JIT Stock Control No buffer stocks, components arrive when needed Supplier relationships have to be excellent Production staff must be multi-skilled.

JIT Stock Control• No buffer stocks , components arrive when

needed• Supplier relationships have to be excellent • Production staff must be multi-skilled and

ready to change jobs • Equipment must be flexible

• Demand forecasts must be accurate • Latest IT equipment required

• Good employer-employee relationships• Quality = Priority.

Advantages

• Less capital , lower op cost

• Lower costs

• Less chances of stock becoming obsolete

• Staff motivation

• Quicker response time through systems

Disadvantages

• Supply failure = System Breakdown

• Higher delivery costs ( small deliveries )

• Order admin costs

• Lower bulk discounts

• Reliance on outsiders .

Lean Production• Lean manufacturing or lean production, is

the optimal way of producing goods through the removal of waste and implementing flow,

as opposed to batch and queue .

• Quality output with fewer resources .

Simultaneous Engineering

• R&D done simultaneously for new products.

• New products arrive faster eliminating the danger of

obsolesce • Unlike sequential engineering .

Flexible Specialisms• Technology + Changing consumer tastes make

very short production runs • Quick changes require :

• Flexible Work Contracts • Flexible machinery• Flexible Workers

• This leads to quicker response times , wider ranges , reduced stock holdings and increases in

productivity .• This is also called time based management .

Kaizen

Kaizen• Continuous Improvement• All workers contribute• Managers DO NOT know best in all

cases• Small makes big • Management culture promotes

worker involvement • Quality cells that are empowered • All staff are involved

Evaluating Kaizen• Its limitations include :

• Senior mangers may resist

• Short term tangible costs

• Important advances made only early on

• Some proposed changes may require a complete overhaul and so may be expensive