ng company which does not add value to the product. This definition of waste includes inventories, materials handling, quality problems, queues, shop floor delays, lead times, and unnecessary clerical and accounting procedures (Sheridan, 1998a).
JIT is a radically different manufacturing management philosophy. JIT demands (1) flexibility on the shop floor, and (2) flexibility in cost accounting practices because many traditional characteristics of the manufacturing process must be eliminated (Flynn, Sakakibara, & Schroeder, 1995).
As with any change in a production control system, problems may be encountered in the implementation of a JIT system. Four potential problem areas that must be considered by the manager to preclude the development of major difficulties for the manufacturing facility involve suppliers, quality, cost accounting, and employee empowerment (Flynn, Sakakibara, & Schroeder, 1995).
Timing is crucial for an efficient JIT system. Information technology can be used effectively in a production system incorporating JIT to minimize lead times in the manufacturing process. The development of strong supplier relationships can maximize the effectiveness supply line management based on JIT. Strong supplier relationships must include knowledge sharing, good communication, trust, and cooperative planning. In a JIT system, suppliers must become a part of the organization's demand-flow system, responding rapidly and flexibly to the organization's needs ("Steel service centers: Partners in profitable manufacturing," 1996).
In a JIT system, synchronization must exist between production and supplier shipments. This synchronization may be attained efficiently by linking the production facility and major suppliers into what becomes, in effect, a single operational unit (Flynn, Sakakibara, & Schroeder, 1995).
A JIT system can create quality-related problems if effective counter procedures are not implemented simu...