13.4.20.

(2)
Emerging cost approaches 5. B

1. Market constraint- related with market condition market order, other factors influencing
in market situation.
2. Paradigm constraints. That is how the employee management and their belief will
affect the overall Quality of work and ethics in the manufacturing process.
3. Physical constraints. The constraints related with physical equipments, that is plant
coma missionary material and other like similar.
4. Policy constraintss. It is dependent on organisational policy vision mission guidelines
procedure that is followed by the organisation.

Benefits of TOC

If we try to reduce the the organisational constraints, will help to improve the productivity and
helps to earn more profit. The following are the benefit of TOC Control.

Increase profit, fast improvement in production, improved capacity, reduced Lead time, reduced
inventory.

Steps involved in TOC.

There has cyclic form approaches to improve theTOC.

Identify the system constraints. There has so many constraints may we can see in organisation
example capacity of supplier, available cash, big distance of material supply and so on…

Second. Design how to to exploit the constraint. Here we think or take remedial action to reduce
the constraint factor by taking appropriate action. Ine helps reduce the wastage, idle time and
helps to utilise resources and the plant capacity

Third. Subordinates everything help to the constraints. Organisation should adjust the rest of
the system to enable the constraint to operate at the maximum effectiveness.

Forth. Evaluate the constraint. If the constrain still exist coma consider what further action can
be taken to eliminate from being the constraints.

Finally. Any constraint still continue in production process consider home identify the constraints
want to restrict in production process and go back to the step 1 identify the new constraints and
go through further steps and eliminate or reduce the constraint factors.

JUST IN TIME APPROACH (JIT)

The Justin Time approach is developed in it is by Japanese. Advance in transportation and
communication have contributed shorter life cycle for product and product delivery. Just in time
help in develop EOQ models.

The just in time focus on maintaining 0 level of inventory that is how to reduce material blockage
in our store room. By eliminating the unwanted storage helps to reduce the inventory cost. In
short we acquire raw material, only we require to produce in short time.

Objectives of Justin Time

1. Reduce inventory, minimise cost of production, reduce wastage for delay, reduce
processing time, ensure timely delivery schedule both inside and outside the firm,
eliminate protection bottlenecks, achieve total quality control, ensure zero breakdown
and continuous flow of production, provide better customer satisfaction, minimise setup
time.

Features of just in time

1. Production of purchasing only done on demand that is demand pull system minimise
carrying cost of inventory, minimise wastage and you tell every, adopt the total quality
management approach to achieve consistency in quality standard, it is a prerequisite for
a b m and total quality management, efficient introduction of automation, avoid EOQ,
helps to reduce the collision between supplier and produce producer, maintain good
relationship, production in small batches.
Benefit of JIT

Just-in-time help to produce right quantity at a right time. It reduce storage cost, It reduce
investment in inventory. Minimise stock of production. Avoid of obsolescence. Reduce
processing time. Eliminate wastage. increase productivity. Reduce cost of inspection quality
control valuation expiration etc. It help minimising setup cost. It lead to higher quality. It increase
flexibility and innovation.

Limitations of JIT

In the case of delay in production, the

finished product cannot be delivered in time. Purchases are made in small quantity can there
are no benefit of bulk purchasing.It is not easy to implement. Cost of implementation is high. It is
suppliers dependent. It is not a substitute for advanced manufacturing technology. it can be only
implemented if there is total commitment at all levels in the organisation.

Steps in implementation
Make a clear plan of action. Communicate just-in-time plan to work force and how to implement
the just in time in organisation and explain what the benefit to the organisation. Data gathering
and validate inventory level. Establish a Production plan. communication with them supply
chain. Establish a material signalling process. documents process and train staff.
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