Dtech Unit 10

Just in Time (JIT)

A situation where a company does not allocate space to the storage of components or completed items

Just in Case (JIC)

A company produces a small stock of components or products and stores them as inventory. This is Just-Incase a rush order comes they have  ready supply.

Lean Production

Lean production considers product and process design as an ongoing activity and not a one-off task. It should be viewed as a long-term strategy that focuses on continual feedback and incremental improvement.

10 Principles of Lean Production

Elimination of waste from various areas (JIT)
Minimizing inventory
Maximizing production flow a
Kaizan
Respect for workers
Pulling production from customer demand
Designing for rapid changeover
Creating a reliable partnership with suppliers
Meeting customer requirements
Doing it right the first time

Value Stream Mapping

Value stream mapping is a lean production management tool used to analyze current and future processes for the production of a product through to delivery to the consumer.

Role of the Workforce

Training

Lead Time

Lead time refers to the time quoted to customers (usually in days or weeks) between the date of purchase and the date of delivery.

The 5 S’s

Sorting

The 7 Wastes

Overproduction

CIM

A system of manufacturing that uses computers to integrate the processing of production

Cost-effectiveness

The most efficient way of designing and producing a product from the manufacturer’s point of view.

Value for Money

The relationship between what something

Fixed Costs

The costs that must be paid out before production starts

Variable Costs

Variable costs are costs that change in proportion to the goods or service that a business produces

Break-even

It is the point of balance between profit and loss. It represents the number of sales of a product required to cover the total costs (fixed and variable).

Pricing Strategies

Price-minus