10.1 Just-in-Time Inventory and Lean Resource Management Flashcards
Just-in-time (JIT) manufacturing practices are based in part on the belief that
A. Attempting to reduce inventory to a consistently low level can lead to “panic” situations.
B. Beefed-up internal control in the central warehouse can greatly enhance productivity in the production areas.
C. High inventory levels provide greater flexibility in production scheduling.
D. Goods should be “pulled” through the production process, not “pushed.”
D. Goods should be “pulled” through the production process, not “pushed.”
JIT manufacturing is a pull system; items are pulled through production by current demand, not pushed through by anticipated demand as in traditional manufacturing setups.
Which one of the following is not an expected benefit of implementing a just-in-time (JIT) production system?
A. Lower manufacturing lead time
B. Lower total rework cost
C. Lower total setup costs
D. Lower total storage costs
C. Lower total setup costs
Production setup costs and times per lot are reduced by a JIT production system. However, because smaller lots are used, total setup costs are not necessarily lower using a JIT production system.
All of the following are benefits of just-in-time manufacturing except that it
A. Allows for minor defects without shutting down operations.
B. Helps produce a higher-quality product in less time.
C. Can significantly reduce inventory.
D. Helps eliminate rework costs.
A. Allows for minor defects without shutting down operations.
Since there is no safety stock with a JIT system, minor defects will immediately halt production.
The focus of quality control under JIT shifts from the discovery of defective parts to the prevention of quality problems, so zero machine breakdowns (achieved through preventive maintenance) and zero defects are ultimate goals. Thus, one benefit of a JIT system is it helps eliminate rework costs.
Lean manufacturing is characterized by which principle?
A. Identifying processes that add value and processes that do not add value.
B. Restricting authority to make manufacturing decisions to top management.
C. Maximizing production efficiency initiated by the push of forecasted demand.
D. Focusing exclusively on reducing costs by using the minimum number of employees.
A. Identifying processes that add value and processes that do not add value.
Lean manufacturing principles are (1) value, (2) value stream, (3) flow and pull, (4) empowerment, and (5) perfection. Value identifies features that are valuable to the customer. Value stream identifies processes that add value and removing (if possible) those that do not.
