In: Operations Management
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In Chapter 11 of Operations Management, Authors Vonderembse & White (2013), share with the readers many facts on the inventory production system known as Just-in-Time (JIT). This system is widely used in assembly line work, where the many tasks are accomplished in a continuous flow and the inventory is kept at a minimum with little or no waste. Lean process is part of the JIT process where the many steps of production are reviewed and combined or eliminated with results of production times being faster with same turnout of a quality product for the customer. The components of JIT are generating flow, simplified process flow, uncovering problems in inventory, emphasis on quality, and eliminating waste the best a company structure can do so. The steps are to be precise and conducted in a fast turnaround time as customers expect the product in a timely manner for the supply and demand of product has a direct correlation on how much a customer purchases of a product.
The process is commonly see in the automotive industry as they are production line structured. I have seen the process in replacement parts also, the packaging of small parts in the plastic bags then in placed in box of item, motors, book shelves, TV Stands are all examples of JIT. Other business I have seen with this structure are also production lines in baking/dry goods – General Mills, Amazon, and yes even the coffee maker Starbucks are in the JIT – lean business operations. As for business this would be totally inappropriate, I think of the emergency hospital visit. A hospital has to have the right amount of people and technology (machines) for assistance of an ill person, the personal touch needed for each case cannot be rushed, as a critical diagnosis may be overlooked. Stock of medications/supplies are needed for more than a week or two, as a disaster in area (such as a tornado) may result in a large number of people in the hospital at one time Yes there is a process in place at the hospital to assist the most people as they can; however, in JIT system, it is not about the person’s well-being, it’s about the numbers while maintaining quality.
My Response to the above essay:
The just-in-time procurement program (JIT) is a distribution technique that explicitly aligns manufacturers' raw-material orders with output schedules. Companies employ this procurement technique to improve productivity and minimize pollution by just obtaining products when they require them for the manufacturing phase, which reduces the expense of inventories. This method requires that the producers accurately forecast demand. In comparison to just-in-case methods, the JIT distribution method retains ample inventories to provide adequate stock to meet full consumer demand. Kanban is a scheduling method which is mostly used in combination with JIT to prevent machine overcapacity. JIT manufacturing process performance depends on stable production, high-quality workmanship, no system breakdowns and trustworthy suppliers. One example of a JIT inventory network is a car maker that works at low inventory levels but depends heavily on its supply chain to produce, when required, the parts it needs for the production of vehicles. The manufacturer therefore orders the parts required to assemble the cars, only after receiving an order. To be competitive in JIT manufacturing, businesses must have steady production, high-quality workmanship, glitch-free machinery for plants.