OPERATIONS MANAGEMENT

Operations Management

Operations Management

How do JIT demand-based systems differ from forecast driven systems?

Just In Time (JIT)

JIT system was established in Japan in the late 50s. Twentieth century, the most successful works in the TQM. The Just-in-time, or JIT, is a method of organization and production management, specific sector of the industry, which is to minimize inventory and in the process of manufacture. Also called "lean" or "five zeros" or "zero-delay", the method comes from the Toyota way: it is to minimize the transit time of components and products through the various stages of development, raw material to delivery of finished products. The five zeros are zero down, zero delay, zero paper, zero inventory and zero defects. The implementation of the just in time system leads to a significant reduction of inventories and higher consumer response (Ruffa, Stephen, 2008).

The purpose of this method is the continuous improvement of quality and process reliability, while minimizing the time from order entry to fulfillment, minimizing the cost of marriage and to minimize the desired space. The essence of JIT is that unused for some time; stocks are unproductive expenditure and make the production costs. The system enables the production of the necessary parts at the appropriate time and appropriate quantity (Ruffa, Stephen, 2008). The system of JIT is a pull system. The concept of "pull" system means that everything should be done only in the quantity and quality, so while you want directly to your customers. Pull system - is an organization of the process, when the subsequent stage production of "pulling" everything you need from the previous stage at the right time and in the appropriate quantity (Ruffa, Stephen, 2008).

Forecast Driven System

Forecast driven system of production is a system that is based on producing goods on the basis of forecasting done at an earlier time, regarding the demand of the goods in a later period. Organizations using this system of production forecast the demand of the goods in a later period and start the production at an earlier period, in order to be ready to supply the goods to the market on time of its demand. The advantages of using this method include the fact that organizations are prepared before the time arrives to supply the goods, when demanded by the customers. For example, a garments company would produce cloths for the winter season during the summer by forecasting the demand for the cloths in winter (Ruffa, Stephen, 2008). Once the production is complete, they goods are stored and as the winter season arrives, the cloths are then delivered to the market. One disadvantage of this is the fact that it increases the cost for the company, as they have to bear the storage and freight cost for these goods (Ruffa, Stephen, 2008).

What are the major pros and cons of JIT and lean manufacturing systems? What do they have to do with no value added or wasted activities?

Advantages and Disadvantages of JIT

Just in time is a very efficient and effective way of inventory ...