Under the concept of just-in-time, waste is considered as any activity which does not add value to an operation.
(i) Explain how the following waste can be eliminated or reduced. i.Waiting time ii.Process iii. defective products iv. Inventory
(ii) Describe the following benefits of just-in-time manufacturing. i. Productivity improvement ii.Design iii.Product cost iv. Administrative ease and simplicity
Waiting time: The waiting time of the customers to avail a product is reduced as the effectivity and efficiency is created via JIT system to make sure the timely and faster deliveries are taken place.
ii.Process: Using the JIT model, the manufacturer has better control over the entire process of manyfacturing, thus it helps to ensure that the system is quickly responding and working in a desired and qualitative manner.
iii. defective products: The amount of defective products are reduced as the qualitative standards are always maintained and communicated in the JIT approach as the parts available to manufacture and maintain the same process are always available in the business leading to less defective products.
iv. Inventory: JIT works on the main purpose of reducing the costs of the inventory management as the products and resources for profuction are being ordered and started when the demand is created thus helps in reducing the inventory for the business.
Productivity improvement: The productivity improvement is effectively increased using the JIT approach as employees are being directed and work on one standard goal, making sure the management is focusing on only prime increase in quality if production.
ii.Design: Because of the JIT approach, the design efficiency and effectivity is created making the company a better place to be manged about where the structure is more cost efficient and also adpatable to changes.
iii.Product cost: The product cost is increased effectively as the inventory management and handling costs are reducing making the costs of the company and also prices to fall giving a competitive advantage.
iv. Administrative ease and simplicity: At last, JIT system is one of the simplest and easiest lean management system to ensure the waste and costs are reduced to have maximum productivity and output generation.
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