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Discuss the impact of capacity planning when trying to implement JIT

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Discuss the impact of capacity planning when trying to implement JIT
Question 3 A – Discuss the impact of capacity planning when trying to implement JIT
Aylesbury pressing has been in business for over a century so their way of working and their pricniples followed with regard to manufacturing has always been creating buffer stock at every stage at their production area and their assembly only starts when all various products have accumalted and at the moment normal manufacturing lead times is 6-8 weeks. Implementing JIT is going to be a problem because at the moment people have set job functions and the JIT procedures and disciplines wants people to multi task and states team measurements will be done instead of individual performance, JIT needs a demand for work but at the moment AP is just producing and because of sales increasing they need a proper system in place or the business will not be able to satisfy customer demands.
Capacity is calculated: (number of machines or workers) × (number of shifts) × (utilization) × (efficiency) and works in harmony with JIT, managing lead times and eliminating waste. Implementing a JIT system requires management to consider issues of worker stress, cooperation and trust among workers and management, and reward systems and labor classifications. In a JIT system, workers must meet specified cycle times and workers feel pushed and stressed, causing productivity losses or quality reductions and due to AP staff mindset been on doing a single activity per person it is going to take a lot of time for proper implementation. Workers at AP might feel that they have lost some autonomy because of the close linkages in materials flows between stations with little or no safety stocks due to elimination of waste through capacity planning.The fluctuation of demand creates problems regarding the procurement of resources to meet the customer demand and due to AP merely keeping up with demand JIT is going to be difficult to implement within a short period as capacity decisions are strategic in nature and is

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