Comments on: Just In Time http://www.logisticslogistics.com/blog/2006/11/28/just-in-time/ My thoughts on Logistics Fri, 21 Nov 2008 08:03:06 +0000 http://wordpress.org/?v=2.0.5 by: info http://www.logisticslogistics.com/blog/2006/11/28/just-in-time/#comment-3 Fri, 15 Dec 2006 22:07:13 +0000 http://www.logisticslogistics.com/blog/2006/11/28/just-in-time/#comment-3 Exactly. Efficiency is the key, and developing a proprietary plan that caters to actual demand will certainly reign supreme over any generic business plan that overpopulates a company with unused inventory. Vito Exactly. Efficiency is the key, and developing a proprietary plan that caters to actual demand will certainly reign supreme over any generic business plan that overpopulates a company with unused inventory.

Vito

]]> by: Jim Caya http://www.logisticslogistics.com/blog/2006/11/28/just-in-time/#comment-2 Fri, 15 Dec 2006 21:56:11 +0000 http://www.logisticslogistics.com/blog/2006/11/28/just-in-time/#comment-2 Two keynote examples of JIT systems are: 1) The Toyota Production Systems 2) Dell Both realized that inventory held anywhere in the supply chain was nothing but a waste of money due to constant changes in technology and market demands. Thus, toalleviate this problem they implemented “pull” systems which effectually and effectively eliminated waste. Rather than suppliers dumping (pushing) products on them (Dell and Toyota) forcing them to use those parts in production so as to avoid heavy (sunk) losses associated with the high levels of inventory; these companies reorganized their supply chain so that the demand stemming from customers would stimulate production and pull inventory from the suppliers. This helped achieve another goal which was to level out workloads so that more constant flow of products was being produced because now the companied only made products to demand, they did not make products to use excess parts as was the prior situation. Two keynote examples of JIT systems are:

1) The Toyota Production Systems
2) Dell

Both realized that inventory held anywhere in the supply chain was nothing but a waste of money due to constant changes in technology and market demands. Thus, toalleviate this problem they implemented “pull” systems which effectually and effectively eliminated waste. Rather than suppliers dumping (pushing) products on them (Dell and Toyota) forcing them to use those parts in production so as to avoid heavy (sunk) losses associated with the high levels of inventory; these companies reorganized their supply chain so that the demand stemming from customers would stimulate production and pull inventory from the suppliers. This helped achieve another goal which was to level out workloads so that more constant flow of products was being produced because now the companied only made products to demand, they did not make products to use excess parts as was the prior situation.

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