a. A Just-In-Time system is characterized by:

i. A move towards zero inventory.

ii. Elimination of non-value-added activities.

iii. An emphasis on perfect quality i.e., zero defects.

iv. Short set-ups.

v. A move towards a batch size of one.

vi. 100% on time deliveries.

vii. Constant drive for improvement; and

viii. Demand-pull manufacture.

b. Practical implication of JIT production

1. Increased productivity – Production times must be very fast in order to meet new customer orders quickly.
2. Improve quality – Production must be reliable and there must not be poor quality production. Smaller and frequent deliveries make it easier to maintain quality.
3. Eliminate waste – There must not be hold-ups, stoppages or bottlenecks leading to rejected items and scraps.
4. Reduced obsolete inventory – Finished goods must be available when customers order them and raw materials and components must be supplied when they are needed for production.
5. Reduced cost – the improved efficiency provides substantial cost savings thereby reducing cost.
6. Improved supplier relationships – JIT can improve relationship with suppliers.

         c. JIT Purchasing

1. JIT depends for its success not only on highly efficient and high-quality production, but also on efficient and reliable supply arrangements with key suppliers.
2. Reduce or eliminate inventory and work in progress.
3. It enhances performance as this leads to improved operational flow.
4. JIT purchasing policy is based on consistency and quality rather than looking for the lowest purchase price available.
5. Ensure deliveries arrive in the factory exactly at the time that they are needed.
6. Improved cash flow – making purchases when required helps the organizations cash flow.

          d. Problems with JIT

1. Zero inventories cannot be achieved in some industries because of unpredictable demand.
2. It might be difficult to arrange a reliable supply system with key suppliers.
3. JIT purchasing system will increase ordering costs.
4. Over dependence on automation – JIT system can become overly dependence on automation.