Corporate policy Of MM/JIT/KANBAN

Corporate policy Of MM/JIT/KANBAN

Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs In order to achieve JIT the process must have signals of what is going on elsewhere within the process. This means that the process is often driven by a series of signals, which can be kanban Kanban), that tell production processes when to make the next part. Kanban are usually ‘tickets’ but can be simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization’s return on investment quality, and efficiency. Some have suggested that “Just on Time” would be a more appropriate name since it emphasizes that production should create items that arrive when needed and neither earlier nor later.

Integrated Materials Management

Various functions served by materials management include the material planning, purchasing, receiving, stores, inventory control, scrap and surplus disposal. All these functions can have separate working norms including the one for performance.
Efficient management of input materials is of utmost importance in a business organization for maximizing materials productivity, which ultimately adds to the profitability of the organization.
This requires well coordinated approach towards various issues involving decision making with respect to materials.
All the materials related activities such as material planning & indenting, purchase systems & procedure, variety reduction through standardization & rationalization, reducing uncertainties in demand & supply, handling & transportation, inspection, proper storage & issue of materials to the internal customers, inventory management, vendor management & finally disposal of obsolete, surplus & scrap materials etc. taken together is termed as Integrated Materials Management.
For example, while inventory manager would like to have minimum level of inventory to show of his performance, purchasing manager would like to place bulk orders in order to lessen his work load and show discounts as reductions. Both of these acts may be little contradictory from the organizational point of view. That is if some of the functions were to be handled separately, a conflict of interests may occur.

Just-in-time (JIT)

Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated carrying costs. In order to achieve JIT the process must have signals of what is going on elsewhere within the process. This means that the process is often driven by a series of signals, which can be Kanban (Kanban) that tell production processes when to make the next part. Kanban are usually ‘tickets’ but can be simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization’s return on investment quality, and efficiency. Some have suggested that “Just on Time” would be a more appropriate name since it emphasizes that production should create items that arrive when needed and neither earlier nor later.