JIT & JIC Production Strategies Overview
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Questions and Answers

What is a key advantage of the Just in Time (JIT) strategy?

  • Availability of a large storage area
  • Higher inventory levels for market demand
  • Elimination of wasted resources due to overproduction (correct)
  • Consistent and stable supply chain

Which of the following is a disadvantage of the Just in Case (JIC) strategy?

  • Increased capital investment for machinery
  • Delayed distribution due to stock management
  • Flexibility for short product runs
  • Inefficiency stemming from departmental organization (correct)

How does JIT impact inventory storage requirements?

  • It needs a minimal amount of storage for emergency stock
  • It organizes storage based on product type
  • It eliminates the need for any storage space (correct)
  • It requires large storage areas for components

What kind of capital investment is typically required for a JIT system?

<p>High initial investment but flexible machinery usage (A)</p> Signup and view all the answers

What is a main goal of a company using a JIC strategy?

<p>To ensure parts are immediately available for rush orders (C)</p> Signup and view all the answers

Which aspect can contribute to a reliability advantage in the JIC approach?

<p>Immediate product availability after quality control (C)</p> Signup and view all the answers

What is a significant disadvantage of the JIT method concerning reliability?

<p>Dependence on timely delivery and production processes (A)</p> Signup and view all the answers

Which of the following accurately describes the organization of JIT production?

<p>Factory organized in cells/modules for flexibility (C)</p> Signup and view all the answers

What is a primary focus of lean production?

<p>Eliminating waste in various areas (D)</p> Signup and view all the answers

How does lean production view product and process design?

<p>As an ongoing activity (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of lean production?

<p>High initial capital requirements (D)</p> Signup and view all the answers

What principle of lean production emphasizes continuous improvement from all levels of the workforce?

<p>Kaizen (A)</p> Signup and view all the answers

A disadvantage of lean production can include:

<p>Difficulty in managing worker attitudes (D)</p> Signup and view all the answers

What is the primary goal of value stream mapping?

<p>To identify value and waste in production (A)</p> Signup and view all the answers

How does lean production adapt to market demand?

<p>By maximizing production flow (A)</p> Signup and view all the answers

In lean production, why is it important to respect and empower workers?

<p>They provide critical insights for improvements (C)</p> Signup and view all the answers

What defines a product family in manufacturing?

<p>A group of products with common characteristics (B)</p> Signup and view all the answers

What does lead time refer to in production?

<p>Time between order and delivery (B)</p> Signup and view all the answers

Which of the following advantages is associated with lean production?

<p>Reduced environmental impact (D)</p> Signup and view all the answers

The principle of pulling production is primarily based on:

<p>Meeting actual customer requirements (B)</p> Signup and view all the answers

What is a significant challenge in implementing lean production?

<p>Management of change in worker attitudes (C)</p> Signup and view all the answers

Which lean production principle reduces the occurrence of defects?

<p>Zero defects (A)</p> Signup and view all the answers

Which of the following is NOT one of the 5 Ss?

<p>Sifting (C)</p> Signup and view all the answers

What is primarily aimed at reducing the size of the workforce in Computer Integrated Manufacturing?

<p>Integration of computers (C)</p> Signup and view all the answers

Which of the following is considered a waste in the context of manufacturing?

<p>Overproduction (B)</p> Signup and view all the answers

How does Statistical Process Control (SPC) contribute to quality management?

<p>It uses statistical methods to ensure efficiency. (C)</p> Signup and view all the answers

What is a disadvantage of Computer Integrated Manufacturing (CIM)?

<p>High initial capital costs (B)</p> Signup and view all the answers

What is the main goal of Quality Assurance (QA)?

<p>To cover all aspects from design to documentation. (A)</p> Signup and view all the answers

Which of the following best describes the purpose of the 'Standardizing' stage within the 5 Ss?

<p>Setting standards that everyone follows (B)</p> Signup and view all the answers

Which production scale is NOT suited for Computer Integrated Manufacturing?

<p>One-off production (D)</p> Signup and view all the answers

What does the concept of 'Just-In-Time' (JIT) primarily relate to in a CIM context?

