Exam 15: Just-In-Time Manufacturing and Lean Production

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JIT has evolved from lean production concepts over the last several years.

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A company decides to establish and EOQ for an item. The annual demand is 400,000 units each costing $8 to run, setup costs are $32 , and inventory carrying costs are 20%. Calculate the EOQ in units.

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4000 units

Supplier selection should ensure the supplier has:

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D

Define quality at the source.

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The emphasis in JIT is on achieving the plan - no more, no less.

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Key factors in supplier partnering include:

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Discuss what constitutes value to the end user?

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Questions to be answered in a JIT environment include:

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A successful JIT environment can be achieved without the cooperation and involvement of everyone in the organization.

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What are the major elements or characteristics of a JIT environment. Discuss.

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A company decides to establish and EOQ for an item. The annual demand is 400,000 units each costing $8 to run, setup costs are $32 , and inventory carrying costs are 20%. Calculate the number of orders per year.

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For a process to continue to produce the required quality, machinery must be maintained in excellent condition.

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A company produces a line of golf putters composed of three models. The demand for model A is 500 per month, for B is 400 and for C is 300. What would be the mixed model sequence if some of each were made each day?

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The pull system starts at the beginning of the line and pulls products from the preceeding operation as needed.

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A company decides to establish and EOQ for an item. The annual demand is 400,000 units each costing $8 to run, setup costs are $32 , and inventory carrying costs are 20%. Calculate the cost or ordering, cost of carrying inventory, and total cost.

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Alternatives to cards for indicating production and movement of materials include:

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The major effect that JIT has on forecasting is increasing lead time.

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Discuss total employee involvement in JIT and the changing role of top management.

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Mixed- model scheduling means:

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If good schedules are to be maintained and a company is to develop a JIT environment, it is vital to have good, reliable suppliers.

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