Introduction:
The external customer-supplier chain can be considered from the supply angle and from the customer angle. The supply chain has evolved from an era where manufacturing organisations were most concerned with controlling the flow of materials/components from their suppliers, to an era where supply chain management started to become concerned with supplier management, material management, information flow, customer service and long term relationships.
The use of JIT in customer-supplier chains:
JIT component |
Potential benefit |
Kanban |
Better quality |
Reduced set up time |
Less scrap |
Smaller lot size |
Less raw material |
Production smoothing |
Less work-in-progress |
Standardization |
fewer finished goods |
Uniform and invariable output rate |
Increased teamwork |
Multifunction workers |
Higher worker motivation |
Streamlined process design |
Increased worker and equipment efficiency |
flexibility and versatility |
Saved space |
|
Increased productivity |