Die to Operate a JIT

¶ … Die to operate a JIT inventory system. The company's manufacturing process has substantial flexibility, for either complex or single station operations. Additionally, the company has designed their processes such that they can utilize one supplier. Having one supplier precludes the need to hold some parts in inventory while awaiting the arrival of other parts. The entire set of inputs for each job can arrive the day the job is scheduled to be commenced.

Preferred is also able to utilize a just-in-time system because of its ability to perform secondary operations. This reduces the need for reliance on outside firms to perform these functions. Instead, outside firms are only needed to provide raw materials.

The company is impressive for its degree of flexibility. That it has developed its operations to bring essentially the entire design and production process in house is interesting because it gives them a competitive advantage. They have complete control over their processes, allowing them to meet tight deadlines with precision.

2) Roadway offers a variety of services, and these can be customized to suit the needs of the plant. The company offers expedited services with morning, afternoon or window delivery. The window can be as tight as one hour. These services fall under the Expedited Precision and Guaranteed Precision rubrics.

The service offered by YRC is strong, given the number of flexible options. As a manager of the JIT plant, however, I would prefer not to rely on premium-priced services to guarantee my deliveries as it defeats the cost-saving purpose of JIT systems. The YRC options are brute force solutions, rather than innovative. It is impressive to the degree that the company can offer a guarantee on delivery but it would be better of such excellence came at an everyday price. Furthermore, they do not demonstrate the sort of technological prowess and everyday excellence that will be necessary for me as plant manager not to worry.

3) Entrepreneur Magazine is geared towards startups, so the advice in this article is solid, basic advice. To an extent, the situations are oversimplified, but first-time businesspeople often overlook the importance of proper inventory management. They make these types of mistakes because they have not considered the costs associated with making mistakes in inventory management. The article's basic lessons are interesting, and valuable for the first-time entrepreneur.

4) the article in the Inventory Management Review focuses the risks of JIT on the risks of problems at the supplier. I feel that these risks can be mitigated. If a firm is going to have that close a relationship with their supplier, the firm should take an active role in understanding that supplier's capabilities and internal workings. This is the performance of due diligence.