1. Some key elements of production systems are listed in Table = 14.3. Explain b
ID: 469514 • Letter: 1
Question
1. Some key elements of production systems are listed in Table = 14.3. Explain briefly how lean systems differ from traditional production systems for each of those elements.
3. Describe the philosophy that underlies JIT (i.e., what is JIT intended to accomplish?).
5. Briefly discuss vendor relations in lean systems in terms of the following issues:
a. Why are they important?
b. How do they tend to differ from the more adversarial relations of the past?
c. Why might suppliers be hesitant about JIT purchasing?
7. What is the kanban aspect of JIT?
10. What are the benefits and risks of small lot sizes?
Explanation / Answer
Ques 3 Describe the philosophy that underlies JIT (i.e., what is JIT intended to accomplish?).
Ans JIT means Just In Time , It is a business philosophy that focuses on reducing time and cost and eliminating poor quality within manufacturing and non-manufacturing processes. JIT means getting the right quantity of goods at the right place and the right time.JIt is built on simplicity- the simpler the better. ,its very simple to slove at right time .JIT system are fundamental to time base comprtion and waste reduction .It also batch size reduction Its objective is to eliminate product inventories from the supply chain.
Objectives and benefits
Objectives and benefits of JIT manufacturing may be stated in two primary ways:
first, in specific and quantitative terms,
second, general listings and discussion.
A case-study summary from Daman Products in 1999 lists the following benefits: reduced cycle times 97%, setup times 50%, lead times from 4 to 8 weeks to 5 to 10 days, flow distance 90% – achieved via four focused (cellular) factories, pull scheduling, kanban, visual management, and employee empowerment.[41]
Another study from NCR (Dundee Scotland) in 1998, a producer of make-to-order automated teller machines, includes some of the same benefits while also focusing on JIT purchasing: In switching to JIT over a weekend in 1998, eliminated buffer inventories, reducing inventory from 47 days to 5 days, flow time from 15 days to 2 days, with 60% of purchased parts arriving JIT and 77% going dock to line, and suppliers reduced from 480 to 165.[42]
Hewlett-Packard, one of western industry's earliest JIT implementers, provides a set of four case studies from four H-P divisions during the mid-1980s.[43] The four divisions, Greeley, Fort Collins, Computer Systems, and Vancouver, employed some but not all of the same measures. At the time about half of H-P's 52 divisions had adopted JIT.
Its potential risk becomes necessary to find suppliers that are close by or can supply materials quickly with limited advance notice. When ordering small quantities of materials, suppliers’ minimum order policies may pose a problem.
Greeley Fort Collins Computer system Vancour Inventory Reduction 2.8 months 75% 75% Labour cost reduction 30% 15% 50% Space Reduction 50% 30%` 33% 40% WIP stock Reduction 22 days to 1 days Production Increase 100% Quality Improvement 39% scrap,79%rework 80% scrap 30% scrap, rework Throughput time Reduction 50% 17 days to 30 hours Standard Hous reduction 50% No. of shipments Increase 20Related Questions
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