JPL implemented a Just-In Time

JPL implemented a Just-In Time - Exhibit IV RFP No....

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Exhibit IV RFP No. JIT568179 Page 1 of 5 July 30, 2003 JPL JIT OPERATIONAL CONCEPT DOCUMENT 1.0 INTRODUCTION 1.1 Background The Jet Propulsion Laboratory is the lead NASA Center for planetary exploration, a federally funded Research & Development Center. JPL spends millions of dollars annually on items consisting primarily of large volume, low value purchases of office supplies, paper goods, chemicals, miscellaneous electrical and mechanical parts, and microcomputer hardware, software, and peripheral equipment. Prior to the JIT system, these goods were purchased and delivered to JPL customers primarily through a conventional purchase requisition system. Customers would prepare a purchase requisition for the item, the request would then be converted to a purchase order by the JPL Acquisition Division. To reduce the volume of small repetitive purchases and to provide faster service, some high volume purchases were handled through pre-negotiated Blanket Purchase Agreements (BPA) with selected vendors. The frequently requested products would then be purchased in larger quantities and stored on-site to be distributed to JPL customers on demand. In order to lower the operations cost, reduce inventory, and increase the speed of delivery of commodities to its customers, JPL implemented a Just-In Time (JIT) Materiel Acquisition System in 1995. JIT differs significantly from existing Purchase Order, BPA and stores system, in that JPL and the vendors enter into an arrangement where the vendors will manage the inventory of selected commodities and deliver these to JPL on an expedited (or JIT) basis. JIT provides its customers with automated access to vendors that will deliver commodities to JPL on demand. The JPL JIT acquisition system currently processes approximately 42,000 requests per year, which has significantly reduced the items stored on-site in the JPL Stores Facility. Presently, the JPL Stores Operation stocks approximately 6400 inventory items with a total value of about $1 million. JIT improves the speed of delivery, provides cost savings, and encourages the development of long-term positive relationships with vendors. Such a commitment can be accomplished by creating an environment of openness and trust that fosters a shared interest and vision between JPL and its vendors. Benefits will accrue for
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This note was uploaded on 04/29/2009 for the course CBS 456765 taught by Professor Paul during the Three '09 term at Curtin.

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JPL implemented a Just-In Time - Exhibit IV RFP No....

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