Operations Management -JIT

Question 1

What is JIT? Just in time inventory control

Answer 1

Is the aim to avoid holding high inventory levels by ordering supplies just as they are required for production process and completed products only produced when ordered.

Easy to understand however hard to put in practice

For example JIt principles

Question 2

what are the JIT principles?

Answer 2

1. Estabilize excellent relationships with suppliers
2. Have multi skilled staff working and who are prepared to change jobs at short notice
3. Improved equipment and machinery
4. Accurate demand forecasts

Question 3

Advantages of JIT?

Answer 3

1. Capital invested and opportunity costs are reduced
2. More storage space and reduced storage costs
3. Outdated- reduced chances as produced tá are not being held so much
4. More staff that are multi skilled- trained- motivated and flexible

Question 4

Disadvantages of JIT

Answer 4

1. Delivery costs increase and bulk discounts decrease too as small deliveries
2. Order of administration costs increase because more small order shall have to be delivered and planned
3. Reputation of products depend mostly on external being suppliers

4 expensive production delay- if a problem occurs with supplying company