Concept explainers
Interpretation:Explain the positive and negative points of ‘small lot sizes’ as applicable to just-in-time.
Concept Introduction:Just-in-time is one of the characteristics of the inventory and
Small lot sizes is a derivative of JIT because when the requirements are to be as per requirement, which shall be quite often to avoid holding any inventory. This translates to small lots where ‘small’ is an indicative word.
Interpretation: Explain the contribution of ‘Integrated purchasing and inventory control’ to the success of just-in-time.
Concept Introduction:Just-in-time is one of the characteristics of the inventory and scheduling systems implying that every input resource is to be provided and every work is to be carried out in the required quantity just when it (the resource and/or the work) is required; neither earlier nor later than the requirement. This, as is obvious, tends to eliminate all inventory, double handling, storage etc. This is an essential concept in lean manufacturing.
Inventory control encompasses the management of inventories in all phases including purchasing. Since everything is required as and when and as much as is just required, the entire systems needs to run in a highly coordinated manner. Not only all the phases of the inventory are to be integrated with purchasing but also with finance and production planning. If this is not done, it might create more confusion than benefit.
Interpretation: Discuss the statement ‘Kanban information systems’ are very useful for just-in-time with the positive and negative aspects.
Concept Introduction:Just-in-time is one of the characteristics of the inventory and scheduling systems implying that every input resource is to be provided and every work is to be carried out in the required quantity just when it (the resource and/or the work) is required; neither earlier nor later than the requirement. This, as is obvious, tends to eliminate all inventory, double handling, storage etc. This is an essential concept in lean manufacturing.
It may not be absolutely correct to use the term ‘Kanban information systems’. It is more apt to say Kanban scheduling system whereby a formatted card called Kanban is used to supply material from a previous process to the next process. Kanban (meaning card) is filled up by the next process giving its requirements to the previous process.
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