Question

Write one process step of the automobile manufacturing company which follows JIT practice, and explain in detail how JIT can reduce variability in its inventory levels.

Answer 1

Toyata production system ( TPS) or Just in time is a inventory management concept which reduces inventory cost by flexible arrangements with suppliers and other stakeholders to its production facility. Toyata is known for its world's best production system . The primary aim of JIT is to manage warehouses space , assembling line and unnecessary storage and waste management which provides its a sound efficiency and effectiveness in overall manufacturing of world top class vehicles.  

In this , quality and quantities are important by management of internal sequencing, priorities to the process and many other aspects which produces quality outcomes in long run. Toyata first of all plan for its JIT objectives then only introduced it . It has established itself as best among competitors.  

Variability can be simply understand as a sudden reduction or increase in demand and supply of vehicles to global customers by Toyata. It will definitely impact the level of inventory from time to time.

JIT can reduce variability in its inventory levels with the following steps:

1) It ensures a right size of material flows in the Toyota's production system.

2) It fixes almost every possible wastages cost which again manage the variability of production system.

3) It reduces and fixes the requirements of employees at workplace. It promotes overall a sound level to variability.

4) It helps in fullfilling the Toyota's Toyota's committments with its clients as well as to the vendors with a continuous business transactions which again manage the variability.  

5) It never compromises with the quality of manufacturing which helps to fullfill the actual needs of the customers. It means variability again an issue of easily managed aspects to its global production .