Just in time pp
- 2. STOCK CONTROL TRADITIONALLY COMPANIES HOLD STOCKS OF: RAW MATERIALS WORK IN PROGRESS and FINISHED GOODS
- 3. STOCK CONTROL TRADITIONAL METHOD JUST-IN-CASE MODERN METHOD JUST- IN-TIME
- 4. STOCK CONTROL JUST-IN-CASE You carry a quantity of stock of: raw materials finished goods JUST- IN-TIME Raw materials are not purchased until required Finished goods are not produced until you have a firm order
- 5. STOCK CONTROL TRADITIONAL BUYING few, large deliveries emphasis on price switch to cheaper suppliers JIT BUYING many small deliveries build long-term relationships supplier seen as a partner
- 6. JUST-IN-TIME PHILOSOPHY frequent regular small deliveries combined with long-term relationship with suppliers
- 7. STOCK CONTROL JUST-IN-CASE You need to carry extra stock to allow for problems JUST-IN-TIME You don’t need extra stock because you have solved problems If you hit another problem you solve it
- 8. STOCK CONTROL JUST-IN-CASE You need safety stock because: machines breakdown unexpected increase in demand for product supplier fails to deliver JUST-IN-TIME You do without safety stock by: solving problems giving workers responsibility for improvements working closely with approved suppliers
- 9. ADVANTAGES OF JUST-IN-TIME saves storage space money is not tied up in stock can pass these savings onto your customers by offering lower price
- 10. ESSENTIAL FEATURES OF JIT reliable supplier good communications between you and supplier and you and customer good quality control procedures good maintenance of machines reliable machines
- 11. JIT IS USED BY THESE COMPANIES Motorola Black & Decker Hewlett Packard
- 12. CRITICISMS OF JUST-IN-TIME higher transportation costs because of frequent deliveries this reduces amount saved requires road transport which is bad for the environment only suitable for products where the demand is known increases administration/ordering costs difficult to cope with sharp increases in demand
- 13. Questions What are the features of traditional stock control (JIC) Give 3 essential features of JIT Give 3 advantages of JIT over JIC. Give 3 disadvantages of JIT Name 2 companies which use JIT