Just-in-Time to Just-in-Sequence

For the past few years, competition has increased for several manufacturers and their suppliers. Customer expectations for higher customized products with shorter delivery times have increased supply chain complexity. Thus, obtaining or maintaining competitive advantage required organizations to offer a greater variety of products with multiple variant combinations. With the pull-based Just-in-Time (JIT) system, numerous variants had to be in stock at facilities stores. This would have greatly increased space, stock levels, inventory handling costs, and working capital.

Organizations still wanted the right materials delivered with the right specifications, right quality, and at the right places via JIT. However, they also wanted higher flexibility to meet customized orders, shorter cycle times, less production complexity, and lower costs. These requirements were met with Just-in-Sequence (JIS) which requires materials, production, and shipping to be done on-time and in sequence. Likewise, material flows are perfectly synchronized, supply chain processes are leaner, and customers enjoy more custom products.

JIS requires delivery and some production to be executed in sequence. For production, certain materials may be produced in batch and stored in stores close to production lines. When manufacturers’ sequence orders arrive, the stored materials can be repackaged and used in sequenced production and assembled for quicker dispatch. JIS requires more frequent deliveries in smaller quantities. To offset higher transportation costs, suppliers may move closer to manufacturers’ plants or into a supplier park.

Just-in-Sequence Requirements

To maximize the benefits of JIS, manufacturers and suppliers must collaborate and work together for the supply and delivery of components per production schedules and forecasts. For some cases, there is less than a two-hour lead time given by an OEM to manufacture products. Greater transparency, efficiency, information sharing, and coordination in real-time are required to minimize production disruptions and missed delivery dates. Inbound logistics can disrupt downstream production and dispatch due to lack of supply, machine breakdowns, quality defects, and late delivery.

Outbound logistics must be executed to deliver correct and compliant components on time and in sequence to further minimize inventory, space requirements, and warehouse costs. I.e., materials must arrive on time for removal from pallets or containers and for assembly into final product; without sorting or warehousing. Production can come to a halt if correct materials do not arrive at a specific time and assembly line location or the materials are incorrect, damaged, or of poor quality. Likewise, JIS requires a high level of synchronization for inbound logistics, production, and delivery.

SMI Consulting Technologies Simplifies JIS for Enterprises

Since 2010, SMI Consulting Technologies (SMICT) has helped organizations implement or improve Just-in-Sequence for production and logistics. Not consistently and successfully meeting customers’ requirements can result in negative financial implications. With the use of audits, consulting, process optimization, and monitoring; SMI Consulting Technologies helps enterprises minimize the risk of downstream production disruptions.

Production disruptions are typically caused by supply (missing, late, or incorrect), quality (wrong, defective, or damage), delivery (late or damage), and people (human error) issues.

Any of these issues can completely shut down assembly lines due to specific requirements or heterogeneity per predefined sequences; and lack of variant replacements in storage. Finally, SMI Consulting Technologies help enterprises minimize data capture/transformation issues for JIS orders and optimize supplier management to identify potential disruptions in advance.

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