In the early 2000s, Crafters of Cebu, Inc.

(CCI) organized the work in the production by each

manufacturing process and forced those in charge of each process to maximize their output even if it
exceeds customer demand. As a result, it bloated its inventories, resulting to high inventory carrying and
maintenance costs in the past.
During 2010, CCI started to employ just in time (JIT) production to significantly reduce its
inventory carrying and maintenance costs and redirect its scarce resources to make improvements in the
production layout and to the entire manufacturing process. It also started to organize its resources such as
people and machines around the flow of the manufacturing business processes and its products are only
manufactured in response to customer orders and completed just in time to be shipped to its customers.
Because JIT production only allows CCIs production in response to customer orders, the number
of units produced tends to equal the number of units sold, thereby resulting in minimal inventory. CCI also
recognized that JIT results in fewer defects, less wasted effort, and quicker customer response times, which
are important given that majority of its customers are from abroad.