Figure 1 illustrates the relationship between the JIT manufacturing process and
a typical inventory system. 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.
The beauty of the JIT manufacturing process is that the entire operation is
continually improved upon and is not static but rather dynamic in nature. The
process is not thought of as a short-term investment but rather a long-term
philosophy of company management that yields many benefits. As previously
discussed, several items are key “building blocks” to the JIT manufacturing
process. These blocks include the commitment of all employees in the
organization, having the proper materials at the right time, supplier
Figure 1 illustrates the relationship between the JIT manufacturing process anda typical inventory system. The JIT system runs smoothly with no peaks orvalleys. The typical inventory system, on the other hand, is fraught with peaksand valleys that represent costs to the organization in the form of inventoryholding costs, back order and stock-out costs, overtime and idle time laborcosts, and waste of materials and space.The beauty of the JIT manufacturing process is that the entire operation iscontinually improved upon and is not static but rather dynamic in nature. Theprocess is not thought of as a short-term investment but rather a long-termphilosophy of company management that yields many benefits. As previouslydiscussed, several items are key “building blocks” to the JIT manufacturingprocess. These blocks include the commitment of all employees in theorganization, having the proper materials at the right time, supplier
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