Apart from the general commitment to JIT, two things essential to the implantation of JIT are that: first, all parts must arrive where they are needed, when they are needed and in the exact quantity needed. Secondly, all parts arriving must be usable.
In achieving these requirements, purchasing has the responsibilities summarized below;
- Liaison with the design function-the emphasis should be on performance rather than design specifications. User specifications enable suppliers to be more cost-effective by being more innovative with regard to the quality and function aspects of supplies. In JIT purchasing, value analysis is an integral part of the system and should include suppliers.
- Liaison with suppliers- to ensure that they understand thoroughly the importance of consistently maintaining lead times and a high level of quality.
- Investigation of the potential suppliers within reasonable proximity of the purchaser to increase certainty of delivery and reduction of lead time.
- Establishing strong, long term relationships with suppliers in a mutual effort to reduce costs and share savings. This will be achieved by the purchaser‘s efforts to meet the suppliers expectations regarding:
- Continuity of custom
- A fair price and profit margin
- Agreed adjustments to price when necessary
- Accurate forecasts of demand
- Firm and reasonably stable specifications
- Minimizing order changes
- Smoothly timed order releases
- Involvement in design specifications
- Prompt payment
- Establishment of an effective supplier certification program- which ensures that quality specifications are met before components leave the supplier so that receiving inspections are eliminated.
- Evaluation of supplier performance and the solving of difficulties as an exercise in cooperation.
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