STORAGE

Segment    Family    Class

78

13

0

Adopt JIT inventory system

SDG Alignment

9. Build Resilient Infrastructure, Promote Inclusive and Sustainable Industrialization and Foster Innovation

UN SDG Target

9.4

Target Description

By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

Level of Effort

Level of Effort Scale

3

1 -Quick Wins: solution involves adding criteria for the good or service being purchased (ex: certifications), minimal internal process changes.

2 -Long Term Adoption: solution requires some changes to internal processes and/or more capital investment (ex: digital transformation to reduce paper use).

3 – Disruptive Opportunities: requires significant investment and changes to internal processes (ex: retrofitting building)

Category Assessment

Assessment

1. Analyze the time flexibility in each area of production to determine the applicability of a JIT option can have.

2. Recognize risk areas and loopholes to ensure that a buffer is in place for the parts identified.

3. Improvise to identify ways to manage uncertainties and eliminate the causes for variations inflows to minimize physical buffers.

4. Assess your relationship with your supplier as a strong relationship with suppliers, or one where they rely on your business would give you leverage to make a big transition to accommodate your JIT needs.

Opportunity Identification 

Business:
Increase the competitive advantage in terms of consistently and continuously meeting consumer’s requirements, improve the quality of construction materials and components, and minimized inventory (cost savings).

Sustainability:
Significant energy savings from lower inventory being held.

Strategy Build & Execution

1. Align with stakeholders on the just in time (JIT) system and educate about the benefits of the system.

2. Identify risk areas or points of uncertainty and maintain inventory accordingly alongside the JIT system process implementation.

3. Look into the bottlenecks and discern the various sources of the uncertainty associated with them. Analyze and plan to reduce the occurrence of these to reduce workflow variations.

4. Maintain inventory stock of materials based on critical analysis in a progressive manner.

5. Develop training programs/material for new recruits and regular employees to engage with the implementation and benefits of JIT.

Supplier Negotiation & Contract

1. Leverage on the relationship with a supplier to develop JIT system-related statements into the contract. Accordingly, necessitate the need for a long-term contract to build on the relationship as well.

2. Negotiate with suppliers to accommodate their requirements as well to compensate for the unpredictable nature of this approach.

Supplier Performance & Management

1. Maintain monthly reports on measures related to JIT systems - the percentage of deliveries on time, the total amount of energy used, turnaround time, and the amount of material waste produced.

2. Regular quarterly meetings to discuss the JIT system implementation in general, and feedback from each team on areas of improvement.

3. Half-yearly meetings to discuss new technologies that complement the JIT program and make it more efficient.

Resource Links

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