Mid Term Exam
1. Discuss how just-in-time manufacturing might affect a Job Shop (Consider both positive and negative impacts on both internal and external operations).
Just-In-Time (JIT) manufacturing may affect a Job Shop both positively and negatively. The most important affect is that it improves the performance of job shop production. JIT also eliminates waste and/or decreases work in progress (WIP) in that same sense. JIT allows for products that are produced to fulfill an immediate demand for them. JIT emphasizes on quality. Quality is very important in JIT manufacturing because it decreases or eliminates costs and increases profits by producing high quality products the first time around. JIT allows for quality products to be transformed from raw materials into finished goods as expediently and efficiently as possible without delay.
Some of the negative affects are unskilled or untrained workers. They may not make quality products because they are not trained properly or often. It may affect external operations by promoting competitive bidding between vendors to provide needed inventory. Sometimes this can cause friction between long-standing vendors and the company when they’re out bid by another vendor. It can tarnish the business relationship.
2. You operate a dairy farm, raising cows for the production of raw milk products. Briefly identify the levels of vertical integration that you would anticipate being possible for such an operation (include both backward and forward integration in your response).
Operating a dairy farm, raising cows, would be a very challenging business to conduct. The competition for market share is outrageous. One level of vertical integration that I would anticipate is to possibly setup my own distribution center. I would face some challenges because I’d have to hire workers with this type of expertise, along with the knowledge of farming. Though I’d have to invest...