Just-in-time JIT manufacturing is considered to be at the forefront of technological advancement. With improvements in virtually every industry, maintaining an effective production line while minimizing inventory costs is a very feasible option. Just-in-time systems are designed to keep inventory costs to a minimum, unlike older systems, with large warehouses loaded with back inventory. With technology that enables instant communication across the globe, production lines and stores don't have to wait days for inventory to be delivered. It can happen, well, just-in-time. Many companies are on the verge of switching to a just-in-time inventory system, to complement the millions of companies that have already implemented the system. It is generally recognized that effective implementation of just-in-time will result in significant inventory reduction. In fact, inventory levels are key indicators for measuring just-in-time performance (Harrison). The just-in-time philosophy in inventory management is simple: - Aim for a zero inventory level. - Produce items at the speed requested by the customer. - Eliminate all unnecessary lead times. - Reduce setup costs to achieve the smallest economic batch size, ideally a quantity of one. - Optimize the flow of material from suppliers through the production process to the point of sale of the finished product, so as to minimize inventories. - Ensure high quality and reliable on-time delivery from suppliers. - Implement a total quality control (TQC) program, which will minimize waste, rework and resulting production delays (Naylor). While the just-in-time inventory management philosophy is simple, the execution is not. In a just-in-time environment, the supplier should deliver raw materials and other purchased items when they are needed. A blanket purchase order or other appropriate form of basic agreement should cover the terms and conditions of the procurement. Delivery of the item must be directly to the point of use in the manufacturing plant. Handling materials in one part of the production line before they are moved to the correct location is time consuming and not cost effective. It is the supplier's responsibility to ensure a smooth flow of material to support production, which is achieved through optimal communication and coordination between the production plant and the paper supplier...... - Authorize individual production workers to issue supplier delivery quantities against blanket purchase orders, purchasing agreements, or contracts. - Establish the inventory policy code for each item based on the inventory control method and transaction reporting and recording method. - Review and establish minimum economic order quantities and safety stocks required by just-in-time manufacturing. - Measure inventory performance to determine the effectiveness of just-in-time manufacturing and inventory management (Naylor). Just-in-time will change our conventional thinking about inventory management and simplify our methods for inventory control. Proper selection and implementation of these methods will yield substantial benefits by improving customer service, shortening lead times, and significantly reducing inventory investments. However, it does not eliminate the need for proper inventory planning. Bibliography: Slack, Chambers, Harland, Harrison and Johnston, Operations Management, New York: Pitman, 1995Naylor J, Operations Management, New York: Pitman, 1996 Harrison A,, 1992