JIT manufacturing and inventory control system Essay example -- GCSE B

JITJust-in-time production is considered to be on the leading edge of technological advancement. With improvements in the virtu entirelyy every industry, maintaining an effective production annotation while minimizing inventorying costs is a very feasible option. Just-in-time systems are designed to keep inventory costs at a minimum, unlike the slipway of old, with large warehouses loaded with back inventory. With technology allowing instantaneous communication around the world, production lines and stores do not have to wait for days for inventory delivery. It post happen, well, just-in-time. Many companies are on the verge of switching to a just-in-time inventory system, to compliment the millions of companies that have already implemented the system. It is generally recognized that effective murder of just-in-time will result in a significant reduction of inventories. As a matter of fact, inventory levels are key indicators for measuring just-in-time performance (Harrison). T he just-in-time philosophical system on inventory management is simple - Strive for a level of zero inventories. - Produce items at the rate required by the customer. - Eliminate all unnecessary lead times. - Reduce setup costs to achieve the smallest economical lot size - ideally, a quantity of one. - Optimize strong flow from suppliers done the production process to the point of sale of the finished product, so that inventories are minimized. - Ensure high quality and dependable just-in-time delivery from suppliers. - Implement a essence Quality Control (TQC) program, which will minimize scrap, rework and resultant delays in production (Naylor). While the just-in-time inventory management philosophy is simple, execution is not. In a just-in-time environment, the supplier should deliver raw materials and other purchased items when they are needed. A blanket purchase order or other suitable form of basic musical arrangement should cover the terms and conditions for procurement. Delivery of the item should be direct to the point of use in the manufacturing plant. It is time consuming and not cost-effective for the materials to be handled in one part of a production line before it is moved to the correct location. It is up to the supplier to ensure a smooth flow of material to support production, which is obtained through optimum communication and coordination between the manufacturing plant and the supp... .... - Authorize individuals in production to release vendor delivery quantities against blanket purchase orders, get agreement, or contract. - Establish inventory policy code for each item based on the method of inventory control and the method of transaction account and recording. - Review and establish minimum economical order quantities and safety stocks required by just-in-time production. - Measure inventory performance to determine effectiveness of just-in-time production and inventory management (Naylor). Just-in-time will change our conventio nal thinking concerning the management of inventories and streamline our methods for inventory control. Proper selection and implementation of these methods will yield substantial benefits by improving customer service, shortening delivery lead times, and significantly reducing inventory investment. It does not, however, eliminate the need for sound inventory planning. BibliographySlack, Chambers, Harland, Harrison and Johnston, trading operations Management, New York Pitman, 1995 Naylor J, Operations Management, New York Pitman, 1996 Harrison A, Just-in-time Manufacturing in Perspective, New York Prentice Hall, 1992