Definition:
"JIT is an inventory management approach which is mostly used by the manufacturing concerns. It is as use full approach because it limits the output of each function in production. The Producers keep only limited useable inventory and make better their demand and supply."
Advantages:
Just in time approach helps to manage the cost of production and limit it. That also helps to manage the inventory cost, demand, and supply problems, cost of goods manufacture and cost of goods sales activities also manage through it. The business uses its assets effectively and efficiently.
We can easily say that through this approach the business solves its mask production problems, productivity issues and manufacturing problems can be solved through it. Inventory cost is reduced and only the demanded inventory available in the warehouse. So the warehouse and production department have a very effective relationship because during the production the orders for deliveries is most frequently and the Supply staff responsible to deliver the required material on time and at the mean time. Mostly the manufacturing firms need a central warehouse to maintain its production in JIT inventory management approach.
Kanban is a Japanese approach which is like it and designed by TOYOTA motors corporation. That system is based on Tickets. The production department uses the tickets for each function in Kanban. That Ticket helps the production and inventory management staff to maintain the production in mean time and also use the demand and supply efficiently. Kanban also helps full to produced or obtained in the required amounts at the required times.
JIT also reduce the waste of material, labor and factory space and machine usage issues. That’s is the reason Just in Time approach mostly known as Lean production approach.
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