Just-in-time Purchasing(ppt 20page)

PresentationOverview
DefinitionofJust-in-timePurchasing
Differentuses
Howitwillhelpyourcompany
ExamplesofJust-in-timePurchasing
Just-in-timePurchasing
Anapproachtopurchasingthatrequireslong-termagreementswithfewsuppliers

Brainstorming


Howcanjust-in-timepurchasingbeusedinyourorganization?
AdvantagestoJIT
Reducestheneedforcentralwarehousingandstorage
Morepersonalrelationshipwithsuppliers
Long-termrelationshipsthathelptocertifysuppliers
Receivinginspectionisreducedandinsomecaseseliminated

Loweredvarietyinsuppliers
Reliabledeliveryschedules
Highqualitymaterialsused
Reducedwaste

DemandsonPurchasingofJIT
Reducednumberofsuppliers
Stableandgoodcommunicationthroughoutafirm
Locatingsuppliersnearby
Long-termrelationships
Helpingsupplierstoincreasequality
Nottogethungupbysinglesourcing
Buyingfromsmallfirms
LimitationsofJIT
Difficultytochangeoldways
Morepressureonworkers
Successisvaried
Employeecommitment
Productionlevels
Employeeskills

DifferencesbetweenJITandTraditionalPurchasing
JITPurchasing
Smallerlotsizes
Morefrequentdeliveries
Norejectionfromthesupplier
Long-termcontracts
Buyerdecidesdeliveryschedule
Innovationencouraged
Minimalpaperwork
Lessformalcommunication
Traditional
Relativelylargelotsizes
Lessdeliveriesathigherquantities
2%rejectionfromsupplier
Lowestpriceismainobjective
Timeconsumingformalpaperwork
Formalcommunication



WhyorganizationsuseJITPurchasing
Reducewaste
Increasedcycletimes
Higherqualityinproducts
Fewersuppliers
Reductioninwarehouses
Dependabledelivery

Example–Faxban
WhatisFaxban?
Itcombinesproductionfloorfaxmachinesandkanbanre-supplysignalstolowertransactionprocessingandsavemoney
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