ch16_ISM[1] - CHAPTER Just-in-Time and Lean Production...

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262 16 C H A P T E R Just-in-Time and Lean Production Systems D ISCUSSION Q UESTIONS 1. JIT is a philosophy of continuous and forced problem solving. It is a continuous program that replaces a series of “fad” programs. 2. A lean producer is a company that adopts a philosophy of minimizing waste, striving for perfection through continuous learning, creativity, and teamwork. 3. Level schedules process frequent small batches rather than a few large batches; the small batches are always changing. They match one day’s demand to one day’s work. 4. Goals of JIT partnerships: elimination of unnecessary activi- ties, elimination of in-plant inventory, elimination of in-transit inventory, and elimination of poor suppliers. Obtaining supplier’s trust in the purchaser’s ability to uphold its end of the arrangement is difficult. 5. JIT allows for safety stock and in-transit inventory (but no more than necessary). Where external, unpredictable issues such as weather arise, more safety stock is necessary. Consignment inventory is also useful. Beyond that, JIT is at risk for events such as weather and work stoppages. 6. Quality relates to JIT: JIT cuts the cost of obtaining good quality; JIT improves quality; and better quality means fewer buffers and therefore a better, easier-to-use JIT system. 7. JIT contributes to competitive advantage through: suppliers, layout, inventory, scheduling, preventive maintenance, quality production, employee empowerment, commitment of manage- ment and employees. 8. JIT partnering with suppliers; few suppliers; nearby suppliers; repeat business with the same suppliers; analysis to enable desirable
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