JIT Flashcards
1
Q
Define JIT
A
It tries to ensure that parts, raw materials and components are received and products are made only when there is demand for the parts and products.
2
Q
What does JIT focus on ?
A
- Supplier relationships
- Customer relationships
- Employee Involvement
- Kanban
- Management understanding
3
Q
Advantages of JIT
A
- improves cash flow as very little stock is held
- waste is reduced as no obsolete or damaged stocks occur
- factory space can be freed up for more productive use
- costs of stock holding are radically reduced
- links with and the control of suppliers
are improved, leading to better quality of components supplied - motivation is improved as workers are given greater responsibility and encouraged to work in teams (as part of the lean production process).
4
Q
Disadvantages of JIT
A
- a lot depends on the reliability and flexibility of suppliers
- ordering and administration costs are likely to rise
- bulk buying advantages may be lost
- difficult to cope with sharp, unexpected increases in demand
- reputation can be damaged if customers are let down by late deliveries as no buffer stocks are
held
-extra pressure on staff because of additional responsibility associated with a JIT system - unforeseen interruptions in supply.
