operation management
ust-In-Time (JIT) is a very simple idea but one that is essential in modern supply chain management. JIT sets out to cut costs by reducing the amount of goods and materials a firm holds in stock. JIT involves: producing and delivering finished goods ‘just in time’ to be sold partly finished goods ‘just in time’ to be assembled into finished goods parts ‘just in time’ to go into partly finished goods materials ‘just in time’ to be made into parts.
The principle that underpins JIT is that production should be ‘pulled through’ rather than ‘pushed through’. This means that production should be for specific customer orders, so that the production cycle starts only once a customer has placed an order with the producer. Stocks are delivered when they are needed. Consequently, this approach requires much more frequent delivery of stocks. Developing a JIT approach requires sophisticated planning and considerable experience in this field. This is why leading companies contract out their supply chain management to a specialist company like Exel with considerable experience of this area.
Just-In-Time is the key element in what is termed lean production. Lean production is a philosophy and a way of working involving eliminating all forms of waste (where waste is defined as anything that does not add value in the production process and supply chain).
The idea behind lean production stems from Japan where for many years supply chain managers have been seeking to eliminate ‘muda’ ie any activity which involves wasted effort, materials and time. Exel is particularly effective in ensuring lean production because it is able to reduce ‘muda’ at every stage in the supply chain from designing efficient warehousing systems, to sophisticated tracking methods in freight forwarding, developing e-commerce links, and cutting out any wasteful processes at any stage of distribution.
A further advantage of JIT is the benefit derived from eliminating lineside storage of parts and the
The principle that underpins JIT is that production should be ‘pulled through’ rather than ‘pushed through’. This means that production should be for specific customer orders, so that the production cycle starts only once a customer has placed an order with the producer. Stocks are delivered when they are needed. Consequently, this approach requires much more frequent delivery of stocks. Developing a JIT approach requires sophisticated planning and considerable experience in this field. This is why leading companies contract out their supply chain management to a specialist company like Exel with considerable experience of this area.
Just-In-Time is the key element in what is termed lean production. Lean production is a philosophy and a way of working involving eliminating all forms of waste (where waste is defined as anything that does not add value in the production process and supply chain).
The idea behind lean production stems from Japan where for many years supply chain managers have been seeking to eliminate ‘muda’ ie any activity which involves wasted effort, materials and time. Exel is particularly effective in ensuring lean production because it is able to reduce ‘muda’ at every stage in the supply chain from designing efficient warehousing systems, to sophisticated tracking methods in freight forwarding, developing e-commerce links, and cutting out any wasteful processes at any stage of distribution.
A further advantage of JIT is the benefit derived from eliminating lineside storage of parts and the