Exhibit 17.3 Example JIT Characteristics and Best Practices . Setup/changeover t

Question

Exhibit 17.3 Example JIT Characteristics and Best Practices . Setup/changeover time minimized . Excellent preventive maintenance . Mistake-proof job and process design . Stable, level, repetitive master production schedule . Phantom bill of materials with zero lead time . Fast processing times . Clean and uncluttered workspaces . Very little inventory to hide problems and inefficiencies . Use production cells with no wasted motion . Small repetitive order/lot sizes . Minimize the number of parts/items . Minimize the number of bill of materials levels Facility layout that supports continuous or single-piece flow . Minimize distance traveled and handling . Clearly defined performance metrics . Minimize the number of production, inventory, and accounting transactions . Good calibration of all gauges and testing equipment . Employees trained in quality management concepts and tools May freeze the master production schedule . Use reusable containers . Outstanding communication and information sharing . Keep it simple and use visual controls . High quality approaching zero defects Excellent employee recognition and reward systems . Employee cross-training and multiple skills . Empowered and disciplined employees

Explanation / Answer

1. The company Toyota uses the JIT manufacturing method to improve their manufacturing efficiency. The company usually allows the major suppliers of the company to have a manufacturing unit a warehouse within their campus so that there is no delay in the manufacturing and also they do not have to keep the parts as inventory. The required parts will be supplied during the process and they will be supplied based on the needs of the manufacturing unit. This way they will reduce the errors and also make sure that the manufacturing process is very smooth. The company also makes uses of Six-Sigma and Kaizen methods to reduce the production and management issues. The above-mentioned practices are also a part of the best management practices they follow. The company had been popular for their ability to produce quality cars and they give top priority to the accuracy and efficiency.

2. The uses of JIT principles:

3. This affects the customer service in a positive way. When the customers are interested in buying a vehicle, they will contact the customer service and the team will be able to give them a clear picture of the cars available and how long it would take exactly to manufacture the new car and deliver. So the customer will be satisfied with the information. The customers will have fewer complaints as the product quality will be excellent.

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