Adoption of just-in-time based quality assurance and purchasing practices

Feasibility of transforming purchasing and quality control operations from conventional to just-in-time (JIT) practices is discussed. The study is confined to the dock-to-stores area of an engine manufacturing plant. Components used in the study are selected from a representative sample of inventory classes, commodity groups and agreement types with vendors. A time/cost analysis is carried out for the components selected so as to evaluate the cost effectiveness of the conventional purchasing and quality control. Findings on savings in terms of inventory-related costs and inventory turnover through the implementation of JIT practices are reported. A transformation framework is then developed to determine the suitability of individual components for JIT based practices. Cases are presented to demonstrate the functioning of the framework.