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Just-in-Time Supply of Aerospace Hardware A Win-Win for the Customer and Supplier
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Abstract
Just-In-Time (JIT) Inventory Management is a common-sense parts delivery philosophy in which a supplier “partner” closely manages the flow of material for a customer so that all parts requirements arrive at the appropriate workstation “just-in-time” for assembly. Properly implemented, the concept is a win-win for the customer and supplier. For the customer it offers (i) better cash flow; (ii) elimination of waste; (iii) lower overhead; and (iv) better utilization of staff. The supplier, in turn, can expect (i) higher and predictable sales volumes; (ii) increased inventory turns; and (iii) added “buying power” with their sub-tier suppliers.
The concept is equally applicable to airframe and airframe-component manufacturers, and to aircraft maintenance and repair facilities. JIT commodities may range from major airframe components, to the “nuts and bolts” that hold these components together. Numerous programs for the latter commodity have been implemented during the past several years, and still continue in successful operation today.