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ons about the parts we makes for the customer. The information allows customers to conduct their own investigation into their usage and needs.

Adjust the estimated annual usage (EAU) data used to run the system. Trigger points for releasing additional materials are based on the amount taken the previous time versus the ‘live” EAU plan.

Determine customer plans or changes for the future.
These quarterly get-togethers are helpful from the start, but after a couple of years, they become extremely valuable in understanding customers’ inventory use in peak and slow seasons.

HOW DO JIT & SUPPLY SYSTEM MANAGEMENT WORK IN THE RIGHT SITUATION?
 

With good customer communication in place, inventory management techniques can function at their best. Here’s a quick look at two JIT manufacturing examples that help Dahlstrom Roll Form control its inventory yet still respond to customer needs in a timely way.

Team Setups
Custom roll forming prices are determined by looking at the setup time vs. the number of pieces you order. If it takes 5 hours to prepare the machine, setup costs are a large part of the total.

Consider this scenario. For a run of 1,000 roll formed parts for inventory, it takes one person 6 hours to set up a machine. Two people can do it in 3 hours.

In the first case, 6 hours are spread out over 1,000 parts per cost. In the second case, 3 hours of machine time is spread over 1,000 parts.

But beyond that, there’s another option. Either make the 1,000 parts (and gain 3 hours of machine run time) or make just 500 of them (equal to your 6-hr./1,000 parts cost, but you gain the 3 hours PLUS your inventory is cut in half PLUS the actual run time to make the parts is halved!).

In other words, cut the inventory in half or run the full 1,000. It all depends on your need.

Having a shorter run time does provide opportunities to do more. It might be to fit another customer’s urgent order into the 3-hour opening; or, just advance the schedule up 3 hours, creating a lead-time advantage for all scheduled Dahlstrom customers.

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