House of Toyota-JIT-process.

Common mistake a business often does is thinking of how to start a story but not of how ending it, as a matter of fact, thinking about the ending makes it so clear in how to start and what should be done and what shouldn't, raising an obvious red flag of "As long as the processes are in order, let’s make as many units as we can because we never know when things might go wrong again." Therefore, developing synchronized understanding for the needs of our partners both downstream and upstream through communicating information and planned promotions will definitely help supply chain at least start with setting proper material requirements planning resulting in BOM cost reduction.

Hence, in traditional manufacturing, business often build a starry eyed guess on what the customer will want blindfolded with targeted revenues instead of leaning on partnerships built on authentic understanding, proper forecasting methods and maneuvering the muddled global logistics costs leading to a repetitive conflict against what organization suppose to produce in every single S&OP meeting. Such a push towards producing specific blend of products in large batches will result accordingly in consuming long lead times of order preparation, queue, setup and run causing huge amounts of WIP in-addition to large quantities of stocks that haven't yet been ordered by customers.

On the other hand, Taiichi Ohno at the early 70's shows to apply Just-in-time for shifting the process LEAN saving businesses from suffering of a built-up cash flow problems by only producing when there is an actual demand (Pull Production) counting on One-Piece Flow to eliminate the activities that don’t bring any value and reducing all kinds of Muda (waste):

• Time.
• Overproduction.
• Transportation.
• Processing.
• Inventory.
• Motion.

depending on LEAN preventive arsenal represented in a mistake proofing method POKA YOKE marshaled by an error detection method JIDOKA to eliminate product defects waste as well to ensure quality through:

• Discovering the process abnormality.
• Shutting down the workflow to prevent quality issues.
• Identifying and solving the root cause of the process abnormality in timely fashion.