JIT works in three in three Benefits
Benefits of MRP
- Funds that were tied up in inventories can be used elsewhere.
- Areas previously used to store inventories can be used for other more productive uses.
- throughput time is reduced, resulting in greater protential output and quicker reponse to customers.
- Defect rates are reduced, resulting in less wasted and greater customer satifaction.
- Reduced inventory with fewer(none) shortages
- Improved customer services
- improved direct labor productivity
- Reduce pruchasing cost
- Reduce Traffic cost
- Reduce Overtime
- Reduced Obsolescence
- Having the numbers to run the business
- Having accountability throughout the organization
- Improve Quality of Product Life
IS A PRODUCTION AND INVENTORY CONTROL SYSTEM IN WHICH MATERIALS ARE PURCHASED AND UNITS ARE PRODUCED ONLY AS NEEDED TO MEET ACTUAL CUSTOMER DEMAND.
is a production planning, scheduling and inventory control system used to manage manufacturing processes
Disadvantage
- Implementing Procedures can involve a major overhaul of buisness systems which may be difficult and expensive to introduce.
- Opens businesses to a number of risks, notably those associated with the supply chain.
- Inaccurate information as a result of inaccurate intial data and failure to update on Raw Materials and components on a regular basis
- Produce serious problems with output, thus causing massive delays in the delivery of finished products to expecting clients.
- Missing parts, Raw Material and components due to the wrong quanities order from the suppilers.
MRP vs. JIT
THANK YOU!
THE "A" Team