Learning Objectives
       1.   To understand lean production systems.
       2.   To identify the differences between JIT and MRP.
       3.   To identify the relationship between JIT and 
            purchasing.
       4.   To identify critical JIT-purchasing advantages.
       5.   To identify the activities needed to implement JIT 
            purchasing.
       6.   To determine the role of culture in the 
            implementation of JIT purchasing.
       7.   To critically analyze the impact of JIT purchasing on 
            a buying firm.
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        Introduction to Lean Purchasing
    • There has been a shift in manufacturing business 
       processes in practically every American industrial setting. 
    • The lean thinking paradigm now includes the purchasing 
       function. Lean concepts have had a significant effect on 
       the profitability in almost all industrial settings. 
    • The key lean principles focus on people, postponement, 
       efficiency, and the elimination of waste. All of these key 
       business principles have a direct effect on the purchasing 
       function.
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                   Lean Purchasing
 •  The just-in-time (JIT) system is no longer an esoteric concept 
    in the manufacturing world today. In the face of intense global 
    competition, many firms in the United States are looking at 
    improved techniques to manage their manufacturing 
    operations.
 •   A comprehensive survey of just-in-time practices in the 
    United States found that 45 percent of the firms contacted 
    had implemented JIT programs and another 22 percent were 
    planning to implement JIT the following year. 
 •  JIT has evolved as a novel manufacturing concept based on a 
    philosophy of trust and commitment of the entire 
    organization. The benefits of implementing a JIT system 
    impact all entities involved in supply-chain management 
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            Lean Production Systems
 •  In its simplest form, “the manufacturing process” is a 
    composition of the material flows. Just-in-time (JIT) is 
    designed to manage the flow of materials, components, tools, 
    and associated information.
 •  JIT is also referred to as lean production.
 •  An organization driven by a JIT philosophy can improve profits 
    and return on investment by reducing inventory levels, 
    reducing variability, improving product quality, reducing 
    production and delivery lead times, and reducing setup costs.
 •  The JIT (lean) system is a powerful management tool that 
    could easily determine the success or failure of the 
    manufacturing system.
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       JIT and MRP Production Systems
 • JIT and MRP production systems have followed two 
    independent research streams. 
 • As the popularity of JIT motivated by the success of 
    Japanese manufacturing firms has grown, numerous 
    global practitioners initiated complete changeovers 
    from the traditional MRP-based methods to JIT 
    methods.
 • The current shift toward the so-called lean thinking 
    manufacturing environment is one of the major 
    motivations for future JIT research.
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