Just In Time Manufacturing Advantages And Disadvantages Pdf

just in time manufacturing advantages and disadvantages pdf

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By PlanetTogether. Most manufacturing facilities are looking to lower the costs associated with their production in order to maximize their profits. Over time, many scheduling techniques have emerged as a way to help these manufacturing facilities meet their production goals and increase their efficiency.

Advantages and Disadvantages of Just-In-Time Inventory

To browse Academia. Skip to main content. By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. Log In Sign Up. Download Free PDF. Adeyinka Adebiyi. Download PDF. A short summary of this paper. Advantages and Disadvantages of Just-in-Time JIT Manufacturing and Inventory Control System April 12, Traditionally manufacturers have forecasted demand for their products into the future and then have attempted to smooth out production to meet that forecasted demand.

Unfortunately, this approach has a number of major drawbacks including large inventories, long production times, high defect rates, production obsolescence, inability to meet delivery schedules, and ironically high costs. None of this is obvious -if it were, companies would long ago have abandoned this approach. JIT is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.

In just in time manufacturing system inventories are reduced to the minimum and in some cases they are zero. JIT works in the three types of inventories: a Raw materials: inventories provide insurance in case suppliers are late with deliveries. Funds that were tied up in inventories can be used elsewhere.

Areas previously used to store inventories can be used for other more productive uses. Throughput time is reduced, resulting in greater potential output and quicker response to customers. Defect rates are reduced, resulting in less waste and greater customer satisfaction. Most companies find, however, that simply reducing inventories is not enough.

To remain competitive in an ever changing and ever competitive business environment, must strive for continuous improvement. While machines from Compaq and IBM can languish on dealer shelves for two months Dell does not start ordering components and assembling computers until an order is booked. By ordering right before assembly, Dell figures it s parts, on average, are 60 days newer than those in an IBM or Compaq machine. JIT manufacturing also opens businesses to a number of risks, notably those associated with the supply chain.

With no stocks to fall back on, a minor disruption in supplies to the business from just one supplier could force production to cease at very short notice. A real business example: Toyota Just-in-time manufacturing system is vulnerable to unexpected disruptions in supply chain.

A production line can quickly come to a halt if essential parts are unavailable. Toyota, the developer of JIT, found this out the hard way. By Tuesday, Toyota had to close down all of its Japanese assembly line.

Related Papers. Just in time production. By sangeetha dilrukshi. Just-in-time System in the Nigerian Manufacturing Sector. By Ezeokwelume Obinna. Total Supply Chain Management. Guide to Supply Chain Management. By Chukwuedozie Nnaemeka Ezema. Download pdf. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link.

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Innovation in manufacturing

Just-in-time inventory management works by keeping stock levels low; you order just what you need, as closely as possible to when you need it. This approach to inventory management is an essential element in the philosophy of lean manufacturing, which is based on using information and strategy to run a business as efficiently as possible. Just-in-time inventory helps you to manage cash flow. When you stock up and buy inventory in bulk, you may get better prices, but you're likely to buy more than you need for your present purposes. Your working capital will then be tied up in materials that just sit on the shelf for the foreseeable future and you may not have the cash you need for day-to-day expenses such as rent and payroll. Just-in-time inventory reduces the clutter that is an inevitable result of keeping too much stock on hand. With reduced clutter, you'll have space to operate more efficiently.

Advantages & Disadvantages of Just-in-Time Inventory

A corporate system that is designed to produce output within the minimum lead time and at the lowest total cost is the definition of Just In Time Manufacturing JIT and it is also known as just-in-time productio n or the Toyota Production System. The focus of JIT is to improve the system of production by eliminating all forms of wastes. Although this is a very effective method of production however still there are some disadvantages of JIT Manufacturing:.

Long before eCommerce or inventory management software, businesses attempted to meet consumer demand by manufacturing surplus quantities of products and stockpiling inventory. They manufactured just enough inventory to satisfy anticipated demand or they heavily relied on their sales and marketing teams to generate more demand to sell the overstocked inventory. Naturally, this led to high production expenses, inventory costs, and overstocked warehouses. JIT inventory management describes a process in which merchants carry only the stock they need.

A just-in-time inventory system keeps inventory levels low by only producing for specific customer orders. The result is a large reduction in the inventory investment and scrap costs, though a high level of coordination is required. This approach differs from the more common alternative of producing to a forecast of what customer orders might be. By using just-in-time concepts, there is a greatly reduced need for raw materials and work-in-process , while finished goods inventories should be close to non-existent. The use of just-in-time inventory has the following advantages:.

JIT or just in time is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand.

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Yudit M.


time (JIT) is an inventory management system, used to manage the stock that is manufacturing is very similar to Lean manufacturing, and the terms are often.

Satordi G.


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Clarice D.


(Phung ). JIT Advantages and Disadvantages. Barlow () explained the benefits of implementation JIT within.

Lewis B.


Companies like to use JIT as it is seen as a more cost efficient method of holding stock.

Maureen L.


Pros and cons of just-in-time production, and how JIT and lean manufacturing can help you eliminate waste and improve efficiency.