Just In Time

Recall from the earlier example, where Mid-Atlantic Hospital System should order 1,826 boxes of bandages for each order to minimize inventory costs. Currently, it is ordering approximately 55 times per year (100,000 annual demand in units/1,826 units per order = 54.76 orders per year). If the order size was reduced to 1,000 units per order, the hospital system would order 100 times per year. By doing so, it would nearly double the order cost. Thus, the total cost to hold and order inventory would be  

There is an increase in total inventory costs of 3,250 - 2,738.61 = 511.39, an increase of 18.67%, just from ordering fewer units more 

What should the per order cost need to be if1,000 units are ordered each time Using the following formula will help determine this  

H = Holding cost per unit per year Q = Desired order quantity D = Annual demand 1.50 X 1,0002 2 X 100,000 

For orders of 1,000 boxes instead of 1,826 boxes, it is necessary to reduce order costs to 7.50 from 25.00. 

---

Java Virtual Machine miming on the system. Mechanisms like JIT (Just in Time Compiler - parts of the byte code were compiled into machine code) or JNI (Java Native Interface - enables the use of fast libraries resulting from compiled C+ + Code within a Java program) can be used to reduce this characteristic disadvantage. 

Quality in Japan. Japanese economic prowess has been attributed variously to such quahty improvement activities as quahty circles, statistical process control (SPG), just-in-time dehvery (JIT), and zero defects (ZD). However, the real key to success hes in the apphcation of numerous quahty improvement tools as part of a management philosophy called Kaizen, which means continuous improvement (10). 

Just-in-Time. Just-in-time closely followed the reintroduction of SPG into the American workplace. The efficacy of JIT was limited in the United States to an emphasis on keeping component inventories low to reduce the cost of inventory (16). More importantiy, however, JIT should be used to focus management attention on quahty problems. 

By assuming such responsibilities, the control system greatly reduces the incidences where operator error results in off-specification batches. Such a reduc tion in error is essential to implement just-in-time production practices, where each batch of product is manufactured at the last possible moment. When a batch (or batches) are made todav for shipment by overnight truck, there is insufficient time for producing another batch to make up for an off-specification batch. 

The orders for products. Orders are normally received at the corporate level and then assigned to individual plants for produc tion and shipment. Although the scheduling of some products is based on required product inventoiy levels, scheduling based on orders and shipping direc tly to the customer (usually referred to as just-in-time) avoids the costs associated with maintaining product inventories. 

Leaving aside rayon and artificial silks generally, the first really effective polymeric textile fibre was nylon, discovered by the chemist Wallace Hume Carothers (1896-1937) in the Du Pont research laboratories in America in 1935, and first put into production in 1940, just in time to make parachutes for the wartime forces. This was the first of several major commodity polymer fibres and, together with high-density polyethylene introduced about the same time and Terylene , polyethylene tereph-thalate, introduced in 1941 (the American version is Dacron), transformed the place of polymers in the materials pantheon. 

Similarly, hazardous raw material storage should also be minimized, with greater attention being given to just in time supply. Inventory reduction lowers inventory costs, while increasing inherent safety. In determining appropriate raw material inventories, the entire raw material supply chain must be considered. Will the supplying plant have to increase inventories to provide just in time service, and will... 

Just-in-time supply of materials may affect the mode of transportation and could increase risks from the material. For example, drums of a chemical could be stockpiled near a user and not be under the level of control that could be provided by either the supplier or user if the inventory were maintained in a storage tank at one or the other facility. This type of risk should be included when contemplating just-in-time shipments. 

Obviously, the risk of hazardous chemicals is reduced by a minimized inventory using just-in-time procurement. If further inventory reduction is not feasible, additional risk reduction may be achieved by dispersing the inventory to multiple site locations so a release in one location does not allcci other locations of inventory. 

Several methods have evolved to achieve, sustain, and improve quality, they are quality control, quality improvement, and quality assurance, which collectively are known as quality management. This trilogy is illustrated in Figure 2.1. Techniques such as quality planning, quality costs, Just-in-time , and statistical process control are all elements of... 

