Operation management exam Essay Example | Topics and Well Written Essays - 1000 words

Operation management exam - Essay Example The main objective of the concept is to optimize from the production processes while reducing on wastage. The concept aims to reduce lead time and batch size and increase the throughput time. The implementation in company results to efficient running of the processes perfectly aligned to the quantity demanded. The history of the concept dates back in Japan where it was recognised as a means of production. The concept was initially known as the Toyota production system since it was practised in order to compete with the automobile industry in America as explained by Coyle, Bardi and Langley (2009). It was observed that in America, production was based on the Economic Order Quantity (EOQ) however, the method could not work in Japan as the domestic demand was lower and there was demand for different models in small quantities. This led to the introduction of the concept that was based on elimination of waste resulting from inventory costs, processing time , transportation, time spent waiting and excess production. The implementation of concept saw the rise of the industry and realised more profits however the system needs employee participation and good management for it to yield benefits to the company. The JIT manufacturing system benefits a company in several ways the most important are the reduction of inventories. Customer relations improves as the company reduces the throughput time resulting to greater output and fast response to the customers demands and also minimizes the rates of defects leading satisfaction. There is reduced setup time that allows the company to eliminate the stock for change over time. The system simplifies inventory management as there is improved flow of goods from the warehouse. Schedules of working hours, production and supply are synchronized with the demand and optimal inventory amounts.