The context has changed business with customers increasingly demanding shorter product life cycles of the product is the way influenced the stock is held. While the overcrowding of the market can be better protected, this leads to high costs for implementation. A just-in-time inventory system is generally a cautious approach to inventory management.
The just-in-time inventory system works well in the manufacturing sector, which always produces a large amount of differentiated products, the production --the right part at the right place at the right time. In addition, there are some conditions for a just-in-time inventory system to be successful. Let's take a look.
Stable production plan: this is essential for the effective management of resources. A just-in-time inventory system can be successful only if there is a development expected to meet demand, production and a fixed timetable.
Quick Setup Time: The production processes with long installation times are not theFlexibility in a just-in-time application process. During the time of installation will be able to count on the complexity of equipment and procedures, appropriate planning and design helps to optimize.
Much smaller: Maintain production and distribution of lots as small as is practically possible, the purchase of inputs that is smaller quantities and therefore financial savings. However, this need for a backup from a very reliable supplier network to function efficiently.
Soon as possible: the wholeTime between order and receipt of goods has become obsolete as the time of delivery. The development of a network of providers in the vicinity of the production costs can contribute to this. Lead times in production may be reduced in one place through the creation of jobs. In this context, "Manufacturing Processes for Engineering Materials", a useful book, which deals with the real world demand for materials, processes and systems.
Reallocate idleTime: The just-in-time inventory system to work most effectively when there is minimal waste of resources. For example, if there is a waiting period of a machine or a worker between jobs, this target can be used more effectively through the use of resources for other tasks. Preventive maintenance is also important to reduce the loss of productive time from a failure of the machine.
Trained personnel to work in order to a just-in-time inventory system must have a team capable anddedicated employees for its implementation. Therefore, workers should be conducted in cross-training so that they can more than just a job.
Low error: a solid program of quality assurance for the materials used and the products produced will reduce the need for buffer stocks, too. Workers need to feel responsible for maintaining the quality and the power to take decisions that may be allowed to attend. Programs like "defect tracking software" and "quality controlSoftware "can be of great help in this area.
The bottom line is a just-in-time inventory system can bring many benefits, unless handled carefully managed and well implemented.
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