Reference no: EM132629584

As you know, lean operating systems focus on quick and efficient response in designing and getting goods and services to market, producing to customer demand and delivery requirements, responding to competitors' actions, collecting payments, and addressing customer inquiries or problems. Of course the most effective way of increasing speed and response is to synchronize the entire value chain. What I mean is that not only are all elements of the value chain focused on a common goal but that the transfer of all physical materials and information are coordinated to achieve a high level of efficiency.

Now a JIT system is based on the concept of pull rather than push. In a JIT system, a key workstation (ex: final assembly) withdraws parts to meet demand and therefore provides real-time information to preceding workstations about how much to produce and when to produce to match the requirements. JIT operating systems prohibit all process workstations from pushing inventory forward only to wait idle if it is not needed.
I'm sure you folks can understand that this system will dramatically reduce the inventory required between stages of the production process, this greatly reducing costs and physical capacity requirements.

Q. Can nonmanufacturing organizations benefit from employment of JIT/Lean?