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Lean Production Techniques (disadvantages of just in time (increased…
Lean Production Techniques
7 kinds of waste
inventory
defects
motion
waiting
unnecessary transportation
over-processing
Overproduction
Just in time
success depend on
Good quality control procedures
access to a supply of skilled workers
reliable supplier
advantages
stock exactly matches production
improves cash flow
savings on purchase and storage costs
less stock wastage
production delays prevented
can respond to changes in demand
close ties with suppliers established
disadvantages of just in time
increased ordering and administration costs
less time for quality control on arrival of materials
may lose bulk-buying discounts
danger of lost sales
increase in supplier's transport costs
suppliers must be willing to participate increase in order processing costs
increased chance of transport failures
high dependency on suppliers to meet delivery and quality standards
increased volume of traffic on rood