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/communication flow
Duration Short term process. Long term process.
Short notes :-
Just-in-time :-
There are two types of inventory systems in any organizations. One is push
(supply) and other is pull (demand) driven. In push System inventory is supplied as
and when manufactured/bought whereas under pull system, the inventory is
delivery when it is needed. Pull’ (demand) driven inventory system in which raw-
materials are delivered just when demand arises by the user and neither sooner
nor later. Its main objective is to eliminate extra inventory. IIT (Just in Time)
inventory strategy was developed and perfected by Taiichi Ohno of Toyota
Corporation during 19605 and 19708 to meet fast changing consumer demands
with minimum delays. It was first used in the US by the Ford motor' company.
Reducing cost
Improving quality
Improving performance
Improving delivery
Adding flexibility
Increasing innovation
JIT IS not about automation. JIT eliminates waste by providing the environment to
perfect and simplify the processes. JIT is a collection of techniques used to
improve operations. JIT principles can be applied to all parts of an organization:
order taking, purchasing, operations, distribution, sales, accounting, design, etc.
An example would be a car manufacturer that operates with very low inventory
levels, relying on their supply chain to deliver the parts they need to build cars.
The parts needed to manufacture the car do not arrive before nor after they are
needed, rather they arrive just as they are needed. It reduces the cost of holding
inventory in advance, before the car is manufactured.
2)Flowcharts:-