Advantages and Example Application of Just-In-Time.

You must have knowledge of basics of Just in Time production system to understand this. 

Advantages of Just in Time

Advantages of Just in Time: 

• Fast detection of defects.

• Low Scrap loss.

• Low Inventory carrying cost.

• Reduced reworks of part.

• Reduction in Inspection of parts.

• Zero Inventory.

Results of Just in Time:

• Production cost reduced by 30% to 40%

• Inventory reduced by 60% to 75%

• Reduction upto 50% of Scrap.

• Lead Times reduced upto 90%

• Rejection rates reduction in 90%

• Upto 50% increase in productivity of direct labors.

• 60% increase in productivity of indirect labors.

Application Example:

Automotive seats are made in the supplier's plant just 3 hours before they are needed at the assembly plant, which is 150 km away. The seats are unloaded at the assembly plant and quickly transferred in the proper sequence of style and color (each seat being marked beforehand for a specific car moving down an assembly line). Each seat arrives on the assembly line just in time for installation.

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