The chief executive officer (CEO) of Lordsland Inc. has justreturned from a mana

Question

The chief executive officer (CEO) of Lordsland Inc. has justreturned from a management seminar describing the benefits of thejust-in-time philosophy. The CEO issued the followingstatement after returning from the conference:

“This company will become a just-in-time manufacturingcompany. Presently, we have too much inventory. To becomejust-in-time we need to eliminate the excessinventory. Therefore, I want all employees to begin reducinginventories until we are just-in-time. Thank you for yourcooperation.”

How would you respond to the CEO’sstatement?

Explanation / Answer

Just-in-time is not a matter of just reducing the inventories toits lowest level. There are lot of other things needs to beconsidered. The planning process should include a. Optimize materials flow from the suppliers throughout theproduction process. b.Implementation of Total Quality Management (TQM) tominimize scrap and eliminate wastes. c.Evaluating the manufacturing capacity requirements for materialrequirement planning(MRP)              Just-in-time is based on lot ofoutsiders(suppliers,producers etc..) involvement.So, themanufacturing company needs to prepare a list of outsiders andtheir role in the process before implementation of JIT. Therefore, the CEO's decision of reducing just the inventories isnot the right way to start with.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.