In a JIT environment the production policy of having the right materia
ls of the right quality of the right quantity available at the worksta
tion must be operative. To ensure component availability, companies ar
e returning to floor inventory systems which are creative, simple and
cost effective, although they may appear to ignore some cost accountin
g principles. The procedures relevant to master kitting exemplify seve
ral MRP, JIT, FMS and group technology concepts for reducing total inv
entory, reducing setups and changeover time and increasing productivit
y, flexibility and service to customers be they inside or outside the
plant or department.