I. Introduction
Today’s global economy, calls for privately owned companies and Government Agencies to identify ways to reduce and/or cut costs through economic efficiencies. Specifically within the Federal Government, several agencies have been tasked with pinpointing areas that have caused a spike in costs. Overall, it is believed that transaction reductions related to logistics and supply chain management to be considered the best viable approach to realizing cost-efficiencies.
Privately owned and operated companies are also recognizing that in order to reduce their logistics and supply chain management costs, they will have to address their current inventory management and operation approaches. Similarly, both entities have begun re-examining …show more content…
– Understanding the Concept ', 2012). Rother & Shook identify the value provided from a customer’s perspective as follows; identify the value in activities used to make products; understand the process and get rid of an obstacles to it; initiate only when necessary; and continuously refine processes to foster efficiency, improve cycle time and quality and cut costs (Rother & Shook, 1999). “Lean is the concept of efficient manufacturing or operations which grew out of the Toyota Production System in the early 20th century” (Learn Lean Logistics, 2012). Due to minimal resources and shortages, the Japanese employed a production process that worked with minimum waste and spread to all manufacturing areas, new product development and supply chain management ( 'What is Lean Logistics? – Understanding the Concept ', …show more content…
Just In Time (JIT)
Inventory control systems are tools utilized by companies not only to minimize inventory costs but also to ensure that adequate amount of inventories are available when needed. The objective is for a company to meet production targets and ultimately, buyers ' demand. As noted by Keown et al. (2002), JIT is more than just an inventory control system; it is a production and management system.
Just-in-time (JIT) was pioneered by the Japanese and is based on an integrated set of activates that are designed to achieve high volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed- elimination of waste. Thus, JIT is used in manufacturing production practices and is part of the processes of "lean manufacturing" (Jacobs & Chase, 2010). In the basic sense, JIT means producing what is needed when needed and nothing more.
Under the JIT system, the company estimates the demand for the inventory and determines the period between the date an inventory is ordered and the date it is received. This is to ensure that inventory only reaches the company when needed or just in time that it is
Today’s global economy, calls for privately owned companies and Government Agencies to identify ways to reduce and/or cut costs through economic efficiencies. Specifically within the Federal Government, several agencies have been tasked with pinpointing areas that have caused a spike in costs. Overall, it is believed that transaction reductions related to logistics and supply chain management to be considered the best viable approach to realizing cost-efficiencies.
Privately owned and operated companies are also recognizing that in order to reduce their logistics and supply chain management costs, they will have to address their current inventory management and operation approaches. Similarly, both entities have begun re-examining …show more content…
– Understanding the Concept ', 2012). Rother & Shook identify the value provided from a customer’s perspective as follows; identify the value in activities used to make products; understand the process and get rid of an obstacles to it; initiate only when necessary; and continuously refine processes to foster efficiency, improve cycle time and quality and cut costs (Rother & Shook, 1999). “Lean is the concept of efficient manufacturing or operations which grew out of the Toyota Production System in the early 20th century” (Learn Lean Logistics, 2012). Due to minimal resources and shortages, the Japanese employed a production process that worked with minimum waste and spread to all manufacturing areas, new product development and supply chain management ( 'What is Lean Logistics? – Understanding the Concept ', …show more content…
Just In Time (JIT)
Inventory control systems are tools utilized by companies not only to minimize inventory costs but also to ensure that adequate amount of inventories are available when needed. The objective is for a company to meet production targets and ultimately, buyers ' demand. As noted by Keown et al. (2002), JIT is more than just an inventory control system; it is a production and management system.
Just-in-time (JIT) was pioneered by the Japanese and is based on an integrated set of activates that are designed to achieve high volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed- elimination of waste. Thus, JIT is used in manufacturing production practices and is part of the processes of "lean manufacturing" (Jacobs & Chase, 2010). In the basic sense, JIT means producing what is needed when needed and nothing more.
Under the JIT system, the company estimates the demand for the inventory and determines the period between the date an inventory is ordered and the date it is received. This is to ensure that inventory only reaches the company when needed or just in time that it is