What is a benefit of a just-in-time (JIT) system?
Question: 1.Which of the following is a benefit of a just-in-time (JIT) system? Multiple Choice Production workers are always busy. Fewer field warranty visits are required. Scrap costs are reduced.
What is the purpose of a JIT system?
JIT organizes operations to occur just at the time needed, Production materials are not bought in advance and kept in stock, but are delivered to the production process just as they are needed. Stocks of material are virtually eliminated, and extension of MRP. What are the effects of JIT? JIT affects inventories.
What are the advantages of JIT production strategy?
Apart from the improvement in comparative metrics, the JIT production strategy is advantageous to a company's profitability in many other ways. Sales-contingent production means lower costs for both raw materials and labor.
What is just in time (JIT)?
2.A manufacturing company has implemented just in time (JIT) into their process. JIT is part of: process re-engineering. the lean business model. the theory of constraints.
Which is a benefit of a JIT just-in-time system?
JIT inventory management increases productivity by reducing the time and resources required for manufacturing. This ensures faster production and shorter production runs. You can also implement product changes quickly as there is less raw material stock.
Which of the following is an advantage of JIT quizlet?
WASTE REDUCTION- a faster turn around if stick prevents goods becoming damaged or obsolete while sitting in storage reducing waste. This again saves money by preventing investment in uneccessary stock, and reducing the need to replace old stock.
Which of the following is true of just-in-time JIT )?
Which of the following is true of Just-in-Time (JIT) Management? It is a system in which the company produces products only after receiving an order. Which of the following is true of service companies? Service companies carry no inventories of products for sale.
Which of the following is not a benefit of JIT?
8. Which of the following is not a benefit of JIT? Explanation: Reduction in throughput time, improvement in quality, and improvement in productivity are benefits of JIT. High reliance on suppliers is a disadvantage of JIT.
Which of these is an important disadvantage of just-in-time inventory management quizlet?
Disadvantages of Just-in-Time (JIT) Stock management systems: 1. Any failure to receive supplies of materials or components in time caused by, for example, a strike at the supplier's factory, transport problems or IT failure, will lead to expensive production delays.
What is just-in-time inventory quizlet?
The just-in-time (JIT) inventory system is a management strategy that minimizes inventory and increases efficiency. ... Just-in-time (JIT) manufacturing is also known as the Toyota Production System (TPS) because the car manufacturer Toyota adopted the system in the 1970s.
Which of the following pertains to a just-in-time production system?
The correct answer is option (d). Direct materials and conversion costs are combined into a raw and in-process inventory account to a just-in-time production system.
Which of the following is the most important in adopting a just-in-time system?
The most important benefit of JIT is the elimination of raw material, inventory and product storage costs. Traditionally, raw materials and inventory of finished goods were considered assets. This notion has changed because of JIT and now inventory is considered as waste or dead investment, incurring additional costs.
How does JIT affect inventories?
JIT affects inventories. The main purpose of stock is to allow for short term mismatch between supply and demand. Independent demand inventory system allows the mismatch using stocks high enough to cover any expected demand. Independent demand systems can have very high stock. If the mismatch can be completely eliminated, so can stocks. This is the basis of JIT systems
How many questions are in JIT?
Just in time (JIT) study guide by Jonathan_Comeau8 includes 11 questions covering vocabulary, terms and more. Quizlet flashcards, activities and games help you improve your grades.
What are the benefits of reduced lead times?
Reduced lead times, shorter time to make a product, higher productivity, higher equipment utilisation, simplified planning and scheduling, less paperwork, improved quality of materials and products, less scrap and waste, better morale in the workforce, better relations with suppliers, emphasis on solving problems in process.
What is the difference between push and pull?
Push ignores what the next station is doing. Pull waits for the request.
Why is JIT production important?
Apart from the improvement in comparative metrics, the JIT production strategy is advantageous to a company's profitability in many other ways. Sales-contingent production means lower costs for both raw materials and labor. If a business is not looking to produce a backlog of goods for sale, it need only purchase those materials required ...
How does the JIT strategy boost profitability?
How the JIT Strategy Boosts Profitability. The JIT production strategy has an important effect on other measures of corporate efficiency and profitability. Lower inventory means a reduced total asset figure on the balance sheet, all else being equal.
What is inventory turnover ratio?
The inventory turnover ratio is a metric used in corporate finance to estimate how efficiently a company is selling its products. By dividing the total cost of goods sold (COGS) by the average inventory over a given period, the inventory turnover ratio reflects the number of times the company has sold its total average inventory.
What is just in time production?
Just-in-time production (JIT) is a business strategy in which a manufacturer produces each item as it is ordered, rather than keeping an extensive amount of surplus products on hand. The chief benefit of the strategy is that it allows businesses to ensure that there is always a buyer for any item produced, keeping inventories low.
Why are inventories lower?
Lower inventories make a company look more efficient and also boosts the return on total assets (ROTA), a key measure of how well a company uses funds to boost profits.