Just in time production

Question 1

What is just in time production

Answer 1

Just in time production is a stock management system that is focused on reducing all the level of raw materials and finished products held by the business.

Question 2

What type of form is just in time production

Answer 2

Just in time production is a form of lean production

Question 3

What does just in time production involve

Answer 3

Making products to order

Only ordering sufficient supplies to fulfil the orders that have already been made

Required to building excellent relationships and and strong communications with the suppliers (The suppliers are the only reason this works, so you need to build a good relationship with them)

Insuring the manufacturing process and finished goods are of the highest quality

Question 4

Advantages to just in time production

Answer 4

Reduced storage and security costs

Requires the development of long term supplier relationships

Less chances of stock becoming obsolete or out of date

Products can be customised to each order

Question 5

Disadvantages to just in time (JIT) production

Answer 5

Reduces the ability to respond to unforeseen changes in demand

Relies on suppliers - need to maintain relationships

Damage to brand if can’t meet customer orders

Little time to correct mistakes

Customer may experience a waiting time