JIT Stock Control No buffer stocks, components arrive when needed Supplier relationships have to be...
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Transcript of JIT Stock Control No buffer stocks, components arrive when needed Supplier relationships have to be...
JIT Stock Control• No buffer stocks , components arrive when
needed• Supplier relationships have to be excellent • Production staff must be multi-skilled and
ready to change jobs • Equipment must be flexible
• Demand forecasts must be accurate • Latest IT equipment required
• Good employer-employee relationships• Quality = Priority.
Advantages
• Less capital , lower op cost
• Lower costs
• Less chances of stock becoming obsolete
• Staff motivation
• Quicker response time through systems
Disadvantages
• Supply failure = System Breakdown
• Higher delivery costs ( small deliveries )
• Order admin costs
• Lower bulk discounts
• Reliance on outsiders .
Lean Production• Lean manufacturing or lean production, is
the optimal way of producing goods through the removal of waste and implementing flow,
as opposed to batch and queue .
• Quality output with fewer resources .
Simultaneous Engineering
• R&D done simultaneously for new products.
• New products arrive faster eliminating the danger of
obsolesce • Unlike sequential engineering .
Flexible Specialisms• Technology + Changing consumer tastes make
very short production runs • Quick changes require :
• Flexible Work Contracts • Flexible machinery• Flexible Workers
• This leads to quicker response times , wider ranges , reduced stock holdings and increases in
productivity .• This is also called time based management .
Kaizen• Continuous Improvement• All workers contribute• Managers DO NOT know best in all
cases• Small makes big • Management culture promotes
worker involvement • Quality cells that are empowered • All staff are involved
Evaluating Kaizen• Its limitations include :
• Senior mangers may resist
• Short term tangible costs
• Important advances made only early on
• Some proposed changes may require a complete overhaul and so may be expensive