<p>Timing of material purchases (C)</p> Signup and view all the answers

Which of the following activities is NOT included in the elements of Computer Integrated Manufacturing?

<p>Manual labor outsourcing (A)</p> Signup and view all the answers

What is one of the main benefits of continuous monitoring in Quality Control?

<p>Ensures processes perform to standards (C)</p> Signup and view all the answers

Which of the following accurately represents a characteristic of Quality Control (QC)?

<p>Reactive in finding defects (C)</p> Signup and view all the answers

Which aspect does 'Sustaining the practice' in the 5 Ss emphasize?

<p>Regular reviews and maintenance of standards (C)</p> Signup and view all the answers

What is the primary purpose of cost analysis in product manufacturing?

<p>To determine potential risks and gains (D)</p> Signup and view all the answers

How can the integration of computers in manufacturing processes primarily enhance production?

<p>By allowing for automation and reducing errors (D)</p> Signup and view all the answers

Which cost is defined as changing in proportion to the goods or services produced?

<p>Variable costs (A)</p> Signup and view all the answers

Why is break-even analysis important for manufacturers?

<p>It identifies the level of sales needed to cover total costs (B)</p> Signup and view all the answers

What does the term 'value for money' primarily refer to?

<p>The relationship between a product's cost and its worth (D)</p> Signup and view all the answers

Which pricing strategy involves determining the price based on market demand before manufacturing a product?

<p>Price-minus strategy (D)</p> Signup and view all the answers

What is the role of fixed costs in production?

<p>To be paid before production starts (D)</p> Signup and view all the answers

How is the return on investment (ROI) expressed?

<p>As a percentage (A)</p> Signup and view all the answers

What do total costs comprise in a manufacturing context?

<p>Both fixed and variable costs (D)</p> Signup and view all the answers

What does the term 'cost-effectiveness' refer to in the context of production?

<p>Minimizing costs while maintaining efficiency (D)</p> Signup and view all the answers

Which statement best describes the term 'unit cost'?

<p>The average cost incurred to produce one product (A)</p> Signup and view all the answers

Which of the following directly affects the pricing strategy of a product?

<p>All of the above (D)</p> Signup and view all the answers

What is the main consequence of not considering economic viability in product design?

<p>The product will be too expensive for consumers (B)</p> Signup and view all the answers

What is target costing aimed at achieving before manufacturing begins?

<p>A desired final cost based on competitive pricing (C)</p> Signup and view all the answers

Which factor is likely NOT considered when determining pricing strategies?

<p>Marketing campaigns (D)</p> Signup and view all the answers

Flashcards

Just-in-Time (JIT)

A manufacturing strategy where companies produce and order items only when needed, minimizing storage space and waste.

Just-in-Case (JIC)

A manufacturing strategy where companies keep a reserve of components or finished products in storage, ensuring they can handle sudden demand.

Lead Time

The amount of time it takes to manufacture and deliver a product to a customer.

Flexibility

The ability to quickly adapt to changing market demands or unexpected events.

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Cell Production

The practice of producing items in small batches, only when needed.

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Waste

Any activity or material that does not add value to a product.

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Multi-purpose Machinery

The use of specialized equipment to make a variety of products.

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Production Costs

The cost of materials, labor, and overhead associated with manufacturing a product.

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Lean Production

The practice of minimizing waste and maximizing efficiency in every part of the production process, from design to delivery. It emphasizes continuous improvement and worker empowerment.

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Just-In-Time (JIT) System

A manufacturing system where materials and products are delivered to the production line only when they are needed, minimizing inventory and waste.

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Kaizen

The ongoing process of finding and eliminating waste in all aspects of production, involving workers and management.

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Value Stream Mapping

Analyzing and mapping the entire process of producing and delivering a product, identifying areas for improvement.

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Product Family

A group of products that share similar features, components, and manufacturing processes.

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Multi-skilled Workforce

A skilled workforce that can perform multiple tasks, contributing to flexibility and efficiency.

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Zero Defects

A production system that aims for zero defects and continuous improvement in quality.

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Zero Inventory

A production system that aims to minimize inventory and waste by producing only what is needed, when it is needed.

