Just In Time

Just-in-Time (JIT) inventory focuses on having the right inventory (raw material, packaging supplies, WIP, or finished product), in the right place, at the right time, and at the right quantity – some would even say the exact quantity.  Inventory is costly and one of the classic 7 deadly wastes of Lean.

There are direct costs associated with inventory: the cost of working capital, warehousing expenses, and the cost associated with inventory that goes obsolete or out of date.  There are also some more subtle costs associated with inventory.  Inventory can serve as a safety net and hide many inefficient steps in the supply chain.  Lowering your inventory will lower the safety net and uncover waste in your process challenging the supply chain to drive out the waste.

Please take a look at the poll below and let me know what you think would happen if you lowered inventory today.

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About Christian Paulsen

Christian Paulsen is an Executive Consultant with 20 years of Lean Manufacturing. Chris adds value to organizations by driving process improvement and bottom line savings. Chris intends to help others by sharing the lessons learned after a quarter century of operational leadership, marriage, parenting, and even longer as a Cubs fan. Your comments on this blog are welcome. You can also connect with Chris via LinnkedIn, Twitter, and Facebook in the right sidebar. Chris welcomes your comments. Christian's professional services are available by contacting him through LinkedIn (right side bar)
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