The management at Megafilters Inc. has been discussing the possible implementation of a just-in-time (JIT) production system at its Illinois plant, where oil filters and air filters for heavy construction equipment and large, off-the-road vehicles are manufactured. The metal stamping department at the Illinois 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. Some of the other department managers have grown increasingly cautious about the IIT process after hearing about the problems that have arisen in the metal stamping department. Robert Goertz, manager of the Illinois plant, is a strong proponent of the JIT production system, and recently made the following statement at a meeting of all departmental managers. "Just-in-time is often referred to as a management philosophy of doing business rather than a technique for improving efficiency on the plant floor. 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 just-in-time 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 just-in-time philosophy of management for the rest of the plant."

{Required:}

(a) The just-in-time management philosophy emphasizes objectives for the general improvement of a production system. Describe several important objectives of this philosophy.

(b) Discuss several actions that Megafilters Inc. can take to ease the transition to a just-in-time production system at the Illinois plant.

(c) In order for the just-in-time production system to be successful, Megafilters, Inc. must establish appropriate relationships with its suppliers and employees. Describe each of these relationships.