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Employee Empowerment

The practice of empowering workers to make decisions and contribute to process improvements.

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Devolution of Power

The transfer of decision-making power from management to workers on the production floor.

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Rapid Changeover

The ability to change production processes quickly and efficiently to adapt to changing customer demand.

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Supplier Partnership

Developing strong partnerships with suppliers to ensure reliable and timely delivery of materials.

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Meeting Customer Requirements

The practice of meeting customer expectations and delivering products that meet their needs.

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Doing It Right the First Time

The principle of doing things right the first time, minimizing errors and rework.

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Cost-effectiveness

The most efficient way to design and produce a product from a manufacturer's perspective, considering factors like machinery, R&D, marketing, energy, and overheads.

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Value for money

The relationship between a product's worth and the price paid for it.

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Cost

The value of resources used to create something.

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Pricing

The process of determining the price a company will charge for its product or service.

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Fixed costs

Costs that must be paid before production begins, such as machinery.

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Variable costs

Costs that change directly with the level of production.

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Cost analysis

A tool used to determine the potential risks and gains of producing a product.

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Break-even point

The point where total revenue equals total costs.

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Price-minus pricing

Market demand determines the selling price before manufacturing begins.

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Retail price

The recommended retail price suggested by the manufacturer.

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Wholesale price

The cost of a product sold by the wholesaler.

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Typical manufacturing price

The total costs to manufacture a product, including variable and fixed costs.

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Target cost

A desired final cost for a product determined before production.

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Financial return

The profit generated from a sale or investment into a company.

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Sales volume

The amount of products sold in a specific time period.

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Lean Manufacturing

A manufacturing philosophy that emphasizes eliminating waste and maximizing efficiency through a structured approach.

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5S

A method for organizing a workspace to create a clean, safe, and efficient environment. It involves sorting, stabilizing, shining, standardizing, and sustaining.

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7 Wastes

The seven types of waste to eliminate in lean manufacturing: overproduction, waiting, transportation, inappropriate processing, inventory, motion, and defects.

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Computer Integrated Manufacturing (CIM)

The integration of computers and automation into manufacturing processes to improve efficiency, accuracy, and productivity.

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Design for Manufacture (DfM)

The process of designing a product to optimize its manufacturability, taking into account the available manufacturing processes and technologies.

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CIM System

A system of manufacturing that uses computers to integrate production, business, and manufacturing processes for increased efficiency.

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Quality Control (QC)

A method for ensuring that products consistently meet required standards by monitoring and controlling the manufacturing process.

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Statistical Process Control (SPC)

A statistical approach to monitoring and controlling a process to identify and eliminate causes of variation.

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Quality Assurance (QA)

A proactive approach to ensure quality by establishing procedures and standards throughout the entire production process.

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CIM and Production Scale

The cost of setting up CIM systems is high, making it more suitable for large-scale production like batch, volume, or mass production.

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CIM for Batch, Volume, and Mass Production

CIM systems are well-suited for batch production due to their flexibility and automation capabilities. They are also appropriate for volume and mass production because of their fully automated nature.

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CIM and Maintenance Advantages

CIM can monitor systems for breakdowns. This makes it easier to identify the type and location of a breakdown, simplifying maintenance.

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CIM and Investment/Maintenance Disadvantages

CIM requires a large initial investment due to computers, robots, and personnel training. Maintaining the complex system also demands highly skilled employees.

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CIM Advantages and Disadvantages

CIM offers advantages such as greater consistency, fewer errors, and improved productivity. However, it can also result in job losses and a lack of individuality.

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Study Notes

JIT & JIC Production Strategies

  • Just-in-Time (JIT): A production strategy where components or finished goods are manufactured or ordered only when needed. This minimizes storage space and costs, and avoids excess stock of obsolete or unwanted products.
  • Advantages of JIT: Reduced storage costs, increased flexibility for short production runs, elimination of waste from overproduction, obsolescence, defects, idle time, and material processing.
  • Disadvantages of JIT: Potential delays due to manufacturing or transport issues, higher initial capital investment in potentially versatile machinery, and slightly longer distribution times for customers.
  • Just-in-Case (JIC): A production strategy where a company keeps a stockpile of components or products in inventory. This allows for quick response to urgent orders, and potentially faster delivery times for some products.
  • Advantages of JIC: Faster distribution, readily available parts, enabling quick responses to market changes, and potentially quicker fulfillment of demands.
  • Disadvantages of JIC: Higher storage costs, less efficient factory organization, possible waste from excess stock and obsolescence, and potentially higher overhead related to warehousing and management.
  • Choosing JIT or JIC: Companies must analyse the specific product, market conditions, and economic climate to determine the best strategy.

