Jit Management
Supply Chain Management is a term used to describe the relationship that exists between an organisation and its network of suppliers and buyers. Just-In-Time (JIT) management is the ability of an organisation to integrate its systems and processes with that of the supply network. Describe a supply chain where this occurs and discuss the challenges and benefits of the JIT methodology.
A Just -In -Time System is a system which organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles. (Larry P. Ritzman)
The main purpose of a just in time system is to eliminate through improvement activities various kinds of waste lying concealed within a company. During periods of slow growth the Toyota production system which was developed by Toyota Motor Corporation could actually make some form of profit by reducing costs and eliminating excessive inventory and getting rid of excessive staff. (Yasuhiro Monden, 1994).
As mentioned above JIT main purpose is to eliminate waste and to effectively increase their profit levels. The table below shows the types of waste which Just in Time Production aims to solve and thus make the company more efficient in reducing waste and eliminate unnecessary capacity. * Transportation | * Over Excessive movement and material handling of product through transporting from a large distance, this can cause damage and deterioration of the product. Companies such as “Wall-Mart” have close supplier ties in which there are very short transportation times to deliver their stock eliminating this wastage. | * Overproduction | * Over Producing a piece of item, this will create unnecessary costs in storing the product, furthermore if demand for the overall product falls and this product isn’t sold it is considered to be a waste of money creating a unnecessary cost. | * Inappropriate Processing | * Using expensive equipment which is not needed to produce a simple
A Just -In -Time System is a system which organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles. (Larry P. Ritzman)
The main purpose of a just in time system is to eliminate through improvement activities various kinds of waste lying concealed within a company. During periods of slow growth the Toyota production system which was developed by Toyota Motor Corporation could actually make some form of profit by reducing costs and eliminating excessive inventory and getting rid of excessive staff. (Yasuhiro Monden, 1994).
As mentioned above JIT main purpose is to eliminate waste and to effectively increase their profit levels. The table below shows the types of waste which Just in Time Production aims to solve and thus make the company more efficient in reducing waste and eliminate unnecessary capacity. * Transportation | * Over Excessive movement and material handling of product through transporting from a large distance, this can cause damage and deterioration of the product. Companies such as “Wall-Mart” have close supplier ties in which there are very short transportation times to deliver their stock eliminating this wastage. | * Overproduction | * Over Producing a piece of item, this will create unnecessary costs in storing the product, furthermore if demand for the overall product falls and this product isn’t sold it is considered to be a waste of money creating a unnecessary cost. | * Inappropriate Processing | * Using expensive equipment which is not needed to produce a simple
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