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How to link the problem to overcome to the reliance of supplier?
And why the staff need to be multi skilled with the traditional functional division of cost become less appropriate?
One of the standard requirements for JIT to work is to have suppliers who can quickly and reliably send you the required componenrts (because you have no inventory in reserve). The components also have to be of the right quality (you have no time in which to send them back for replacement) and also the supplier has to be sufficiently close for the goods to arrive without delay (of the goods must be light enough to use air-freight). You cannot normally have JIT for a firm based in Europe if goods have to come y ship from Japan).
In response to orders coming from customers goods ordered have to be made (there are none in stock). Goods are not made in large batches for inventory. This means that manufacturing has to be flexible and employees must be multi-skilled so that they can respond quickly to orders received. An employee with a single skill might otherwise be very underemployed until an order for a particular type of product needing their skills arrived.
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