Question- Give the steps in cycle of continuous improvement for just-in- time delivery.

Ans.

Steps in Cycle of Continuous
Improvement for Just-in-Time Delivery

Step I : Design : The JIT process begins with a review of the product design, process design, personnel and manufacturing planning. Then plans are put into place to eliminate disruption, minimize waste and build a flexible system.

Step II : Manage : A Total Quality Management review ensures there is continuous improvement throughout the process. A management review defines workers' roles and responsibilities, defines and measures statistical quality control, stabilizes schedules and checks out load and capacity schedules and levels.

Step III : Pull : Educate the team using signaling methods. Review lot size policies and reduce lot sizes.

Step IV : Establish : Vendor relationships are vital to the success of JIT. Review vendor lists. Settle on preferred suppliers, negotiate contracts, discuss lead times, delivery expectations and usage metrics and measures. Learn how to make the most of them in the supply chain.

Step V : Fine-tune : Determine inventory needs, policies, controls and reduce inventory movements.

Step VI : Build : Inform your team about the skills and capabilities it needs to complete its work and conduct team education and empowerment sessions to educate them.

Step VII : Refine : Reduce the steps by refining, standardizing and reviewing the entire process.

Step VIII : Review : Define and implement quality measures and metrics and conduct a root cause analysis of any problems. Emphasize improvements and track trends to improve every aspect of JIT.

Companies often adopt JIT delivery as a cost-cutting strategy. When implemented correctly it can create more value than traditional methods that require more extensive inventories. Just-in-time delivery reduces waste, improves cash flow, increases flexibility, optimizes human resources and encourages team empowerment. Companies that are successful at JIT inventory management maximize profits by keeping investment in stock as low as possible. They use data to manage inventory. They use an ERP system to gather information on shipping, customer satisfaction, loss prevention, warehousing, purchases, reorders, goods in storage, receiving stock turnover and more.

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