047 -- Advanced - Just In Time Strategy

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a

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.

b

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.

b

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

a

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.

b

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.

a

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