Question

Definition of Just in Time and techniques of JIT, Difference between Traditional and JIT purchasing. Your detailed essay answer should be at least 2 to 3 pages long with suitable examples.

Answer 1

The just-in-time (JIT) is a management strategy that reduces inventory and increases efficiency. JIT inventory refers to an inventory management system with the objectives of having inventory readily available to meet demand, but not keep excess inventory of stock parts

example:Toyota adopted this system for first time as part of Toyota Production System (TPS) and it has been implemented successfully in various industries.Toyota never allows raw materials brought to the production floor until an order is received. Thereby no inventory handing cost ,minimum amount of inventory which means lower costs. Without having to worry about disposing of expensive inventory ,handling cost Toyota has been focusing on its production side.

Difference between Traditional purchasing and JIT purchasing

Basis	Traditional purchasing	JIT purchasing
Inventory	Always in stock to keep production process continuous	Low or zero inventories
Queues	Queues at work production site.	Small lot sizes and low inventories result in small or no queues
Cost reduction Tools	100%capacity production, labour reduction	Accelerated flow of products to reduction in lead times
Inventory supply to production site	Pull system	Push system
Delivery window	Wide	Narrow
Deliver lead time	Long and relaxed	Shorter
Procurement	From multiple vendors	One vendor
Delivery frequency	Infrequent due high ordering cost keep bulk inventory at a time	Frequent because small lot are keep prior to production

Techniques of JIT

1. Kanban system:kanban helps to avoid supply disruption and overstocking of goods at various stages of the manufacturing process achieve higher throughput with lower delivery lead times.introduced by Taiichi Ohno in the manufacturing industry
2. Lead Time and Cycle Time Reduction :Lead Time and Cycle Time Reduction in JIT environment enables companies to respond quickly to customers' needs . It is important to for a company to be lead time shorter as much as possible to gain the benefits of JIT
3. Small lots of production: movement of small lots in the system reduces inventories during operation. This reduces storage cost and WARE HOUSE space requirements. BUT ALSO small lots is that it reduces chaos in the workplace
4. Japanese Kaizen: "Kai" means change", and "zen" means "good".It refers to the practice of looking for ways to improve work and processes on a regular basis. CHANGE May be small, incremental changes rather that large changes
5. Lean Principle-Establish Pull: Pull manufacturing system allows for Just-in-time delivery. In pull system, each station takes the product of the previous site according to its needs,it results final operations is done based on customer demand.It is always created from the needs of the end customers.
6. Total preventive maintenance and multi-talented employees:TPM gives employees a sense of responsibility and awareness of the equipment they have been using. It is an approach that places the responsibility for routine maintenance on the workers who operate the machinery, rather than employing separate maintenance personnel for that function..

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