Jit: Just In Time Manufacturing Essay

581 words - 3 pages

Just-In-Time is the practice that requires the consumption of resources at the last possible moment relative to production for customer demand. This requires the elimination of all waste - all the non-value added activities that take place in the total manufacturing, distribution and purchasing processes.The emphasis of a J-I-T program is on minimization of warehousing costs/reduced inventories, frequent shipments and short delivery lead times. Management must adopt a method of inventory control which features high inventory turns and low safety stocks. This is just the opposite of a conventional system where inventory is stockpiled.The introduction of Just-In-Time manufacturing has provided many benefits including a base for an increase in annual turnover, halving of inventory, a cut in lead time from weeks to days, a drop in labor turnover, and a reduction ...view middle of the document...

J-I-T also reduces quality problems when workers and managers continually are assessing processes, methods and materials for their value contribution to the firm's product line. Quality can be accomplished by a reduction of inventory levels to cause problems to surface in the organization; reduce purchase order quantities and production lot sizes. Once problems are detected, they can be solved. The result is a smoother running organization with less inventory investment and better quality product.Moreover, the optimal quality and cost relationship is important. The organization should focus on zero-defect production process. Although it seems to be unrealistic in the long run, it will eliminate a huge amount of resources and effort in inspecting, and reworking defected goods.Just-In-Time's implications for global operations management are driving business towards globalization and creating new revenue opportunities and making scale economies and cross-border arbitrage essential to staying competitive. Yet, the advantages of globalization are not easy to capture due to increased supply-chain complexity driven by the increased number of cross-border constraints and sheer increase in scale of global operations. Global operations heighten business complexity and crises, including greater variety of customer needs; more competitors; distributed organizations; shift to customer-driven/just-in-time production cycles; and mass-customization complexity.Global businesses need communications beyond their plants and warehouses with customers' transportation providers, suppliers, government agencies and customer service providers. Such is the case with the Chrysler experience. With good business practices and relationships established through the J-I-T transportation provider, Canadian Pacific Railway Company, they were able to revert to a "shuttle plan" for delivering goods via the tunnel if the Ambassador Bridge where to become inaccessible.

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