Which three characteristics are essential for a jit system to function properly?
Smooth production flowOne of the key features of the JIT system is a uniform production process. From the arrival of materials from suppliers to the delivery of goods to customers, the JIT system aims to prevent fluctuating production rates, which can result in delays and excess work-in- process inventories. Show
Pull-methodThe pull-method contributes to this smooth production process, and it is a key feature of the JIT system. Under the pull-method, goods are produced in each stage only as they are needed at the next stage. This system eliminates work-in-process inventory between production steps, thereby reducing waiting times and associated non-value-added costs. The pull-method also prevents wastage due to the production of defective products, since the output at every stage of production is inspected before passing on to the next stage.
Reduction in storage and waiting timeUnder the JIT system, materials are purchased and goods produced only as required, rather than to build up stocks for future use. This alleviates the need to make space for holding products and materials, and results in less time wasted waiting for large amounts of materials and products. Relatedly, the JIT system encourages faster setups of production machinery. Producing small lots of product only as required demands a faster set up of machinery, resulting in more efficiency and reduced costs. The result is higher quality raw materials and finished products. Maintenance of equipmentThe JIT system requires strict adherence to routine maintenance schedules. Effective, preventive maintenance of equipment will allow the company to avoid costly down time from machine breakdowns. Employee satisfaction and stronger relationshipsThe JIT system also encourages multi-skilled workers, flexible facilities and an atmosphere of teamwork. These things improve the production system to help the company maintain a competitive edge by seeking ways to improve its products, achieve more efficient operations, and eliminate non-value-added costs. The JIT system also encourages stronger relationships between suppliers and producers. Under the JIT system, communication and information flow between the supplier and producer are open, supporting strong supply coordination. These relationships are enhanced by long-term contracts. Automated purchasingUnder the JIT system, if materials are required, the supplier will receive an electronic message to deliver them. This improves efficiency and reduces time wastage. Automated purchasing also means that existing inventory levels and production levels are calculated automatically, making things easier and more efficient. Reliable vendorsUnder the JIT approach, suppliers are limited. This reduces the amount of time spent on vendor relations, and ensures that the firm is working with only reliable suppliers who can deliver high quality goods on time. Long-term benefits of a JIT systemA long-term concentration on production growth and supply requirements, and synchronizing changes in raw materials specifications with suppliers, provide many long-term benefits to the business. The JIT system can produce long-term benefits like cost savings, lower production costs and better customer satisfaction. Why is information so important in supply chains? What are the inherent challenges to the successful development and implementation of effective information? Information is crucial to the performance of a supply chain because it provides the basis on which supply chain managers make decisions. Information technology consists of the tools used to gain awareness of information, analyze this information, and execute on it to improve the performance of the supply chain. Information is essential to making good supply chain decisions because it provides the broad view needed to make optimal decisions. IT provides the tools to gather this information and analyze it to make the best supply chain decisions (Chopra & Meindl, 2013). Information is a key supply chain driver because it serves as the glue that allows the other supply chain drivers to work together to create an integrated, coordinated supply chain. Information is crucial to supply chain performance because it provides the foundation on which supply chain processes execute transactions and managers make decisions. Without information, a manager cannot know what customers want, how much inventory is in stock, and when more products should be produced or shipped. In short, information provides supply chain visibility, allowing managers to make decisions to improve the supply chain’s performance (Chopra & Meindl, 2013). Using IT systems to capture and analyze information can have a significant impact on a firm’s performance. Availability and analysis of information to drive decision-making is key to the success of a supply chain. To support effective supply chain decisions, information must have the following characteristics: Information must be accurate, must be accessible promptly, must be of the right kind, and must be shared (Chopra & Meindl, 2013). In summary, information is crucial to making good supply chain decisions at all three levels of decision making (strategy, planning, and operations) and in each of the other supply chain drivers (facilities, inventory, transportation, sourcing, and pricing). Information Technology enables not only the gathering of these data to create supply chain visibility but also the analysis of these data so that the supply chain decisions made will maximize profitability (Chopra & Meindl, 2013). The inherent challenges to the successful development and implementation of effective information are the sharing of information along supply chains and the discipline to ensure the integrity of the data collected, (Coyle, Langley, Novack & Gibson, 2013). The information and communication systems that are available to organizations today lead to the collection and storage of vast amounts of data, but some organizations may not be taking advantage of the abundance of data to develop information systems to improve decision-making. The accumulation and storage of data are almost useless unless the data are shared horizontally and vertically in the supply chain and used to make better decisions about inventory, customer services, transportation, and so forth. Information can be a powerful tool if it is timely, accurate, managed, and shared, (Coyle, Langley, Novack & Gibson, 2013). Bring it all together Every day, organizations in all sizes have a large amount of data compiling into their systems, raw data will not make much sense without proper analysis. I believe that the most challenging part is how to make use of those data? How to make raw data meaningful and understandable in a business sense to decision-makers? How to derive the inherent insights from those data? Although it is both art and science in doing so, I believe that it requires commonsense, analytical skills, carefully think of the background of your audiences, using the right tools and of course, maintain integrity. I would love to hear your thoughts on the subject. What else do you do to ensure data integrity and purposely well serve the organizations and audiences? Thank you. Jit About the author Jit Hinchman, M.Eng, M.Sc, CSCP, CLSS is an inspiring Supply Chain Adviser™️, creative problem solver, stabilizer agent with the ability to bring a sense of continuous accountability for achievement. Reference Chopra, S. & Meindl, P. (2013). Supply Chain Management – Strategy, Planning, and Operation. (5th Edition). New Jersey: Pearson Education, Inc. Coyle, J., Langley, C., Novack, R. & Gibson, B. (2013). Supply Chain Management - A Logistics Perspective. (9th Edition). United States of America: South-Western, Cengage Learning. Which three items are considered inputs to the transformation process?Often all three types of input – materials, information and customers – are transformed by the same organisation.
Which of the following reflects the degree to which a good or service meets the demands and requirements of customers?Customer satisfaction (CSAT) is a measure of how well a company's products, services, and overall customer experience meet customer expectations.
Which inventory management technique utilizes a master production schedule a bill of materials and an inventory status file?MRP uses information from the bill of materials (BOM), inventory data and the master production schedule to calculate the required materials and when they will be needed during the manufacturing process.
Which of the following is true about control over variability of resources between manufacturers and service organizations multiple choice question?Which of the following is true about control over variability of resources between manufacturers and service organizations? Manufacturers typically have more control over variability of resources than does a service provider.
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