforts.
JIT & Velocity
There is a direct relationship between the size of WIP and the speed of production.
Just-In-Time (JIT)
Is a philosophy centered on the reduction of costs through elimination of inventory.