Advanced - Just In Time Strategy(0047)

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 crisis, 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 number of jobs waiting to be processed at a given machine, and improving the coordination and cooperation between successive processes. Delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers 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 supplier quality assurance and implement a zero defects quality program. We currently have far too many errors that lead to defective items and therefore, 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 production 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 suppliers to reduce their mistakes.

A:

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

Key Vocabulary

obligate

verb

make a person do something because it is the right thing to do

cost efficient

phrase

cheap, not expensive

redundancy

common noun, plural

layoff, the ending of workers' employment

implement

verb

put a plan into action

lead time

common noun, singular

the time between the beginning of a process and its end

efficiency

common noun, singular

the ability to produce something more quickly

work station

common noun, plural

an area where a person works and does his job

given

Adjective

used to refer to a specific time, place or thing

defective

Adjective

having a mistake or error that makes something not perfect

defect

common noun, plural

a mistake or error that makes something not perfect

Supplementary Vocabulary

inventory

common noun, non-variable

supply of goods stored in a place

carrying cost

phrase

the cost of holding inventory

warehouse

common noun, singular

large building where products or goods are stored

stock

common noun, non-variable

the supply of goods for sale, or available

bottleneck

common noun, singular

something that slows a process down