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Just in time


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about the system of the inventory control

Published in: Economy & Finance, Spiritual
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Just in time

  1. 13. Kanban <ul><li>User removes a standard sized container </li></ul><ul><li>Signal is seen by the producing department as authorization to replenish </li></ul>Part numbers mark location Signal marker on boxes
  2. 14. Kanban Signals <ul><li>As a customer “pulls” an order from finished goods, a signal (card) is sent to the final assembly area </li></ul><ul><li>The final assembly area produces and resupplies finished goods </li></ul><ul><li>When final assembly needs components, it sends a signal to its suppliers, a subassembly area and a work cell </li></ul><ul><ul><li>These areas supply final assembly </li></ul></ul><ul><li>The work cell, in turn, sends a signal to the raw material supplier and the subassembly area notifies the work cell and purchased parts supplier of a requirement </li></ul>
  3. 15. Kanban Signals Purchased Parts Supplier Work cell Raw Material Supplier Kanban Sub-assembly Ship Kanban Kanban Kanban Kanban Finished goods Customer order Final assembly Kanban
  4. 16. Advantages of the Kanban <ul><li>A simple and understandable process </li></ul><ul><li>Provides quick and precise information </li></ul><ul><li>Low costs associated with the transfer of information </li></ul><ul><li>Provides quick response to changes </li></ul><ul><li>Limit of over-capacity in processes </li></ul><ul><li>Avoids overproduction </li></ul><ul><li>Is minimizing waste </li></ul><ul><li>Control can be maintained </li></ul><ul><li>Delegates responsibility to line workers </li></ul>
  5. 22. The Inventory Process Suppliers Customers Finished Goods Raw Materials Work in Process Fabrication & Assembly Inventory Storage Inventory Processing
  6. 25. Comparison of JIT and Traditional Assets Necessary to do the work Workers Partners Long-term relationships are unusual Vendors Many, short runs Few, long runs Setup; runs Small Large Lot sizes Many, small Few, large Deliveries Minimal necessary to operate Much to offset forecast errors, late deliveries Inventory JIT Traditional Factor