| |
| |
|
Management Information |
|
|
|
Importance of Just-In-Time Inventory System
In today's competitive world shorter product life cycles, customers rapid demands and quickly changing business environment is putting lot of pressures on manufacturers for quicker response and shorter cycle times. Now the manufacturers put pressures on their suppliers. One way to ensure quick turnaround is by holding inventory, but inventory costs can easily become prohibitive. A wiser approach is to make your production agile, able to adapt to changing customer demands. This can only be done by JUST IN TIME (JIT) philosophy. Taiichi Ohno, a former shop manager and eventually vice president of Toyota Motor Company, is the individual credited most for the with the development of just-in-time. It is a term used to describe the Toyota production system, is widely recognized today as the one of the most efficient manufacturing system in the world. In simple words we can explain JIT only required necessary units be provided in necessary quantities at necessary times. Producing one unit extra is as bad is being one unit short. Completing one day early is as bad as finishing one day late. Items are supplied "just-in-time". Ohno describes the development of JIT as *By actually trying, various problems become known. As much problems become gradually clear, they taught me the direction of the next move. I think that we can only understand how all of these pieces fit together in hindsight. The concept is very simple, if you produce only what you need when you need it, then there is no room of error. JIT has truly changed the face of manufacturing and transformed the global economy. JIT is both a philosophy and collection of management methods and techniques used to eliminate waste (particularly inventory). In JIT workers are multifunctional and are required to perform different tasks. Machines are also multifunction and are arranged in small U-shaped work cells that enable parts to processed in a continuous flow through the cell. Workers produce pars one at a time within cells and transport those parts between cells in small lots. Environment is kept clean and free of waste so that any unusual occurrence are visible. Schedules are prepared only for the final assembly line, in which several different models are assembled at the same line. Requirements for the component parts and subassemblies are then pulled through the system. The "PULL" element of JIT will not work unless production is uniform and lot sizes are low. Pull system is also used to order material from suppliers (fewer in numbers usually). They make be requested to make multiple deliveries of the same item in the same day, so the manufacturing system must be flexible. Just-in-time inventory is viewed as the waste of resources and considered as obstacle in improvement. As there is little buffer inventory between the workstations, so the quality must be high and efforts are made to prevent machine breakdowns. When all these things are taken into consideration, system produces high-quality goods, quickly and at low cost. This system is also being able to respond to changes in customer demands. These elements of JIT can also be applied to the almost any operation, including service operations.*K.Suzuki, The Manufacturing Challenge(New York: Free Press, 1985), p250 Ali Abbas, Student of Operations Management, Currently doing BBA form Mohammad Ali Jinnah University one of the leading institute in Business Administration & Computer Sciences of Pakistan
MORE RESOURCES:
management - Google News |
|
|
|
RELATED ARTICLES
Innovation Management - Emotion, Habit, and Culture can be Hard to Change! Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Manage Communication to Add Value Management guru Tom Peters says white collar workers and managers in functional departments need to protect their futures.They have to learn "the difference between doing totally acceptable work and creating very new value. What is Knowledge Management Anyway? When you think of all the things companies have, you do not always consider the knowledge they have. For instance, a company is only as good as its employees, its resources, and its knowledge. What is Data Visualization? Data Visualization is InteractiveHave you ever booked your flight plans online and noticed that you can now not only view seat availability but also choose your own seat? Maybe you have notice that when you want to look up information online on another country, you may find a website where all you have to do to get political, economical, geographical, and other information is drag your mouse over the area of the country in which you are interested.Maybe you have put together a business presentation consisting of multiple levels of complex marketing and budget information in a simple display which allows you to review all aspects of your report by simply clicking on one area of a map, chart, or graph. Check Your Communication Skills Use this check list to assess your communication skills.Focus* Do you pay complete attention to others when they are speaking? (A wandering focus discourages open communication. Three Ways to Transmit Loud and Clear The heart of a fool is in his mouth, but the mouth of a wise man is in his heart. --Benjamin FranklinHow often have you said something that you thought was perfectly clear, only to find out later that the receiver had taken it in exactly the wrong way?A boss's ability to communicate well with direct reports depends on the capacity to transmit meaning between people through the use of words. Build Your Business (On A Shoestring): Hire a College Intern Starting up a new venture or business can be one of the most exciting times of your life. It can also be one of the most stressful. Its a Training Issue! There's a common phrase used by Organizational Development and Human Resource professionals, when identifying kinks in the growth of an organization or company - "It's a training issue." The same phrase can be applied to almost any group of human beings that are working together to achieve a common goal. What Every Manager Should Know About How to Conduct Successful Meetings Do you announce a meeting and find either no one shows up on time, they come with their own agenda, or the meeting goes on and on? If this is true in your case, then worry no more.Here are six steps to help you develop successful meetings:1. Involving People Gave Us the Improvements We Needed We had a problem with handling materials in a production department. Our process required raw materials to enter the department, be processed, and leave the department. Dont Wait for Tax Time to Look at the Bottom Line A curious thing happens to entrepreneurs in the spring of every year. They wake up one day and realize they had better figure out how much money they made last year so they can pay their taxes. Make It Easy to Reply - Voice Mail That Works If you are like most business people, voice mail has both simplified and complicated your life. On the good side, it helps you exchange information. Using an Appraisal to Benefit Your Organization PERFORMANCE APPRAISALS BENEFIT THE ORGANIZATION:Appraisals help spot employees with potential for advancement. Appraisals bring attention to the so-called high-potentials - people who have both the will and the ability to excel in the organization. Prepare A Winning CV There is every chance that elements of this article may not be appropriate for everyone in every situation - and that's precisely the point! Every situation is different. No two projects are the same. How to Meet Quality Standards with ISO 9001 In today's hectic business environment, it is vital that we are all on the same page, right? But how do we know if we meet those standards? Business owners and executives can avoid the uncertainty, and that's where ISO 9001 certification comes in.Standardizing Quality SystemsThe ISO, or International Organization for Standardization, was established in 1947 to develop international standards for everything from electronics to management systems. Conflict at 36,000 ft This was supposed to be one of those sleepy flights that leaves late, crosses two time zones, and arrives at 11:00 p.m. Preventative Maintenance of Company Delivery Vehicles If you have company delivery vehicles at your small or medium sized business you should have a preventative maintenance schedule and procedures for employees who are drivers of these vehicles. When discussing preventative maintenance over the years with business owners the first thing which comes to mind is 'Oil change' and usually the business owner who is on the hook for the loans on these vehicles is more than aware of that fact. Quality Improvement is Free The point of a quality improvement program should not only be to improve a product or the delivery of healthcare but it should also be to save time and money by reducing or eliminating waste or errors. For example, a doctor or nurse practitioner writes a prescription. Make the Most of Your Time - Focus on Strengths Once working and focused in tune with what they do best, your people are freed up to deliver their very best performances. They encourage others to work to their strengths too. Lawyers With 2 Hands And Everything Else I heard this back a few years ago. The boss yelled, "Get me a good lawyer but not the one with two hands!""Huh?" secretary was puzzled.
|
| Article List | Index | Site Map |
|
All logos, trademarks and articles on this site are property and copyright of their respective owner(s).
The comments are property of their posters, all the rest is Copyright © 2006 CanadaSEEK.com - All Rights Reserved. |
