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Plants : Numbers changes occur about the plant which include plant layout multi function workers, demand pull production kanbans self inspection MRP ( material requirements planning ) and MRP II ( manufacturing resource planning ) and continuous improvement.
Systems : Systems within an organization refer to the techonology and processes used to link plan and co ordinate the activities and materials used in production. Two such systems are MRP ( materials requirement planning and MRP II manufacturing resource planning). The system designed should allow production smoothing. It can be achieved by reducing setup time and thereby lowering lot size with reduced set up tome and lot size there will be significant reduction in need for storage space material handling equipment inventory and support personnel.
Standardization of job leads to more uniform output rate. This includes standard cycle times standard routing and standard quantities in containers holing work in process.
The use of total quality control is an additional element of JIT. JIT quality involves quality at source which means there is an emphasis on producing products correctly the first time.
Existing machine Purchased 3 years ago Cost=22,000 Installation= 3000 Depreciation=3 years using the MACRS - 5 year Recovery schedule Current market value=10,000
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