Week 5 Online Discussion Forum

OMPT 620: OPERATIONS MANAGEMENT

1. JIT stands for "just-in-time," a production and inventory management method that
works to manufacture and deliver goods or services just in time—neither too early nor
too late—as needed (Krajewski et al., 2018). JIT manufacturing is also called the
Toyota Production System (TPS) because automaker Toyota adopted the practice in
the 1970s. By aligning production with consumer demand, JIT seeks to minimize
inventory expenses and reduce waste. Companies use this inventory technique to
boost efficiency and reduce waste by acquiring items when needed for manufacturing,
lowering inventory expenses. Producing using this technology requires precise
demand forecasting. JIT further reduces costs, boosts productivity, and increases
operational efficiency (Banton, 2023). The JIT production method depends on
consistent output, skilled workers, no machinery failures, and trustworthy suppliers
for its success and efficiency (Banton, 2023).

2. Lean Production: Lean Production, commonly called Lean Manufacturing or just

Lean, is a method of operations management that emphasizes reducing waste and
continuous efficiency improvement. Lean production's primary concept is to
maximize customer value while reducing waste (Womack et al., 2007). This can be
achieved via various strategies, including identifying and removing non-value-added
operations, improving process flow, minimizing inventory, giving staff more control,
and implementing continuous improvement practices. Lean production aims to
establish a streamlined and flexible manufacturing process to quickly meet client
demands and provide high-quality goods or services with minimal waste. Lean
production provides improved delivery timing, enhanced standards and customer
satisfaction, and minimal defects and use of resources (A Cost Transformation Model 
- Lean Production, n.d.).

3. Pull/Push Systems: Managing the flow of materials or information in operations or

developing an effective inventory control system to manage customer demand can be
done in two ways: pull and push systems (Push System Vs. Pull System Inventory
Control, 2019).

 Push System: In a push system, a predetermined production plan or a

projected demand determines production or material flow. Organizations must
forecast which products consumers will buy and how much of each item
(Jacobs & Chase, 2010). The business will then make enough products to
satisfy the anticipated demand and push the goods to the customer. Products
are pushed through the system regardless of the present demands of customers
 because the production process is based on expected demand (Jacobs & Chase,
2010). If the anticipated need differs from the actual demand, this strategy
may result in overproduction, excessive inventory, and inefficient resource
use. In the push system of inventory control, inventory requirements are
forecasted to satisfy customer demand.
 Pull System: The pull inventory control system starts with a customer order or
when a subsequent process indicates a need for additional materials.
Companies only produce enough products using this method to satisfy client
demands. The technique has the benefit of preventing surplus inventory from
having to be filled, which lowers inventory levels and lowers the price of
transporting and storing items (Push System Vs. Pull System Inventory
Control, 2019). This demand-driven method ensures that products or resources
are produced or supplied at the right time and quantity, preventing
overproduction and excess inventories (Jacobs & Chase, 2010).

4. Kanban, which means "sign" in Japanese, is an inventory management technique used

in just-in-time (JIT) manufacturing to monitor production and place orders for new
supplies of parts and materials (Halton, 2022). A Kanban card is a visual tool for
controlling the flow of materials or work-in-progress (WIP) across a production or
service process. A physical or digital card represents a specific object or job (Liker,
2020). kanban cards provide facts about the item, including its name, amount, and
other relevant details. Kanban also reduces bottlenecks by encouraging
communication and information exchange among individuals and departments. If we
implement Kanban successfully, we can reduce expenses, increase customer
satisfaction, and create more effective processes and the risk of unforeseen issues
might be reduced (Halton, 2022).

References

A cost transformation model  - Lean production. (n.d.). Resources | AICPA.

https://www.aicpa-cima.com/resources/article/a-cost-transformation-model-lean-

production#:~:text=Lean%20production%20is%20a%20production,and%20all%20an

%20organisation's%20processes.

Banton, C. (2023). Just-in-Time (JIT): Definition, Example, and Pros & Cons. Investopedia.

https://www.investopedia.com/terms/j/jit.asp
Halton, C. (2022). What Is the Kanban System? Investopedia.

https://www.investopedia.com/terms/k/kanban.asp

Jacobs, F. R., & Chase, R. B. (2010). Operations and Supply Management: The Core.

McGraw-Hill/Irwin.

Krajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2018). Operations Management:

Processes and Supply Chains. Pearson

Liker, J. K. (2020). The Toyota Way, Second Edition: 14 Management Principles from the

World’s Greatest Manufacturer. McGraw-Hill Education.

Push System Vs. Pull System Inventory Control. (2019, February 4). Small Business -

Chron.com. https://smallbusiness.chron.com/push-system-vs-pull-system-inventory-

control-12650.html

Womack, J. P., Jones, D. T., & Roos, D. (2007). The Machine That Changed the World: The

Story of Lean Production-- Toyota’s Secret Weapon in the Global Car Wars Now

Revolutionizing World Industry. Simon and Schuster.