JIT Vs JICJIT Vs JIC

Just in time Just in time

VsVs

Just in caseJust in case

ObjectivesObjectives

To be able to compare JIT with To be able to compare JIT with JICJIC

JIC???JIC???

Stock is held just in case we Stock is held just in case we need it (We have a buffer stock)need it (We have a buffer stock)

10 minutes to research JIC:10 minutes to research JIC: What is it?What is it? Advantages?Advantages? Disadvantages?Disadvantages?

Costs/problems of JICCosts/problems of JIC

Advantages of JICAdvantages of JIC

Can meet sudden changes in DCan meet sudden changes in D Can speed up production if Can speed up production if

necessarynecessary Economies of ScaleEconomies of Scale Little downtimeLittle downtime

Disadvantages of JICDisadvantages of JIC Really these are the costs of Really these are the costs of

stockholdingstockholding

Just in timeJust in time

Exactly what it says on the tin!Exactly what it says on the tin! 10 minutes to define, suggest 10 minutes to define, suggest

advantages and disadvantagesadvantages and disadvantages

Recap…WHY USE JIT?Recap…WHY USE JIT?

Stock holding costs downStock holding costs down Op costs downOp costs down Cashflow upCashflow up Motivation upMotivation upHow so?How so? Waste downWaste down Relationship with suppliers up Relationship with suppliers up

(This becomes vital)(This becomes vital)

However…However…

Very reliant on external suppliersVery reliant on external suppliers Low stock levels means no room for Low stock levels means no room for

errorserrors Increases in D can cause probsIncreases in D can cause probs Lost EofSLost EofS Admin costs upAdmin costs up Needs sophisticated computer Needs sophisticated computer

technologytechnology Needs to be part of the cultureNeeds to be part of the culture