Lean Production

  • Lean Production Overview: A long-term strategy focused on continuous improvement and feedback which views product and process design as ongoing activities.
  • Lean Production Characteristics: JIT supply systems, a highly trained multi-skilled workforce, quality control, continuous improvement, a focus on zero defects and zero inventory.
  • Principles of Lean Production: Elimination of waste, minimizing inventory, maximizing production flow, rapid production changeovers, valuing workers, pull production based on demand, design for rapid changeovers, reliable supplier partnerships, meeting customer needs, and doing it right the first time.
  • Advantages of Lean Production: Higher customer satisfaction, increased productivity due to targeted improvements, higher quality products, reduced waste, minimized environmental impact, quicker adaptation to changing markets, increased profits, and better work conditions for employees.
  • Disadvantages of Lean Production: Challenges in adapting worker and management attitudes, potential delivery delays if systems break down, issues with supply chain interruptions, high initial capital expenditures, and adjustments needed to workforce training.
  • Value Stream Mapping: Analysis of manufacturing processes using a visual tool to identify and eliminate waste in order to improve efficiency.
  • Workflow analysis: Examination of production lines to pinpoint areas for improvement.
  • Product Family: Group of products sharing similar manufacturing characteristics.

Computer Integrated Manufacturing (CIM)

  • CIM Overview: A computer-driven manufacturing system which combines production, business, and manufacturing processes to optimize production lines.
  • CIM Elements: Computer-aided design (CAD), production planning, purchasing, cost accounting, inventory control, distribution.
  • CIM Scale of Production: Best suited for large-scale batch, volume, or mass production due to high flexibility, automation, and potential machine utilization.
  • CIM Advantages for different scales: Improved productivity and quality, reduced errors, better monitoring of systems, easier maintenance, faster lead times, lower labor costs, higher quality finishes and greater consistency in products.
  • CIM Disadvantages: High initial investment in computers, robots, and training; complex maintenance needs that require specialized employees leading to higher training cost and possible job losses.

Quality Management

  • QC (Quality Control): A reactive approach focused on identifying and correcting defects in products.
  • SPC (Statistical Process Control): A proactive quality tool which uses statistical analysis to optimize processes.
  • QA (Quality Assurance): A proactive approach encompassing all aspects from design to documentation, ensuring that products and related services meet quality standards.
  • Quality Management Importance: Focuses on minimizing waste from defects.

Economic Viability

  • Cost-effectiveness: Most efficient way to produce a product from a manufacturer's perspective.
  • Value for money: Relationship between a product's worth and its price, based on consumer perception.
  • Costing vs. Pricing: Costing determines expenses, pricing determines selling price and potential profit.
  • Fixed Costs: Expenses prior to production, independent of output. (e.g. machinery, facilities)
  • Variable Costs: Production-related expenses that change with output. (e.g. materials, labor)
  • Cost Analysis: Tool used to evaluate product risks and gains, determining break-even points.
  • Break-even point: Where total costs equal revenue.
  • Calculating product Price: Companies use strategies like price-minus, retail price, wholesale price, typical manufacturing price, and target cost.
  • Return on Investment (ROI): Profit percentage on invested capital.
  • Unit cost: Average cost to produce, store, and sell a single product.
  • Sales Volume: Amount of products sold during a specific period.
  • Financial return: Profits generated by a product(or service).

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Explore the essential concepts of Just-in-Time (JIT) and Just-in-Case (JIC) production strategies. This quiz covers the advantages and disadvantages of each approach, highlighting their impact on manufacturing efficiency and inventory management. Test your knowledge of these critical business strategies in production and supply chain management.

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