JIT Delivery

Background

A large engine manufacturer implemented a JIT delivery system with its suppliers to reduce its overall supply chain costs. Parts needed to be ready for pickup at the suppliers shipping dock less than 48 hours before they were needed on the assembly line.

UGA Solution

UGA developed a kanban type program. The program setup minimum safety stock levels of finished goods inventory for all the part numbers involved in this JIT system. Utilizing a combination of historical and forecast usage, UGA was able to optimize lot runs in their manufacturing process and reduce the number of machine setups. A customer service person was dedicated to keeping on top of all order and schedule changes and communicating these changes to the production control center.

Result

For the past several years, the customer has been able to reduce on-hand inventory without the fear of assembly line shutdowns.

Tools Used

• Web based CRM systems
• Returnable dunnage
• Dedicated freight carriers