You should review the contract and the detail specifications to identify whether your existing controls will regulate quality within the limits required. You may need to change the limits, the standards, the techniques, the methods, the environment, and the instruments used to measure quality characteristics. One technique may be to introduce Just-in-time as a means of overcoming storage problems and eliminating receipt inspection. Another technique may be Statistical Process Control as a means of increasing the process yield. The introduction of these techniques needs to be planned and carefully implemented. 

A 100% on-time delivery performance means that your subcontractors must deliver supplies within the time window you specify. Unless you so specify, they do not need to operate a just-in-time system but it is obviously less costly to you if they do. It all depends... 

The key phrase in this clause is or otherwise verified as it allows you to receive product into your company and straight onto the production line if you have verified that it conforms to the specified requirements before it arrives. An example of this is where you have performed acceptance tests or witnessed tests on the supplier s premises. You may also have obtained sufficient confidence in your supplier that you can operate a Just-in-time arrangement but you must be able to show that you have a continuous monitoring program which informs you of the supplier s performance. 

Receipt inspection doesn t need to be a department, a section, a separate room, a full time job for someone, or a particular person. It is a process through which all product must pass, even those received on a Just-in-time basis. Someone should verify that products can pass uninspected. At a customs post some people are stopped, others are waved through all are inspected to some degree - it all depends on the confidence gained by observation. 

Establish an inventory management system that enables FIFO and just-in-time deliveries and shipments. 

To minimize the cost of manufacture, one approach is to minimize the manufacturing throughput" time, sometimes called just in time or the Toyota lean manufacturing process. ... 

Manufactured Components Varies Fast. The just in time requirements of manufactures demand quick dependable deliveries. Truck. 

Intermodal service must improve for corporations that adopted just-in-time inventory in the 1980s and 1990s. Many companies feel that the benefits of keeping minimal stock are worth the premium price paid for faster door-to-door deliveiy by truck, which is a major reason why truck freight revenues remain at more than 80 percent of the country s total freight revenues. 

There is a grave transportation risk in relying on just-in-time production methods. Any freight transportation system breakdown can be catastrophic for companies and nations. If key parts get stuck at the border, or if a natural disaster destroys a highway or a rail line, some factories might have to close down, others write off permanent losses. And if it is a component for an essential product or service, the ripple effect could cost the economy billions of dollars. 

Automobile companies are major users of just-in-time methods, coordinating the delivery of thousands of parts from many different suppliers. A transportation delay of a few hours for one part could shut down an assembly line for half a day. 

These ideas, interestingly described by Goldratt and Cox, provide flexible production and cater for customer requirements. They have become known as just in time (JIT) manufacture, but are often overlooked by many that think that investment in computer-controlled equipment is the only way to go. The concept, simplify before you automate, can provide significant improvements in production and can point the way to later advanced manufacturing where ... 

By minimizing inventories of hazardous material, for example through just in time production the consequences of any accident will inevitably be reduced. As discussed above, storage of MIC was responsible for Bhopal and its use could have been avoided by using an alternative synthetic path phosgene, however, is required in both routes. Sometimes it is impossible (with current knowledge) to eliminate the use of a highly... 

Service - Chemicals are still purchased on a price per kilogram basis. The supplier offers additional services such as just-in-time delivery, direct electronic ordering via an Electronic Data Interface, routine analysis of process streams and advice on chemicals usage, etc. The supplier still has an incentive to sell more chemicals, but does have more to lose should the end user change supplier. 

Rinard dedicated his research to a detailed analysis of methodological aspects of a micro-reactor plant concept which he also termed mini-plant production [85] (see also [4, 9, 10] for a commented, short description). Important criteria in this concept are JIT (Just-in-time) production, zero holdup, inherent safety, modularity and the KISS (keep it simple, stupid) principle. Based on this conceptual definition, Rinard describes different phases in plant development. Essential for his entire work is the pragmatic way of finding process solutions, truly of hybrid character ]149] (miniaturization only where really needed). Recent investigations are concerned with the scalability of hybrid micro-reactor plants and the limits thereof ]149], Expliddy he recommends jointly using micro- and meso-scale components. 

The ability to use just-in-time chemical manufacturing because of ultra-short residence times in microscale reactors. 

---