JUST IN TIME

(JIT)
PURCHASING
Lavi Cornel Subang

Just In Time (JIT)

An approach
that is
utilized to
eliminate
waste and
achieve
manufacturin
g excellence

Just In Time (JIT)

Often referred to as lean production

system because it uses less resources
compared to the regular production
system.

Just In Time (JIT)

Uniform production
(Heijunka)
Quick set times
Small lot sizes
Short lead times
Preventive
maintenance
Multifaceted
workforce
Supplier
development

JIT Purchasing

You purchase goods so that theyre

delivered just as theyre needed to meet
customer demand.

Importance of Lean Purchasing

The role of purchasing has become

increasingly important over the years due
to the material cost portion of a product or
a company

JIT Purchasing

It tries to focus on:

Elimination

of waste
Supplier participation
Total quality control

JIT Purchasing

Elimination of Waste
Reduced

order quantity and Frequent delivery

schedules

JIT Purchasing

Supplier participation

Reduced Lead Times

JIT Purchasing

Total quality control

Japanese manufacturers attempt to reduce

incoming material inspection as much as
possible. In order to eliminate associated
receiving inspection costs, a very high
emphasis is placed on the quality of in
coming materials under the JIT system.

JIT Purchasing

In addition..
JIT

purchasing is characterized by less

carrying cost and ordering cost

Benefits

Reduced inventory levels

Benefits

Improved lead time and

scheduling

Benefits

Improved quality and customer

satisfaction

Benefits

Reduced costs and cooperation

with suppliers

Risks

Demand Fluctuation and Supplier

preparedness

Risks

Employee and Management

Preparedness

Risks

Low product quality

Risks

Distress in the communication

JIT Purchasing in the

Philippines
Multiflex RNC Phil, Inc (URATEX)
Autoliv Cebu Safety Manufacturing, Inc.
Dedon Manufacturing, Inc

References

http://www.slideshare.net/myzamri01/justintime-lean-purchasing
http://www.investopedia.com/terms/j/jit.asp
http://www.dummies.com/how-to/content/costaccounting-justintime-purchasing-risks-andbe.html
http://www.mindtools.com/pages/article/newST
R_78.htm
http://www.nevilleclarke.com/content.php?id=7
7&cid=17

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