Reference no: EM132821490
Taiichi Ohno's JIT/Lean system, with the elimination of practically all inventories, and using demand pull (kanban) to coordinate the flow of materials and assemblies through the production process, has been resisted by some on the basis that if even the smallest part in the system failed to appear or perform when needed, the entire process must come to a halt. Ohno proclaimed that this "weakness" of JIT/Lean was in fact its power since it removed all safety nets, and, with the production line stopped, forced the entire organization to focus on resolving the root cause of the problem so that it never recurs. CourseKar Industries manufactures golf carts. Their product is reasonably successful, but competing manufacturers sell their carts for less than CourseKar can, and yet have fewer product warranty and reliability problems. As a result, CourseKar's market share has been slipping, and the Board of Directors is calling for action. Management knows that its competition has been using JIT/Lean production techniques for several years. But while they find JIT/ Lean appealing for eliminating waste and improving quality and productivity, they are concerned that conversion to JIT/Lean, with its precariousness of having little or no inventory of materials on hand would be too great a risk. In order to lower production costs and improve quality, management is leaning toward a hybrid JIT/ Lean system instead. This system will employ the principles and methodology of JIT/Lean, but will maintain buffer stocks of materials and assemblies to prevent every part delivery problem or malfunction on the line from shutting down the production process.
Discussion Questions:
1. If something as trivial as a missing screw or a broken tool can stop a JIT/Lean production line, how could Ohno consider that to be a power of the concept?
2. Discuss what would likely happen if a needed screw or a working tool is missing from a traditional mass production line.
3. Discuss the implications of a JIT/Lean production system that employs buffer stocks or materials and parts.
4. Discuss the potential for a nonmanufacturing organization to benefit from employment of JIT/Lean.