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JIT and Lean Operations

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JIT and Lean Operations
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C H A P T E R

JIT and Lean Operations

D ISC USSI ON Q U ESTI O NS
1. JIT is a philosophy of continuous and forced problem solving.
It is a continuous program that replaces a series of “fad” programs.
2. A lean producer is a company that adopts a philosophy of minimizing waste, striving for perfection through continuous learning, creativity, and teamwork.
3. The Toyota Production System (TPS) has three core components: continuous improvement, respect for people, and standard work practices. TPS is the standard for repetitive manufacturing.
4. Level schedules process frequent small batches rather than a few large batches; the small batches are always changing. They match one day’s demand to one day’s work.
5. JIT allows for safety stock and in-transit inventory (but no more than necessary). Where external, unpredictable issues such as weather arise, more safety stock is necessary. Consignment inventory is also useful. Beyond that, JIT is at risk for events such as weather and work stoppages.
6. Quality relates to JIT: JIT cuts the cost of obtaining good quality; JIT improves quality; and better quality means fewer buffers and therefore a better, easier-to-use JIT system.
7. TPS contributes to competitive advantage through: suppliers, layout, inventory, scheduling, preventive maintenance, quality production, employee empowerment, commitment of management and employees.
8. JIT partnering with suppliers; few suppliers; nearby suppliers; repeat business with the same suppliers; analysis to enable desirable suppliers to become/stay price competitive; competitive bidding mostly limited to new purchases; buyer resists vertical integration and subsequent wipeout of supplier business; and suppliers are encouraged to extend JIT buying to their suppliers.
9. The word is kanban, and is closely associated with JIT. It relies on visual or other simple signals to indicate when items need to be “pulled.” It is symbolic of the waste

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