Unlocking the Potential of the Cloud for IBM Power Systems
Week6.pptx
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3. Quick response manufacturing Just in time manufacturing
QRM is rooted in the concept of Time-based
competition (TBC) pioneered by Japanese
enterprises in the 1980s
Just-in-time manufacturing is also known
as the Toyota Production System (TPS)
because the car manufacturer Toyota adopted
the system in the 1970s
4. Quick response manufacturing Just in time manufacturing
Shorter lead times improve quality, reduce cost
and eliminate non-value-added waste within the
organization while simultaneously increasing
the organization's competitiveness and market
share by serving customers better and faster
JIT is a management strategy that aligns raw-
material orders from suppliers directly with
production schedules. Companies employ this
inventory strategy to increase efficiency and
decrease waste by receiving goods only as they
need them for the production process, which
reduces inventory costs. This method requires
producers to forecast demand accurately.
5. Quick response manufacturing Just in time manufacturing
QRM builds on the basic principles of
eliminating waste and improving efficiency,
while also incorporating principles unique to
QRM. These include:
• Laser-like focus on lead time reduction in
manufacturing.
• Training managers on using time-based
strategies.
• Cell-based system of manufacturing.
• A focus on implementation and sustaining
changes that reduce lead times.
• Using Manufacturing Critical-path Time
(MCT) to measure lead times.
JIT minimizes inventory and increases
efficiency. JIT production systems cut inventory
costs because manufacturers receive materials
and parts as needed for production and do not
have to pay storage costs. Manufacturers are also
not left with unwanted inventory if an order is
canceled or not fulfilled
For JIT manufacturing to succeed, companies
must have steady production, high-quality
workmanship, glitch-free plant machinery, and
reliable suppliers
6. Quick response manufacturing Just in time manufacturing
The leading example of quick response
manufacturing is Dell computers, which became
famous for quickly shipping computers made to
customer's individual specifications.
One example of a JIT system is a car
manufacturer that operates with low inventory
levels but heavily relies on its supply chain to
deliver the parts it requires to build cars on an
as-needed basis. Consequently, the manufacturer
orders the parts required to assemble the
vehicles only after an order is received.
7. Quick response manufacturing Just in time manufacturing
Advantage:
• Less money needed to run the factory as there
aren't many raw materials and finished goods.
• It's easier for them to get a good position in
the market share as quick response times will
attract customers.
• High turnover of stock levels as production
systems are created on demand.
• Smaller batches are made; this means that
there are lower storage costs.
Disadvantages
• Large variation in demand will cause
problems if the manufacturer can't react to
the high production of volume quick enough.
• A lack of supply will make the manufacturer
can problems when trying to meet customer
demand.
Advantage:
• Production runs are short, which means that
manufacturers can quickly move from
one product to another
• This method reduces costs by minimizing
warehouse needs.
• Companies also spend less money on raw
materials because they buy just enough
resources to make the ordered products and
no more
Disadvantage:
• If a raw-materials supplier has a breakdown
and cannot deliver the goods promptly, this
could conceivably stall the entire production
line.
8. Essentially, Quick Response Manufacturing relentlessly pursues the reduction of lead time in all aspects of
your operations. Externally, Quick Response Manufacturing means responding to your customers' needs by
rapidly designing and manufacturing products customized to those needs. Whereas JIT (or lean
manufacturing) focuses on the relentless pursuit (continuous improvement) of eliminating non-value-added
waste to improve quality, reduce cost (and reduce lead time), Quick Response Manufacturing focuses on the
relentless pursuit of reducing lead times throughout your operation to improve quality, reduce cost, and
eliminate non-value added waste.