Six sigmamethodology provides the techniques and

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Unformatted text preview: 
sophisticated
production
scheduling
 software
to
plan
production
for
each
period
of
time,
which
includes
ordering
the
correct
stock.
 Information
is
exchanged
with
suppliers
and
customers
through
EDI
(Electronic
Data
Interchange)
to
 help
ensure
that
every
detail
is
correct.
 Supplies
are
delivered
right
to
the
production
line
only
when
they
are
needed.
For
example,
a
car
 manufacturing
plant
might
receive
exactly
the
right
number
and
type
of
tyres
for
one
day’s
 production,
and
the
supplier
would
be
expected
to
deliver
them
to
the
correct
loading
bay
on
the
 production
line
within
a
very
narrow
time
slot.
 Advantages
of
JIT
 • • • • • Lower
stock
holding
means
a
reduction
in
storage
space
which
saves
rent
and
insurance
 costs
 As
stock
is
only
obtained
when
it
is
needed,
less
working
capital
is
tied
up
in
stock
 There
is
less
likelihood
of
stock
perishing,
becoming
obsolete
or
out
of
date
 Avoids
the
build‐up
of
unsol...
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This document was uploaded on 03/22/2014.

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