Just-In-Time (JIT) Inventory for the Service Industry Just-In-Time (JIT): Just-in-time is an inventory strategy implemented to improve the return on investment of a business by reducing the carrying costs of in-process inventory. It emphasizes that production should create items that arrive when needed and neither earlier nor later. Quick communication of the consumption of old stock which triggers new stock to be ordered is key to JIT and inventory reduction. This saves warehouse space and costs
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JIT (Just in Time) Sistema Universitario Ana G. Méndez Universidad del Turabo Mana 340 29 de abril de 2010 JIT 2 Ante nuestra competencia mundial‚ las empresas no deben tomar decisiones de cambios sino de cómo debería ser ese cambio. Como gerentes podemos elegir entre controlar nuestros cambios o que lo controle la competencia. El sistema “Just in Time” ofrece las posibilidades de avance ante la competencia. Los administradores se esfuerzan por implantar
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How do JIT demand-based systems differ from forecast driven systems? JIT demand-based systems or as they are called (Just In Time) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated by carrying costs. In other words it involves a production process that operates solely on customer demand. The reasoning for a JIT system is very simple it is used to highlight the system’s hidden cost of monitoring the inventory. It is
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Introduction Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries by becoming the largest seller of cars in the beginning of 2007‚ the most profitable automaker ($11 billion in 2006) along with increasing sales in‚ among other countries‚ the United States. The world headquarters of Toyota are located in its home country in Toyota‚ Aichi‚ Japan. Its subsidiary‚ Toyota Financial Services sells financing and participates
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Lean Manufacturing‚ 5S and Six Sigma Page 1 of 8 We’re big fans of lean manufacturing practices‚ 5S and Six Sigma based on the results we’ve seen in metal casting plants as well as in other manufacturing companies. If you are not embracing and implementing these concepts‚ chances are your company is not moving forward. If you are not continually improving you are moving backwards relative to your competitors. LEAN MANUFACTURING Lean manufacturing is the implementation of the concept
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sector for a long time. The service industry has recognized that the JIT system can be adapted successfully in their processes and add value to the basic inputs used to create the end product. The most important aspect of JIT is that it lays emphasis on the process and not on the end product. It therefore can be applied to any process within the service sector. The author has followed Benson’s (1986) guidelines for applying JIT in service‚ which are as follows: • synchronization and balance of
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Lean Operations Lean is a philosophy of manufacturing that emphasizes the minimization of the amount of all resources (including time) used in operations of the company. Operations processes are considered to be Lean when they are very efficient and have few wasted resources. The elimination of WASTE is actually the defining principle of Lean. By eliminating waste of all sorts in the system‚ the lean approach lowers labour‚ materials‚ and energy costs of production. Lean also emphasizes building
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proofing</OPTION1> <OPTION2>Iterative testing</OPTION2> <OPTION3>OA</OPTION3> <OPTION4>Early testing</OPTION4> <ANSWER>Mistake proofing</ANSWER> </Main> <Main> <QNo>2</QNo> <QUESTION> ______________ is the critical starting point of Lean thinking</QUESTION> <OPTION1>Project Value</OPTION1> <OPTION2>Customer Value</OPTION2> <OPTION3>Value Addition</OPTION3> <OPTION4>Program value </OPTION4> <ANSWER>Customer Value</ANSWER> </Main> <Main> <QNo>3</QNo>
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Explain the concept of the JIT system in detail. Also‚ discuss the characteristics‚ advantages and disadvantages of the JIT system. It is a management philosophy which aims at eliminating waste from every aspect of manufacturing and its related activities. The term JIT refers to producing only what is needed. JIT is defined as “A technique for the organization of work-flows‚ to allow rapid‚ high quality‚ flexible production whilst minimizing manufacturing waste and stock levels.” (CIMA official
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Lean Management When managing the operation in a skilled industry‚ the business leaders must understand two main goals in creating a successful business - to increase profit and minimize or maintain the costs involved. Targeting these two goals has been a mystery for the entrepreneurs‚ especially with the increasing level of competition. The lean operation offers new perspectives on operation and it will achieve a balanced‚ smooth flow of operations. With lean operation and Just-in-time philosophy
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