Lean Production System-(JIT) Just In Time Inventory - Research Paper Example

n.d., par. 1). In HMC’s situation, therefore, JIT inventory is perceived to be a crucial part of the lean production system whereby the identified goals contain the need to focus on maximizing the use of the most appropriate inventory levels which are consistent with the strategies used. Explanation on How JIT would Help HMC’s Subassembly Area The current situation at HMC’s subassembly area is as follows: (1) an increase in outsourcing brought greater demands for assembly operations; (2) management was reported to have been experiencing difficulties in allotting space for assembly operations; (3) there was no permanent and enough space for assembly operations as case facts indicate that management often located the assembly areas in any location where there was open floor space; (4) with anticipated demands for increased assembly operations, HMC finds itself experiencing extreme cases of excess materials or the need to expedite materials from suppliers at the very last minute to prevent from missing a customer’s deadline; (5) the original plant layout did not include a space of assembly operations; thereby current assembly layout causes inefficiencies and increases costs and wastes in production time and resources.

The JIT would definitely help the sub-assembly area by recommending strategies that would improve sourcing, delivery and level (as well as costs) of inventories and improving the lay-out for production, among others. As emphasized, “JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line.

To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit” (Just-In-Time (JIT) Production, n.d., par. 2). By eliminating the need to movement of people and materials (layout); observing and calculating the most effective inventory level; as well as observing the goals of JIT partnerships (“elimination of unnecessary activities; elimination of in-plant inventory; elimination of in-transit inventory; and elimination of poor suppliers) (Ahmadi, n.d., p. 13), JIT would have helped HMC in improving the subassembly area.

Explanation of Impact These Actions on the Objectives Established As one has explained, the JIT goals are consistent with the goals that were established by HMC, to wit: