Week1, DQ1 - and after the product is finished. The...

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Just-in-time (JIT) inventory is a corporate philosophy that seeks to accomplish the manufacturing process right, the first time and eliminate any non-value added activities. Non-value added activities can be items, like delays in manufacturing, moving parts, or part inspection. In other words, production inefficiencies cause non-value added activities. JIT is a zero-inventory concept. A benefit for a company that uses JIT inventory is that their inventory levels will be lowered and savings in costs will be realized. In the JIT process, quality inspections/evaluations are handled different from other types of inventory procedures. In JIT, quality is a part of the whole process. JIT’s goal of quality calls for literally every employee involved in the process to be a quality inspector. Inspection of the parts and work to be performed is accomplished before the work is done
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Unformatted text preview: and after the product is finished. The procedure of inspecting the work before and after is known as total quality control or in-line quality control. As an example, Dell has reaped the cost-saving rewards of using JIT. It takes Dell an average of 48 hours to manufacture a computer system. Dell does not stock ready-made computers in a warehouse, waiting on customers orders. Disadvantages of JIT include: Costs could escalate and even cause a company to incur a loss of revenue if the product is not delivered in time. Demands in variances are difficult to manage, if a company has a varied demand pattern, the ordering process will become increasingly more complex. Suppliers are at times reluctant to work with companies who use JIT because they are the ones who end up with the task of having to store stock at their location, instead of the manufacturers location....
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This note was uploaded on 10/10/2010 for the course ACC ACC 349 taught by Professor Costaccting during the Spring '10 term at DeVry Irvine.

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