JIT Manufacturing

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  • Created by: Belleidu
  • Created on: 17-01-17 10:27

JIT Manufacturing

AdvantagesGetting Started

  • Cuts holding costs and increases use of factory space.
  • Capital that could have been used for stocks is now used more efficiently in a different area of business.
  • Improves efficiency of flow by reducing time between paying for supplies and receiving payment from customers.
  • Close contact with suppliers, leads to better supplier relationships.

Disadvantages

  • Customers have to wait for goods to be made and some may prefer to buy from bulk.
  • Costs of ordering cold increase as so many small orders are made, rather than just one large order of supplies.
  • Requires reliable suppliers ad transport systems.

Evaluation

In conclusion JIT manufacturing may not necessarily be a better option in comparison to the forms of flow production, as the cost can sometimes be to high, customers may or may not be willing to wait for when the goods are made and may prefer to just order from batch, however less factory space is taken up and the capital that is earned is not used in the payment of stocks and are instead used for something more efficient.

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