OMIS 338 Exam 2 Review - Part 3

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What is Just-in-Time and what does it do?

Minimizes inventory and maximizes efficiency. Focuses on continuous forced problem solving driven by pulling customer orders


How does Lean production relate to JIT

Supplies the customer with exactly what the customer wants when the customer wants it, without waste, through continuous improvement

Lead production is cutting out waste whilst ensuring quality


Understand the importance of waste reduction and variability reduction in JIT

Waste Reduction:

  • Anything that does not add value from the customer point of view
  • Storage, inspection, delay, waiting in queues, and defective products do not add value and are 100% waste
  • Efficient, sustainable production minimizes inputs, reduces waste

Variability Reduction:

  • less variability results in less waste

Identify and understand the various types of waste

  1. Over-production
  2. Long Queues
  3. Inefficient Transportation
  4. Excess in Inventory
  5. Motion
  6. Over-processing
  7. Defective products

Basically inefficiency in any aspect of inventory management


Inventory and Cycle time impact related to JIT and Push/Pull process

Time between the arrival of raw materials and the shipping of finished order

Push: production begins based on demand (forecasted or actual demand).

Pull: production orders begin upon inventory reaching a certain level


How do suppliers and the JIT Partnership with them affect your JIT efforts?

Increased diversification
lead time
lot sizes


What is the importance of inventory within a JIT environment

  • Necessary at the minimum level to keep operations running
    • Use a pull system to move inventory
    • Reduce lot sizes
    • Develop just-in-time delivery systems with suppliers
    • Deliver directly to point of use
    • Perform to schedule
    • Reduce setup time
    • Use group technology

Implications of quality for the JIT process

  • Use statistical process control (SPC)
  • Empowers employees
  • Build fail-safe methods
  • Expose poor quality with small lots (poka-yoke)
  • Provide immediate feedback

Why is employee empowerment important?

  • Cross trained for flexibility and efficiency
  • Improved communications facilitates the passing on of important information about the process
  • Getting it right the first time is critical

Be able to calculate a basic EOQ problem as we did in class

Calculate what setup reduction is required to achieve a desire EOQ

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