Just In Time

Question 1

Just In Time Definition

Answer 1

A management strategy that aligns raw-material orders from suppliers directly with production schedules.

Question 2

Types of Waste (x3)

Answer 2

• Overproduction
• Waiting time
• Defect

Question 3

Just In Time Requirements (x4)

Answer 3

• Good supplier relations
• Committed, skilled and motivated employees.
• Quality-assurance-based culture
• Trust between employees and management

Question 4

Benefits of Just In Time (x4)

Answer 4

• Lower stock holding means a reduction in storage space required and saves on rent and insurance
• Less working capital is tied up in stock as it is only bought when it’s needed
• Less chance for stock to become obsolete
• Less time spent on checking and reworking production as the emphasis is on getting the work right first time

Question 5

Drawbacks of Just in Time (x4)

Answer 5

• Little room for mistakes as minimal stock is kept for reworking faulty produce
• Production is high reliant on suppliers if stock is not delivered on time, the whole production schedule is delayed
• No spare finished produce available to meet unexpected orders because all produce is set for specific orders
• Hyper-specific scheduling and stock management is required for the process to work.