BUSS211 OM Lecture 4 Lean Operations MRP vs. JIT Professor Kihoon Kim Lean Operations Slide 1 Outline Independent demand vs. dependent demand MRP (Push) vs. JIT (Pull) How MRP works? How JIT works? Lean Operations Tactics Lean Operations Slide 2 Independent vs. Dependent Demand Independent Dependent 1. End or finished items 1. Subassemblies‚ Components/Materials 2. May be uniform demand 2. Lumpy demand 3. Few items - carefully monitored 3. Many items – less emphasis
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Just In Time (JIT) Introduction JIT is system whether company starts manufacturing/purchasing once the customer orders the good effectively making zero inventories. In other words‚ in a JIT environment materials are purchased and produced as and when it is needed. The whole idea is based on the phrase provide the goods just in time as promised when the order is placed by the customer. The opposite of the JIT production is known as JIC (Just in case) system where it produces goods for inventory
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Time (JIT) Manufacturing System is a Mile Stone Shirajul Islam M. Phil Researcher‚ Jahangirnagar University‚ Savar‚ Dhaka Abstract This article explains how a firm manages her inventory to gain minimum production cost and earn business success by using JIT (Just in Time) Manufacturing System. It provides a mathematical framework to understand the performance of a farm‚ and argues that inventory cost minimization method is an approach that helps a farm to be competitive and successful. JIT inventory
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be eliminated using JIT Ans. Just in Time (JIT) is a management philosophy aimed at eliminating waste and continuously improving quality. Credit for developing JIT as a management strategy goes to Toyota. Toyota JIT manufacturing started in the aftermath of World War II. Although the history of JIT traces back to Henry Ford who applied Just in Time principles to manage inventory in the Ford Automobile Company during the early part of the 20th Century‚ the origins of the JIT as a management strategy
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greatest concern for the Sunwind in the present scenario. * The trend of the major manufacturers like Toyota who are working on “Less” suppliers’ model to increase the efficiency is of a big threat as Volvo might even persuade it. * The system of JIT which is being implemented recently by the Volvo group‚ the Belgian manufacturer is
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globalization. It’s main line of business is hamburgers. It primarily sells cheeseburgers‚ hamburgers‚ French fries‚ chicken products‚ ice-creams and soft drinks. Inventory management in McDonalds: McDonalds follows a Just in Time (JIT) system of inventory management. JIT‚ as the name suggests‚ is the system of supplying products to customers as soon as they have ordered for it‚ with minimal delay between placing the order and getting it in hand. McDonalds doesn’t begin to cook or assemble or preheat
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Action 6 Performance Measurement 6 Inventory Management 7 Considerations in Transitioning to a (Total) JIT System 8 Recommendations 8 Short-term 8 Long-term 12 References 13 Appendix 17 Appendix A: A: Traditional Performance Measures (Financial Objectives) 17 Appendix B: Non-Traditional Performance Measures 18 EXECUTIVE SUMMARY Introduction: Draper Instruments (DI) is adopting a JIT system. Currently‚ the company is facing inventory and quality control issues and employees are not acting
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Supply chain managers outsource logistics to meet three goals: Drive down inventory investment‚ lower delivery costs‚ and improve delivery reliability and speed. What is transferring a firm’s activities that have traditionally been internal to external suppliers? Outsourcing A supply chain ends with A satisfied customer The advantage of having few suppliers is to Form a long-term relationship Which negotiation strategy bases price on a published‚ auction‚ or index price? Market-based price
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of inventory systems. For example‚ just in time (JIT) is a strategic inventory system implemented to improve the return on investment by reducing in-process inventory and the costs associated. JIT is driven by a series of signals that tell the production processes to make the next part. When implemented correctly‚ JIT can lead to dramatic improvements in a manufacturing organization ’s return on investment‚ quality‚ and efficiency. Furthermore‚ JIT is an attitude of continuous progress in which non-value-adding
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to survive‚ the most important aspect is about how far the company may is willing to improve on its productivity. For this purpose the implementation of JIT may be considered as the most important aspect. Thus the quality may be improved in a minimal time frame without any additional cost of labor and a lesser chances of wastage. The system of JIT became popular since 1980 ’s due to the Japanese firms continuously implementing for improving productivity. � [Just In Time 3] Just In Time _Introduction_
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