Just-in-Time Processing

Just-in-Time Processing - just-in-time (JIT) processing ....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Just-in-Time Processing Traditionally, continuous process manufacturing has been based on a  just-in-case  philosophy:  Inventories of raw materials are maintained  just in case  some items are of poor quality or a key  supplier is shut down by a strike. Similarly, subassembly parts are manufactured and stored  just in  case  they are needed later in the manufacturing process. Finished goods are completed and stored  just in case  unexpected and rush customer orders are received. This philosophy often results in a  “push approach,”  in which raw materials and subassembly parts are pushed through each process.  Traditional processing often results in the buildup of extensive manufacturing inventories. Primarily in response to foreign competition, many U.S. firms have switched to 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: just-in-time (JIT) processing . JIT manufacturing is dedicated to having the right amount of materials, parts, or products just as they are needed. JIT first hit the United States in the early 1980s when automobile companies adopted it to compete with foreign automakers. Many companies, including Dell , Caterpillar , and Harley-Davidson now successfully use JIT. Under JIT processing, companies receive raw materials just in time for use in production, they complete subassembly parts just in time for use in finished goods, and they complete finished goods just in time to be sold. Illustration 17A-1 shows the sequence of activities in just-in-time processing. Illustration 17A-1 Just-in-time processing...
View Full Document

Page1 / 2

Just-in-Time Processing - just-in-time (JIT) processing ....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online