Week 9 Flashcards
Describe JIT production.
JIT is a “demand-pull” system where each production component is produced only when needed by the next step, minimizing excess inventory.
What is the primary goal of Just-in-Time (JIT) production?
To streamline the production process by eliminating non-value-added activities, meeting customer demands in a timely way, ensuring high-quality products, and minimizing costs.
How does JIT differ from materials requirements planning (MRP)?
JIT is a demand-pull system focused on producing items only when needed, while MRP is a push-through system that produces goods based on forecasted demand.
What is JIT purchasing?
JIT purchasing is acquiring materials just in time for production, reducing inventory carrying costs and relying on electronic links to place orders.
Name some key features of a JIT production system.
Features include high-quality standards, cross-trained employees, manufacturing cells, reduced setup times, and a focus on eliminating defects.
List advantages of JIT production.
Lower inventory costs, improved cash flow, reduced obsolescence, increased customization, better quality, and stronger supply chain collaboration.
What are some disadvantages of JIT production?
Disadvantages include dependency on suppliers, vulnerability to demand surges, higher administration costs, potential for stock-outs, and increased training and technology costs.
Why is supplier reliability critical in a JIT system?
JIT relies on timely, high-quality supplies; any delay or quality issue from suppliers can disrupt the production process, leading to costly delays.