Page 191 - APM Integrated Workbook STUDENT S18-J19

The role of quality in performance measurement

Just-in-time (JIT)

5.1 What is JIT?

A demand-pull system of ordering from suppliers which aims to
reduce inventory levels to zero.

As with TQM, performance measures must be aligned with the
programme’s CSFs.

 Originated with manufacturing organisations but can be applied to service
operations, e.g. with an aim to eliminate queues or wasteful motion.

5.2 JIT requirements

1 High quality and reliability, e.g. of suppliers, employees, machinery.

2 Elimination of non-value adding activities, e.g. storage of WIP.

3 Speed of throughput matched to customer demand.

4 Flexible production to respond immediately to customers’ order.

5 Lower costs as a result of the above.

Illustrations and further practice

Now try TYU question 5 from Chapter 13 of the Study Text.

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