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JIT vs Traditional System
In recent years, many businesses have tried to eliminate the need to hold inventories by adopting just-in-time (JIT) inventories management (Atrill, 2010). The issue is whether .........................................................................................................................
Walter (2002) claims that traditional approach insulates each stage from its neighbours so that a problem on one phase will not affect other stages. Rosen (2008) also asserts that JIT requires a large initial investment. This essay will argue that implementation of JIT can result in significant benefits for companies in both efficiency and profitability.
It has been claimed that traditional approach makes each stage relatively independent so that, if, for instance, one department stops operating for some reason, buffer inventories allow other departments to continue operating and achieve high-capacity utilisation (Slack, 2010). This approach seeks to encourage efficiency by protecting each part of the process from disruption. However, Johnston (2011) sees this situation as s "blanket of obscurity" that lies over the production system and prevents problem being noticed. In lean process any stoppage will affect the whole process, but the responsibility for solving the problem is shared by all staff, considerably improving the chances of the problem being solved in a relatively short period of time.
In recent years, many businesses have tried to eliminate the need to hold inventories by adopting just-in-time (JIT) inventories management (Atrill, 2010). The issue is whether .........................................................................................................................
Walter (2002) claims that traditional approach insulates each stage from its neighbours so that a problem on one phase will not affect other stages. Rosen (2008) also asserts that JIT requires a large initial investment. This essay will argue that implementation of JIT can result in significant benefits for companies in both efficiency and profitability.
It has been claimed that traditional approach makes each stage relatively independent so that, if, for instance, one department stops operating for some reason, buffer inventories allow other departments to continue operating and achieve high-capacity utilisation (Slack, 2010). This approach seeks to encourage efficiency by protecting each part of the process from disruption. However, Johnston (2011) sees this situation as s "blanket of obscurity" that lies over the production system and prevents problem being noticed. In lean process any stoppage will affect the whole process, but the responsibility for solving the problem is shared by all staff, considerably improving the chances of the problem being solved in a relatively short period of time.