Elimination of waste - stock management, Microeconomics

Elimination of waste - Stock Management

Here is a definition of the elimination of waste:

Anything other than the minimum amount of equipment, material, parts and working time which is absolutely essential to production. 

Reported in Monden (1983) 

This means: no surplus, no safety stock, no de-coupling inventories. If you can't use it now, don't make it now! These ideas have led to the goals listed below. 

Zero inventory (ZI)  - Hold only enough to work on and restrict the level of additional inventory whenever possible. 

Zero set up times - Reduce to an absolute minimum so that handling small batches becomes more efficient. The Japanese achieve this by concentrating on customising machinery to make the necessary adjustments quicker and easier to do, and also by increasing motivation to make a quick changeover. Speed is not only required but the absence of buffer stocks highlights the fact that the set up time is crucial to keep production moving. 

Zero lot sizes - Handle only one at a time. Don't use the EOQ approach . 

Zero material handling - Handle only one. Reduce the need for sophisticated equipment. 

Zero surging - Don't disrupt the flow due to overloads. 

Zero breakdowns - Plan for prevention. 

Zero lead times - Reduce to a minimum. The JIT philosophy completely rejects the EOQ theory. In its place, an approach to improve material flow has been substituted. 

There are seven basic elements to JIT philosophy, we will consider the first five of them here. Remember that the objective is to eliminate waste: each approach is directed towards improving material flow efficiency and eliminating non-value activity. 

  • ? focused factories
  • ? group technology (GT)
  • ? Jidoka (quality at source)
  • ? Kanban (JIT production)
  • ? uniform plant loading
Posted Date: 3/14/2013 6:54:41 AM | Location : United States







Related Discussions:- Elimination of waste - stock management, Assignment Help, Ask Question on Elimination of waste - stock management, Get Answer, Expert's Help, Elimination of waste - stock management Discussions

Write discussion on Elimination of waste - stock management
Your posts are moderated
Related Questions
How to find quantity supplied given just the price

characteristics and models of oligopoly by Sweezy,cournot and edgework

Pre-Funded Pension: A pension plan in that funds are invested and accumulated throughout an individual's working life in order to pay for subsequent disbursement of pension benefit

Question 1: i) Use a simple human capital model to explain the rationale for undertaking higher education. ii) Why do some people vary significantly in the amounts of human

Short run production period and long run production period: The short run is a period of production during which some factors of production are fixed and some too are variable

The market demand for brand X has been estimated as Qx=1500-3Px-0.05I-2.5Py+7.5Pz Where Px is the price of brand X, I is per-capita income, Py IS the price of brand Y, and Pz is th


What are the 2 approaches in which results into a higher satisfaction?

The Market for Pool Rafts The market for pool rafts in Playa del Largarto is competitive and includes no transaction costs.  Five suppliers are willing to sell pool rafts in P

please may you explain this concept