The impact of JIT on capacity management: A case study and analysis

This article describes the production planning and control techniques used at Verbatim Computer Disk Company in Charlotte, NC. The factory operates by management policy on a 24 hours-per-day, 7 days-per-week, 363 days-per-year, basis as if it were a process industry. Production of discrete units, computer disks, follows repetitive manufacturing methods including the implementation of just-in-time (JIT) methods into an existing material requirements planning (MRP) system. Production is based on the actual customer orders received from Marketing for disks from both US customers and international markets. Marketing uses price adjustments in coordination with Production Planning to ensure the factories operate at 100% capacity and within predefined inventory levels. This article discusses the relationship between Marketing and Manufacturing which allows for the attainment of a process industry-like economies of scale for a line of discrete products. Key characteristics of the production planning and control system are identified as are the current operating problems.