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1) JIT – JUST IN TIME
JIT manufacturing is a powerful and proven system of efficient production while keeping costs low. Some of the most successful companies in the world have used this philosophy in order to improve their manufacturing processes and better meet customer demand.
Companies that have successfully implemented JIT include Toyocta, Dell and Harley Davidson.
a ) Toyota is considered by many to be the poster child for JIT success. The Toyota production strategy is highlighted by the fact that raw materials are not brought to the prodution floor until an order is received and this product is ready to be built. No parts are allowed at a node unless they are required for the next node, or they are part of an assembly for the next node. This philosophy has allowed Toyota to keep a minimum amount of inventory which means lower costs. This also means that Toyota can adapt quickly to changes in demand without having to worry about disposing of expensive inventory.
Benefits: Small amounts of raw material inventory must be kept at each node in production, so that production can take place for any product. These parts are then replenished when they are used. Accuracy of forecasting is important so the correct amount of raw materials can be stocked.
b) Dell has also leveraged JIT principles to make its manufacturing process a success. Dell’s approach to JIT is different in that they leverage their...
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