JIT Manufacturing and Inventory Control System Essay

JIT Manufacturing and Inventory Control System Since the dawn of human existence evolution in all sectors of society has occurred due to Economic factors. This has mainly happened due to the fact that all technological achievements have occurred in favor of money. Specifically we can admit that Economy is the main reason for growth and development. By these means it is in our interest to establish strong economies either as societies (macroeconomics) or as individuals (microeconomics). For these reasons several techniques and methods have been initiated in order help modern individuals to develop. Such techniques are usually Accounting or†¦show more content†¦By these means the company is never overstocked and that has as an affect that the company will never have a liquidity problem since assets as stock of goods are smaller and cash is bigger. Another reason for this to happen is the fact that Just in time manufacturing is a philosophy of eliminating non value added activities and increasing product quality throughout the manufacturing process (Meigs, Bettner, p. 804). But how can we control if our Just in time manufacturing system is efficient? The answer to that is given by Meigs and Bettner : A widely used measure of efficiency in a Just in time system is the Manufacturing Efficiency ratio (p. 805). This ratio is given by the Value Added Activities time over the Cycle time. The cycle time is the time of processing, storing, moving and inspecting that is spent on the material before their usage. If the ratio is equal to one then we have the perfect Manufacturing efficiency ratio. This means that the smaller the number the less efficient is our Just in Time manufacturing method and the larger are the Value added activities. Finally we can conclude that if we perform the Just inShow MoreRelated JIT manufacturing and inventory control system Essay1053 Words   |  5 PagesJIT Just-in-time production is considered to be on the leading edge of technological advancement. With improvements in the virtually every industry, maintaining an effective production line while minimizing inventory costs is a very feasible option. Just-in-time systems are designed to keep inventory costs at a minimum, unlike the ways of old, with large warehouses loaded with back inventory. With technology allowing instantaneous communication around the world, production lines and stores doRead MoreNotes On Jit Inventory Systems Essay1666 Words   |  7 Pagesintroduced during the 1950s and 1960s that has the characteristics of a pull system, meaning required inventory is only produced or used when demand is â€Å"pulling† to do so. After the inventory is used up, only what is needed to replace what has been used is manufactured. 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