Just in Time Production Flashcards

Study Notes

Just-in-Time (JIT) Inventory System

JIT is a management strategy that synchronizes raw material orders with production schedules.
Aims to increase efficiency and decrease waste by receiving goods only when needed, minimizing inventory costs.
Requires accurate demand forecasting for optimal performance.

JIT Manufacturing and Toyota Production System

JIT manufacturing is synonymous with the Toyota Production System (TPS), developed by Toyota in the 1970s.
This system emphasizes reducing inventory costs by eliminating the need for storage and managing orders based on customer demand.
Enhancements in the production process hinge on dependable suppliers and effective assembly methods.

Advantages of JIT Inventory Systems

Short production runs allow manufacturers to switch quickly between products.
Reduces costs associated with excessive warehousing and excess raw material purchases.
Encourages minimal inventory levels, reducing capital tied up in unsold goods.

Disadvantages of JIT Inventory Systems

Vulnerable to supply chain disruptions; delays from suppliers can halt production entirely.
Unexpected orders can delay the fulfillment of customer requests, affecting service levels.

Key Components of Toyota's JIT Implementation

Steady production and high-quality processes are critical for JIT success.
Dependable suppliers and non-disruptive operations are essential for maintaining workflow.
Continuous refinement of the JIT system took approximately 15 years for Toyota to perfect.

Lean Management

Lean management promotes continuous improvement, emphasizing small, incremental changes to enhance efficiency and quality.
Focused on minimizing waste in various forms, such as overproduction or excess waiting times.

Important Terms

Raw Material: Basic material from which products are made.
Inventory Costs: Expenses associated with storing unsold goods.
Supply Chain: System connecting production to the consumer.
Disruption: Interruption in the supply chain impacting production flow.
Production Run: A batch of products produced in a single manufacturing cycle.

Goals of JIT Production

Aims to minimize waste related to overproduction, excess inventory, and waiting periods in the production process.
Strives for a production system that operates efficiently with minimal raw materials and short wait times.

Description

This quiz focuses on the just-in-time (JIT) inventory system, a management strategy that synchronizes raw material orders with production schedules. Learn about its benefits, efficiency, and the importance of accurate demand forecasting through a series of flashcards.