Question

Why does just-in-time emphasize product-oriented layout, whereas traditional manufacturing disregards setup time as an improvement priority?

Answer 1

Just In Time (JIT) is an inventory system in which inventory is purchased only and when required. There is no stocking of inventory. Both production and purchase are based on the expected demand. So there is very little time available for mistakes or unnecessary movements. So the lead time should be less for JIT. To reduce Lead time, setup time should be reduced (Because if setup time is higher, batch size will be higher, making larger inventory and longer ead times.) To make this possible the inflow of factors and production factors should be perfectly kept in place. One of this production factor is product orientation layout, by emphasizing on product layout the management will make a layout that minimizes the movement and thus giving more products and reducing setup time. However traditional manufacturing diregards setup time as an improvement priority because it does not prioratize lead time reduction.