Production Management Assignment PDF

PRODUCTION MANAGEMENT

PRODUCTION MANAGEMENT
Table of Contents
I. INTRODUCTION.........................................................................................................................1
II. CONTENT...................................................................................................................................1
1. Just In Time Concept........................................................................................................................ 1
1.1. What is just in time (JIT) concept?............................................................................................................1
1.2. How does it work ?...................................................................................................................................2
1.3. Advantages and disadvantages of JIT?....................................................................................................2
1.4. Example of JIT?.........................................................................................................................................3
1.5. Comparison of MRP and JIT......................................................................................................................3
2. TOYOTA VIETNAM............................................................................................................................ 4
2.1 Situation of JIT application in Toyota Vietnam.........................................................................................5
2.2 Production turning point:.........................................................................................................................6
2.3 Applying the JIT system to the operations of the Toyota Group.............................................................8
3. METHODOLOGY.................................................................................................................................. 10
3.1 Framework:.............................................................................................................................................10
3.2 Data collection:.......................................................................................................................................10
3.3 Forecasting:............................................................................................................................................12
3.4 Aggregating Planning:.............................................................................................................................12
3.5 Inventory Management:.........................................................................................................................14
III. CONCLUSION.......................................................................................................................17
IV. INDIVIDUAL ASSESSMENT...................................................................................................17
V. REFERENCES............................................................................................................................17

PRODUCTION MANAGEMENT
I. INTRODUCTION
In a market economy, competition between enterprises is an inevitable factor. In order to
survive and develop, each enterprise must choose for itself a core competitive element and
enhance its competitiveness in all aspects. With the current market economy, price is no longer
the decisive factor, so senior managers focus on reducing costs and improving product quality of
their businesses. The success in strategies of enterprises depends a lot on the assessment,
creation and development of human resources from the production function to creating a
production system as well as working an effective individual. Besides, customer service is also an
equally important factor to create customers' confidence in the company's products.
JIT (standing for Just-in-time) is a management method which is widely applied in current
factories because of many benefits that its converted. Applying JIT production system helps
factories to have a stable production level, low inventory volume, solve problems quickly,
therefore the factories always meeting customer demand, saving costs and increase business
performance of enterprises.
Therefore, our research for this topic will help you more understand about Just In time concept
through VietNam Toyota Company
II. CONTENT
1. Just In Time Concept
1.1. What is just in time (JIT) concept?
JIT was originally formed in Japan as a response to the country’s limited natural resources,
leaving little room for wastage. Today, Just in Time systems are used by many businesses, and it
has influenced related lean inventory management techniques like IBM’s Continuous Flow
Manufacturing (CFM). The rise of drop shipping has made JIT inventory management more
appealing for retailers, as it allows them to sell a product before buying it, then purchase the
item from a third party and have it shipped directly to the customer
Just in time is a common inventory management technique and type of lean methodology
designed to increase efficiency, cut costs and decrease waste by receiving goods only as they are
needed.
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PRODUCTION MANAGEMENT
1.2. How does it work ?
JIT is a production and inventory system in which material are purchased and units are produced
only as needed to meet actual customer demand. In Just In Time manufacturing system
inventories are reduced to the minimum and in some cases they are zero.
JIT works in 3 types of inventories:
a) Raw material: inventories provide insurance in case supplier are late with deliveries
b) Work in process: Inventories are maintained in case a work station is unable to operate
due to a breakdown or other reason
c) Finished goods: inventories are maintained to accommodate unanticipated fluctuations
in demand.
For JIT manufacturing to succeed, companies must have steady production, high-quality
workmanship, glitch-free plant machinery, and reliable suppliers.
1.3. Advantages and disadvantages of JIT?
JIT inventory systems have several advantages over traditional models. Production runs are
short, which means that manufacturers can quickly move from one product to another.
Furthermore, this method reduces costs by minimizing warehouse needs. Companies also spend
less money on raw materials because they buy just enough resources to make the ordered
products and no more.
 no items in the production process fall into a state of zero, waiting for processing, no workers
or equipment to wait for inputs to operate.
- Minimize the phenomenon of inventory, capital stagnation.
- Reduce warehouse area.
- Increase product quality.
- Reduce scrap, defective products.
- Increase productivity by reducing waiting times.
Many definitions of Just in Time and Lean itself will state that waste reduction is the aim; waste
reduction, however, is actually something that you achieve through trying to implement the flow
and other improvements required to achieve just in time and not an end in itself.
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