Stock control 3

Question 1

What is just on time?

Answer 1

• the attempt to operate with zero buffer stock
• buy the stock in time
• system must be in place so that the costs and risks of running out of stock are avoided by the firm

Question 2

What are the advantages of just in time?

Answer 2

• less likelihood of stock becoming obsolete
• continuous quality improvement
• improve storage space used
• Improve supplier relations

Question 3

What are the disadvantages of just in time?

Answer 3

• supplier delay = production slowing/stopping
• no bulk buying
• inc delivery and supply cost = smaller but often order

Question 4

What is lean production? And what elements does it try to get rid off?

Answer 4

Lean production aims to produce more using less by eliminating all forms of waste, whilst ensuring quality

• anything that does not add value to the final product
• minimising the use of materials, capital, floor space and time

Question 5

What are the advantages of lean production?

Answer 5

• creates higher levels of labour productivity
• requires less stock, less factory space and less capital equipment than a mass producer of comparable sizes, therefore lean has a cost advantage
• results in fewer defects, improving quality and reliability for the customer
• lean requires fewer engineering hours to develop a new product, speedy develop a wide range of new products

Question 6

what are the 3 methods of lean production?

Answer 6

• just in time
• quality assurance and total quality management (TQM)
• continuous improvement (kaizen)