Exam 6: Just-In-Time Lean Purchasing

The switch to a JIT system presents formidable challenges. _________ must be prepared to change their behavior when their customers are using the JIT system.

Rule Three (3) of the dual card kanban states: Containers for each specific part are ___________, and they are always filled with the same (ideally, small) quantity.

Many companies turned to JIT looking for a relatively _________________ that would yield substantial short-term benefits. Over the years, these companies have come to realize the tremendous effort and commitment required to make a JIT system run smoothly.

It is well documented that JIT reduces physical inventory level. Reductions in physical inventory will also have a favorable impact on: Reduced insurance premiums associated with the storage of inventory.Reduced inventory holding costs.Reduced labor cost in store rooms and material handing costs.Reduced clerical and administrative costs.Reduced waste from the manufacturing process.Reduced obsolescence costs.Reduced deprecation of handling and storage equipment.ach of the cost savings will result in a leaner more profitable operation.

The role of the purchasing function in a manufacturing organization has become increasingly important. The _____________ production control system focuses on reducing both raw materials and work-in-process inventories.

One of the most crucial elements of the ____________ system is small lot sizes.

Some of the common problems associated with implementing the JIT system are as follows with one exception. Which one is the exception?

comprehensive JIT progress report indicates that supplier costs were reduced by ________ when they adopted the JIT system in cooperation with their customers.

ffective development and implementation of the just-in-time system requires integration of important functional areas such as ______________________.

Traditionally, long and infrequent production runs have in the past been considered beneficial for the overall productivity of a manufacturing organization.However, long production runs usually lead to ____________ of raw-material and finished-goods inventories.

The reliability of supply is a critical consideration in the selection of _______ suppliers.

In its simplest form, "the manufacturing process" is a composition of the material flows. Just-in-time (JIT) is designed to manage the flow of ________________________ .

The key lean principles focus on __________, ____________, ____________, and ___________. All of these key business principles have a direct effect on the purchasing function.

The JIT progress report mentioned in the textbook indicates that supplier quality improved by ______ percent since the JIT system was adopted.

ew buying firms, however, work closely with _________ to develop long-term relationships that provide for highly structured _______________ that lower costs for the buying firm.

The following practices are considered essential for a comprehensive JIT implementation: 1. Uniform production (also known as heijunka) 2. Quick set times 3. Small lot sizes 4. Short lead times

The JIT philosophy inherently attempts to reduce lead times for order completions. Under traditional purchasing practices, the lead time is made up of all the following components with one exception. Which one is the exception?

Very often, resistance is encountered because the employees are required to change their _____________, or because they interpret the new system as being _____________ jobs.

In order to obtain ________ lot sizes for production, the order quantity size needs to be _________ and corresponding delivery schedules need to be made more _________.

In a ____________, removing an end item (or a fixed lot of end items) triggers the order release, by which the flow of materials or components is initiated. In contrast, ____________ allow for the production or material flow in anticipation of future demand