The management at Megafilters Ltd has been discussing the possible implementation of a just-in-time (JIT) production system at its Sheffield plant, where oil and air filters are manufactured. The Metal Stamping Department at the Sheffield plant has already instituted a JIT system for controlling raw materials inventory, but the remainder of the plant is still discussing how to proceed with the implementation of this concept. The Metal Stamping Department implemented JIT with no advance planning, and some of the other department managers have become uneasy about adopting JIT after hearing about the problems that have arisen. Robert Goertz, manager of the Sheffield plant, is a strong proponent of the JIT approach. He recently made the following statement at a meeting of all departmental managers: ‘We will all have to make many changes in the way we think about our employees, our suppliers and our customers if we are going to be successful in using JIT procedures. Rather than dwelling on some of the negative things you have heard from the Metal Stamping Department, I want each of you to prepare a list of things we can do to make a smooth transition to the JIT approach for the rest of the plant.’

Required

1. The JIT approach has several characteristics that distinguish it from conventional production systems. Describe these characteristics.

2. For the JIT approach to be successful, Megafilters Ltd must establish appropriate relationships with its suppliers. Describe these relationships under JIT.