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Published by: Usman Ilyas on Jun 25, 2012
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Naser Shoukat Firfire
Master of Business Administration - MBASemester II MB0044 – Production & OperationsManagement - 4 Credits (Book ID: B1133)Set- 1 (60Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Explain in brief the origins of Just In Time. Explain how JIT isimplemented
 Just-In-Time (JIT) manufacturing is a process by which companies don’t keeplots of excess inventory; instead, they manufacture a product as an ordercomes in. It is a management philosophy of continuous and forced problemsolving. The objective of JIT manufacturing system is to:· Eliminate waste that is, minimise the amount of equipment, materials, parts, space,and worker’stime, which adds a great value to the product
· Increase productivity
 JIT means making what the market demands when it is in need. It is the most popularsystems that incorporate the generic elements of lean systems. Lean productionsupplies customers with exactly what the customer wants, when the customer wants,without waste, through continuous improvement.Deploying JIT results in decrease of inventories and increases the overallefficiencies. Decreasing inventory allows reducing wastes which in turn results insaving lots of money. There are many advantages of JIT. JIT:· Increases the work productivity· Reduces operating costs· Improves performance and throughput· Improves quality· Improves deliveries· Increases flexibility and innovativenessFor industrial organisations to remain competitive, cost efficiencies have becomecompulsory. JIT helps in this process. It is extended to the shop floor and also theinventory systems of the vendors. JIT has been extended to mean continuousimprovement. These principles are being applied to the fields of Engineering,Purchasing, Accounting, and Data processing.However, for organisations to completely implement JIT manufacturing system, theyneed to have a proper commitment along with the following basic facilities - propermaterial, quality, equipment, and people involvement.
Characteristics of JIT
In this section, we will study different methods by which inefficiency is reduced andunproductive time is minimised. The consequent savings are to be utilised forreducing cost and rendering better service to the customer. Shigeo Shingo anauthority on JIT at Toyota classifies the wastes to be eliminated as follows. Theseven wastes to be eliminated according to JIT are:
Naser Shoukat Firfire
1. Over production2. Inventory3. Waiting time4. Movement5. Effort6. Defective products7. Over processing
Seven wast es
Over production
Over production is to manufacture products before it isactually needed. If the demand for that product decreases, the extra parts orproducts produced may not be useful or needed. Also over production results in highstorage costs and is also difficult to detect defects. So, over production is considereda waste.2.
Excess procurement or production builds up stock of materials whichare not immediately used, thus locking space and funds carrying heavy costs. Thefigure 13.2, illustrates the inventories at different levels of an organisation – Supplierdistribution, Production, and Customer distribution.
Naser Shoukat Firfire
Inventories in an organisation
Waiting time:
Waste of time happen when goods are not moving or beingprocessed. The operator, the machine or the part will either be not working or beworked upon. The duration of waiting is can be said to be unproductive and maycreate more serious consequences.4.
Any unnecessary movement is a waste of energy; it causesblockages, disrupting movements and delaying the flow of other items creatingdelays.5.
 The people, who work, do not make a study as to how the products onwhich they are making are utilised and do not realise the purpose for which they aremade. This lack of education will lead to waste of resources. Finally, they end up inshortage of resources when needed.6.
Defective products:
 The defective products lead to a tremendous loss to thecompany. This is because they use up the same equipments, workmen and the timethat would be used to make good products. Thus defective products use up resourcesand result in losses.7.
Over Processing:
Some steps like unnecessary processing or production do notadd value to the final output. As a result, it is waste of all the inputs that go into theprocess.Since these wastes have to be eliminated, a thorough study of how they occur andwhat steps would result in their elimination is of paramount importance. The nextsection focuses on some of them.
13.3 Key Processes to Eliminate Waste
 The key processes to eliminate the wastes are listed below:13.3.1 Kanban for material flow13.3.2 High quality production13.3.3 Small and uniform workloads13.3.4 Suppliers as partners13.3.5 Flexible workforce and training13.3.6 Total productive maintenance
Q2. Bring out the historical background of Value Engineering.Elucidatethree companies which have incorporated VE with brief explanation
VALUE ANALYSIS & VALUE ENGINEERINGValue Analysis is an effective tool for cost reduction and theresults accomplished are far greater. It improves theeffectiveness of work that hasbeen conventionally performed as it questions and probes into the very purpose,design, method of manufacture, etc., of the product with a view topinpointing unnecessary costs, obvious and hidden which can beeliminated without adversely affecting quality, efficiency, safetyand other customer features.

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