Just in Time Essay

1623 Words Sep 11th, 2014 7 Pages
JUST IN TIME (JIT)

ADVANTAGES OF JIT 1) Lower stock holding
All manufacturing units aim at one thing, which is to minimize the expenditure that related to the ordering and carrying out inventory. The company should order only that much inventory, no more no less or hold no inventory which is needed to carry on their immediate production. So the company should not store any extra inventory that is needed in the production since it will incur an additional carrying cost. As soon as goods are finished, it should be shipped to the customer immediately without any delay in order to minimize the warehouse costs where the goods are placed. 2) Better customer satisfaction
Implementing the Just-in-Time inventory management model can
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Producing more than required will lead to the excess inventory, excess storage space, and unnecessary handling cost by workers and equipment.

iii. Waiting: Time not being used effectively is a waste. Whenever goods are not moving or being processed, the waste of waiting occurs. Waste of waiting occur when the company waiting for a breakdown to be resolved, waiting for previous process to complete, and also waiting for the raw materials to arrive.

iv. Transportation: The waste of transport I relate to the movement of products from one location to another. In Toyota Production System (TPS), we can see that many of their suppliers are located close to their plants. When the product does not ship at a huge distance, it will cut the cost of damage or obsolete product and it will arrive at the destination as soon as possible.

v. Movement: Waste of movement is any motion of man or equipment that does not add any value to the product or service. Poor workstation layout, large batch size, poor method design to lifting one component to another is a problem for organization since it required excessive walking or motion.

vi. Inappropriate processing: Inappropriate processing involves unnecessary processing or a procedure that does not add a value to the product. Product should be manufactured correctly the first time. If it does not manufactured correctly it will lead to the inappropriate processing.

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