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Outstandingly, there will be no production until the company received order for the product and there are no already finished goods waiting in the inventory. Taiichi Ohno industrialized this philosophy as revenue of convention customer demands with least delays. The transition from a traditional purchasing system to a JIT purchasing system can be a sluggish method or even impossible, because of unreliable suppliers.

The purchaser tries to co-operate with the vendor, with the goal of getting lesser, more regular supplies, on time, with the quality and quantity mandatory. Often the vendor is ready to co-operate, but is unable to satisfy these requests Elements of JIT To make JIT function parts and resources should be acquired as close as conceivable to the time they are needed; using frequents deliveries in contradiction of bulk contracts.

Attains a smooth, rapid flow of materials through the system. The JIT approach involves a unceasing promise to the chase of excellence in all phases of manufacturing systems and design.

The aims of JIT are to produce the required items, at the required quality and in the required quantities, at the precise time they are required.

In particular, JIT aims to achieve the following: i Reduction in inventories JIT purchasing seeks to match the usage of materials with the delivery of materials from external suppliers.

This means that material inventories can be kept at near-zero levels. The reliability of suppliers is of utmost importance and hence the company must build up close relationships with their suppliers.

This can be achieved by doing more business with fewer suppliers and placing long-term orders so that the supplier is assured of sales and can produce to meet the required demand.

Such factors will enable inventory levels to be kept as near to zero as possible and help to produce Aggrawal's claimed benefit.

Each product family is made in a work cell based on flow line principles. The variety and complexity of work carried out in these work cells is increased compared with more traditional processes , necessitating a group of dissimilar machines working within each work cell. Workers must therefore be more flexible and adaptable, the cellular approach enabling each operative to operate several machines.

Operatives are trained to operate all machines on the line and undertake routine preventative maintenance. It is factors such as these that result in an increase in labor productivity in a JIT environment. Traditionally machines were grouped by function. All the drilling machines were together, all the grinding machines were together and so on. A part therefore had to travel long distances, moving from one part of the factory to the other, often stopping along the way in a storage area.

All these are non- value-added activities which have to be reduced or eliminated. Material movements between operations are therefore minimized by eliminating space between work stations and grouping dissimilar machines into manufacturing cells on the basis of product groups.

Storage space is reduced due to the reasons set out in i above. Plant space is therefore kept to a minimum. Defects stop the production line, thus creating rework and possibly resulting in a failure to meet delivery dates. Quality, on the other hand, reduces costs. This level of quality is assured by designing products and processes, introducing quality awareness programs and statistical checks on output quality, providing continual worker training and implementing vendor quality assurance programs to ensure that the correct product is made to the appropriate quality level on the first pass through production.

The purchaser tries to co-operate with the vendor, with the goal of receiving smaller, more frequent deliveries, on time, with the quality and quantity required.