Concept explainers
Interpretation:Explain the positive and negative points of ‘small lot sizes’ as applicable to just-in-time.
Concept Introduction:Just-in-time is one of the characteristics of the inventory and
Small lot sizes is a derivative of JIT because when the requirements are to be as per requirement, which shall be quite often to avoid holding any inventory. This translates to small lots where ‘small’ is an indicative word.
Interpretation: Explain the contribution of ‘Integrated purchasing and inventory control’ to the success of just-in-time.
Concept Introduction:Just-in-time is one of the characteristics of the inventory and scheduling systems implying that every input resource is to be provided and every work is to be carried out in the required quantity just when it (the resource and/or the work) is required; neither earlier nor later than the requirement. This, as is obvious, tends to eliminate all inventory, double handling, storage etc. This is an essential concept in lean manufacturing.
Inventory control encompasses the management of inventories in all phases including purchasing. Since everything is required as and when and as much as is just required, the entire systems needs to run in a highly coordinated manner. Not only all the phases of the inventory are to be integrated with purchasing but also with finance and production planning. If this is not done, it might create more confusion than benefit.
Interpretation: Discuss the statement ‘Kanban information systems’ are very useful for just-in-time with the positive and negative aspects.
Concept Introduction:Just-in-time is one of the characteristics of the inventory and scheduling systems implying that every input resource is to be provided and every work is to be carried out in the required quantity just when it (the resource and/or the work) is required; neither earlier nor later than the requirement. This, as is obvious, tends to eliminate all inventory, double handling, storage etc. This is an essential concept in lean manufacturing.
It may not be absolutely correct to use the term ‘Kanban information systems’. It is more apt to say Kanban scheduling system whereby a formatted card called Kanban is used to supply material from a previous process to the next process. Kanban (meaning card) is filled up by the next process giving its requirements to the previous process.
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Production and Operations Analysis, Seventh Edition
- Hartley Electronics, Inc., in Nashville, producesshort runs of custom airwave scanners for the defense industry.The owner, Janet Hartley, has asked you to reduce inventory byintroducing a kanban system. After several hours of analysis, youdevelop the following data for scanner connectors used in onework cell. How many kanbans do you need for this connector?arrow_forwardCletus and Spike Company is implementing a Kanban system for a heated water bowl manufacturing line that produces 1,500 units in an eight-hour day. The heating element has a waiting time of 30 minutes and a processing time of one hour. The container size is 40 heating elements, and the safety factor is 15 percent. What is the maximum inventory of heating elements in the system?arrow_forwardWhat is the difference between a just-in-time system and a kanban system?arrow_forward
- Gestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility operates 8 hours per day to produce the Jitterbug, a replacement for the obsolete but immensely popular Jitney Beetle. Suppose that a certain part requires 150 seconds of processing at machine cell 33B and a container of parts average 1.6 hours of waiting time there. Management allows a 10 percent buffer for unexpected occurrences. Each container holds 30 parts, and 8 containers are authorized. How much daily demand can be satisfied with this system?arrow_forwardGestalt, Inc. uses a kanban system in its automobile production facility in Germany. This facility operates 8 hours per day to produce the Jitterbug, a replacement for the obsolete but immensely popular Jitney Beetle. Suppose that a certain part requires 150 seconds of processing at machine cell 33B and a container of parts average 1.6 hours of waiting time there. Management allows a 10 percent buffer for unexpected occurrences. Each container holds 30 parts, and 8 containers are authorized. How much daily demand can be satisfied with this system? (Hint: Recall that r is the average processing time per container, not per individual part.)arrow_forwardThe production schedule at Mazda calls for 1,200 Mazdas to be produced during each of 22 production days in January and 900 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from Gesundheit. The safety stock policy variable, a, is 0.15. The container (a delivery truck) size is 200 tires. The average waiting time plus materials handling time is 0.16 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing time per container in January is 0.10 day. February processing time will average 0.125 day per container. How many containers should be authorized for January? How many for February?arrow_forward
- Which of the following best characterizes JIT systems? Part 2 A. Annual review of operation methods B. Build inventory at a modest rate C. Push method of material flow D. Pull method of materials flowarrow_forwardIn the Toyota Production System, jidoka refers to:(a) level production, where different models are produced alongside each other on theassembly line.(b) continuous improvement, where workers organize meetings to discuss ways ofimproving the production process.(c) the inventory retrieval system, where parts are replenished only when they are needed.(d) the aggressive reduction of changeover and setup times(e) continuous line-balancing to maximize utilization. (f) the cross-training of workers for a wide range of skills. (g) none of the abovearrow_forwardIf the demand per day is 100, the lead time is 5 days, safety stock is 50, and the container size is 55, what is the Kanban number? If the lead time improves to 4 days, what is the Kanban Number?arrow_forward
- The production schedule at Mazda calls for 1,200 Mazdas to be produced during each of 22 production days in January and 900 Mazdas to be produced during each of 20 production days in February. Mazda uses a kanban system to communicate with Gesundheit, a nearby supplier of tires. Mazda purchases four tires per vehicle from Gesundheit. The safety stock policy variable, α, is 0.15. The container (a delivery truck) size is 200 tires. The average waiting time plus materials handling time is 0.16 day per container. Assembly lines are rebalanced at the beginning of each month. The average processing time per container in January is 0.10 day. February processing time will average 0.125 day per container. How many containers should be authorized for January?How many for February?arrow_forwardKrupp Refrigeration, Inc., is trying to reduce inventory and wants you to install a kanban system for compressors on one of itsassembly lines. Determine the size of the kanban and the number of kanbans (containers) needed.Setup cost = $10Annual holding cost per compressor = $100Daily production = 200 compressorsAnnual usage = 25,000 (50 weeks * 5 days each * daily usage of 100 compressors)Lead time = 3 daysSafety stock = 1 2 day’s production of compressorsarrow_forwardneed kanban size as well as the bumber of kanbans please! Need only handwritten solution only (not typed one).arrow_forward
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