Question

1. One JIT consultant suggests that managers implement JIT by just removing inventories from the floor. Discuss what is likely to happen if they do this? Also, What would the Japanese do?

Answer 1

Answer:

Lean drive out non value added activities & eliminate the eight kind of waste in system. These eight wastes include: Transport – Moving materials and product needlessly, Inventory – Keeping more products than needed on-site, Motion – Workers make unneeded movements in the production process, Waiting – A product that sits idle while no value is added, Over Processing – Doing more work than the requires, Over Production – Creating more product than the customer currently demands, Defects – Production errors that impact the customer, Undeveloped Talent – Falling short of using employees talents, abilities and skills

There are five inbuilt principles comprised with the implementation of lean methods like Identifying value, Value-stream mapping, and Creating flow, establishing pull and seeking perfection.

JIT, decrease waste by receiving goods only as they are needed in the manufacturing process, thereby reducing the cost of inventor

JIT avoids the waste associated with overproduction, waiting for material and holding excess inventory. Manufacturers must forecast their requirements accurately. Just-in-time inventory model lets manufacturers reduce their overhead expenses while always ensuring that parts are available to manufacture their products. JIT model, a manufacturer has a better level of control over its entire manufacturing process. The problem that smaller orders will be needed for JIT. Therefore, new negotiations may be needed because of minimum order requirements

Just-in-time manufacturing is focused on efficiency, while lean manufacturing is centred on using efficiency to add value for the customer. Lean manufacturing takes the idea of JIT and looks at it from the perspective of customer value. The most important benefit of JIT is the elimination of raw material, inventory and product storage costs. Improved Lead Times; Business able to respond quicker, quicker set ups, fewer delays.