Question

This chapter discussed Just-in-Time Production. Describe how this method works. Suggest 3 types of products where you feel this would work and why. What is a product that would not work well with this system and why?

Answer 1

Just in Time (JIT) production involves workflow methodology which aims to reduce flow times in production and response time taken from suppliers to customers. It involves efficient method of managing production and fulfiling the received orders.

Products that can go well with JIT production system are Automobiles, Fast Food chains and Tech products.

We can check their suitability on the basis of its application on big companies like Apple, Mc Donalds and Toyota.

Apple has single central warehouse in US with 150 around key suppliers worldwide. This outsourcing make them leaner which results in slashed costs and reduced overstock.

Mc Donalds don't attempt assembling and making products like hamburgers till the order has been taken. Due to this kind of standardization, customers get same experience everytime.

Toyota doesn't allow raw material on production floor until order has been taken. This keeps inventory at minimum as per requirements, which lowers costs.

JIT system of production doesn't suit a product which is more likely to face-

Demand shocks

Supply shocks

Large orders

Small business or business related to vinyl, lumbering, floorings etc should not use JIT production system. Because larger production and orders can save more cost. Shipping and other charges increase the costs. So bulk manufacturing is viable in this kind of businesses.