047 -- Advanced - Just In Time Strategy

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I called this meeting today in order to discuss our manufacturing plan. As I’m sure you’re all aware, with the credit crunch, and the global financial cri- sis, we’re obligated to look for more cost efficient ways of producing our goods. We don’t want to have to be looking at redundancies. So, we’ve outlined a brief plan to implement the just-in-time philosophy.

We have two basic points that we want to focus on. First of all, we want to reduce our lead time. C: Why would want to do that? I think this is not an area that really needs to be worked on.

Well, we want to reduce production and delivery lead timesfor better overall efficiency.

Right, production lead times can be reduced by moving work stations closer together, reducing queue length, like for example, reducing the num- ber of jobs waiting to be processed at a given ma- chine, and improving the coordination and coop- eration between successive processes. Delivery lead times can be reduced through close cooper- ation with suppliers, possibly by inducing suppli- ers to locate closer to the factory or working with a faster shipping company. C: I see… That makes sense.

The second point is that we want to require sup- plier quality assurance and implement a zero de- fects quality program. We currently have far too many errors that lead to defective items and there- fore, they must be eliminated. A quality control at the source program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop pro- duction when something goes wrong. C: I’m with you on this one. It’s essential that we reduce these errors; we’ve got to force our suppli- ers to reduce their mistakes.

Exactly. Well, let’s look at how we’re going to put this plan into action. First...(fade out)