Just in Time Inventory Control
The objective of this final paper is to summarization of the Just-in-Time inventory control concept. This paper includes the definition of JIT, a historical perspective of the Just-in-Time Inventory Control concept. This paper also included the advantages and disadvantages of JIT, and decision-making on Just-in-Time Utilization. The Just-In-Time (JIT) concept is a "process for optimizing manufacturing processes by eliminating waste including wasted steps, wasted materials, and excess inventory" (Damiano, 2003). The JIT concept is also known as lean production or stockless production. This process should improve profits and return on investments. "This is done by reducing inventory levels, increasing the inventory turnover rate, improving product quality, reducing production and delivery lead times, and reducing other costs such as those associated with machine setup and equipment breakdowns" (Tubular Steel, Inc., 2004). Timeline of Just-in-Time Inventory Control ConceptThe Just-in-Time manufacturing concept isn't especially new. The lineage of lean manufacturing and Just-in-Time (JIT) Production goes back to Eli Whitney. In 1799, Mr. Whitney developed the con
Vendors assist in this cost savings by performing quality checks before the material is shipped. Part of the warehouse used to store inventory, can now be used as part of the production line where smaller quantities of inventory will be held based on need. Another important factor is plant layout should be changed in order to maximize working flexibility when using JIT. The first of which will be a cost savings in inventory which has the most significant impact. This will require always open lines of communication; whether they are internal or external to the facility, a supplier must be able to see the amount of supplies on-hand at any given time so that they will be able to predict your needs. However, if ordered parts were not rated as high priority in the ordering process and the requisitions traveled through normal supply channels, the customer wait time was so long that it sometimes posed a threat to operational readinessDecision-Making on Just-in-Time UtilizationAssessmentThe needs of the business may or may not warrant a just-in-time inventory management solution and could, in fact, suffer if one is implemented in a business that is not suitable or without the proper safeguards in place. JIT inventory systems require that changes in needs should be communicated through direct channels with the supplier as soon as they are noticed. If there is hesitation there may not be enough time for the company and the supplier to make the necessary adjustments. Gilbreth "added Motion Study and invented Process Charting. Conclusion As our team has shown, the Just-in-Time Inventory control system is a viable process for almost any business to embrace. The goal is to not have any defects. If your employees are not willing to make the extra effort that it will require focusing their attentions on the new process, the system will not work properly. To avert the possibility that units might run out of critical supplies, a "work-around" just-in-time distribution system called Desert Express was developed. The plant should arrange machines and equipment in sequence and utilize one worker to be responsible for several processes and machines.
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Acceptance Essays
