JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste. Organizations wanting to use the JIT approach to manufacturing must have several building blocks in place. The building blocks include: company‐wide commitment, proper materials at the right time, supplier relationships, quality, and personnel. The JIT system runs smoothly with no peaks or valleys. The typical inventory system, on the other hand, is fraught with peaks and valleys that represent costs to the organization in the form of inventory holding costs, back order and stock‐out costs, overtime and idle time labor costs, and waste of materials and space.