2 selection of potential sources of supply 3 making

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2) Selection of potential sources of supply. 3) Making request for quotations. 4) Receipt and analysis of quotations. 5) Selection of right source of supply. 6) Issuing the purchase order. 7) Follow-up and expediting the order. 8) Analyzing receiving reports and processing discrepancies and rejections. 9) Checking and approving vendor's invoices for payment. 10) Closing completed orders. 11) Maintenance of records and files. 18.3.12 JUST IN TIME SYSTEM (JIT) Just-In-Time (JIT) originated in Japan. It is recognized as technique/ philosophy/way of working and is generally associated with the Toyota motor company. In fact JIT was initially known as the 'Toyota Production System'. Within Toyota Taiichi Ohno, a Mechanical Engineer & Manager by profession is credited as the originator of this way of working. The beginnings of this production system are rooted in the historical situation that Toyota faced. After the Second World War the president of Toyota said 'Catch up with America in three years, otherwise the automobile industry of Japan will not survive'. At that time one American worker produced approximately nine times as much as a Japanese worker. Taiichi Ohno found that American manufacturers made great use of economic order quantities- the idea that it is best to make a 'lot' or 'batch' of an item (such as a particular model of car or a particular component) before switching to a new item. They also made use of economic order quantities in terms of ordering and stocking the many parts needed to assemble a car. It is defined as “a philosophy of manufacturing based on planned eliminat ion of all waste and continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery and including all stages of conversion from raw materials onward. The primary to delivery and including all stages of conversion from raw materials onward. The primary elements of JIT are to have only the required inventory when needed, to improve quality to zero defect, to reduce lead times by reducing set-up times, queue lengths and lot sizes, to incrementally revise the operation themselves and to accomplish these things at minimum cost. In the broad sense, it applies to all forms of manufacturing, job- shop, process as well as repetitive” 18.3.12.1 Just -in-Time (JIT) Philosophy It is a philosophy of continuous and forced problem solving. With JIT, supplies and components are “pulled” through a system to arrive where they are needed and when they are needed. When good units do not arrive in time (just as needed), a
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230 “problem” has been identified. This makes JIT an excellent tool to help operations managers add value by driving out waste and unwanted variability. Because there is no excess inventory or excess time in a JIT system, costs associated with unneeded inventory are eliminated and throughput improved. Consequently, the benefits of JIT are particularly helpful in supporting strategies of rapid response and low cost.
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