JIT manufacturing and inventory control system Essay example -- GCSE B

JITJust-in-time ware is considered to be on the covering abut of technological advancement. With improvements in the virtually every industry, maintaining an effective mathematical product preeminence while minimizing register costs is a very feasible option. Just-in-time systems atomic number 18 designed to keep inventory costs at a minimum, irrelevant the ways of old, with large wargonhouses loaded with back inventory. With technology allowing instantaneous parley around the world, production lines and stores do not have to wait for days for inventory delivery. It can happen, well, just-in-time. Many companies are on the verge of fracture to a just-in-time inventory system, to compliment the millions of companies that have already implemented the system. It is largely recognized that effective implementation of just-in-time will result in a significant reduction of inventories. As a matter of fact, inventory levels are key indicators for measuring just-in-time per conve ntionance (Harrison). The just-in-time philosophy on inventory trouble is simple - Strive for a level of zero inventories. - Produce items at the rate required by the customer. - Eliminate all unnecessary lead times. - Reduce setup costs to achieve the smallest economical lot sizing - ideally, a quantity of one. - Optimize material flow from suppliers through the production process to the point of sale of the finished product, so that inventories are minimized. - discover high quality and dependable just-in-time delivery from suppliers. - Implement a amount Quality Control (TQC) program, which will minimize scrap, rework and resultant delays in production (Naylor). While the just-in-time inventory management philosophy is simple, execution is not. In a just-in-time environment, the supplier should deliver raw materials and other purchased items when they are needed. A blanket purchase order or other suitable form of basic agreement should cover the terms and conditions for procur ement. Delivery of the item should be direct to the point of use in the manufacturing plant. It is time consuming and not cost-effective for the materials to be handled in one part of a production line before it is moved to the correct location. It is up to the supplier to find a smooth flow of material to support production, which is obtained through optimum communication and coordination between the manufacturing plant and the supp... .... - Authorize individuals in production to incommode vendor delivery quantities against blanket purchase orders, purchasing agreement, or contract. - gear up inventory policy code for each item based on the method of inventory control and the method of transaction reporting and recording. - check up on and establish minimum economical order quantities and safety stocks required by just-in-time production. - Measure inventory performance to determine effectiveness of just-in-time production and inventory management (Naylor). Just-in-time will change our conventional thinking concerning the management of inventories and contour our methods for inventory control. Proper selection and implementation of these methods will yield true benefits by improving customer service, shortening delivery lead times, and importantly reducing inventory investment. It does not, however, eliminate the need for sound inventory planning. BibliographySlack, Chambers, Harland, Harrison and Johnston, trading operations Management, New York Pitman, 1995 Naylor J, Operations Management, New York Pitman, 1996 Harrison A, Just-in-time Manufacturing in Perspective, New York Prentice Hall, 1992