The impact of capacity planning when trying to implement JIT Essay Example

up with demand, implementing JIT within a short time frame will be challenging. Capacity decisions are strategic and typically measured as the volume of output per period of time. AP must consider capacity for the following reasons:

It is necessary to have enough capacity to fulfill customers' demands promptly.

Capacity is a factor that affects the cost efficiency of operations.

The scheduling system is impacted by capacity.

Capacity creation is an investment that requires effort to change the mindset of older staff. To start, it is recommended to work in smaller cells in the production area and gradually expand. Suppliers will also need to adjust their routine to accommodate the company's needs once Just-in-Time (JIT) is implemented. This includes changing delivery times. Unfortunately, AP did not give Stuart enough time to implement the new structure needed for the company's increasing business. Implementing JIT takes time to run smoothly, and training new staff will pose a challenge when the business grows. However, with time and proper training for all workers, capacity planning will be effective. It is also important to note that the management structure should change slightly to ensure a smooth flow of materials, as the reporting structure of the firm is currently not appropriate for JIT implementation.

The main characteristics of MRP and JIT are compared in terms of materials resources planning and just in time processing. These two methods are used by manufacturers to control production and inventory levels. MRP concentrates on producing finished goods according to forecasted needs, whereas JIT concentrates on production as a response to actual orders. Both MRP and JIT heavily rely on computerized

information processing. The advantages of MRP are:

The planning process aids in consolidating requirements and coordinating material ordering, reducing the necessity for multiple small quantity orders of the same item.

Materials resources planning assist in maintaining a reasonable safety stock level and reducing unnecessary inventories. Additionally, materials resources planning can identify process problems and potential disruptions in the supply chain.

Materials resources planning is suitable for batch and intermittent production or assembly processes.

The provided time period allows for calculation of component part requirements, extending as far into the future as allowed by the master schedule.

Drawbacks:

Materials resources planning is heavily reliant on computers and it is challenging to make changes once the system is already in operation.

Reducing inventory levels and ordering smaller quantities of products scheduled for just-in-time arrival can lead to higher ordering and transportation expenses.

MRP does not adapt well to short-term demand fluctuations and its implementation is complex, causing it to deviate from the desired efficiency of JIT.

The benefits of this are:

The JIT idea revolves around the production of "high quality" products and components, as well as an efficient logistics system for materials and distribution. It proposes that materials should be accessible precisely when they are needed, without being excessively early or late.

The flow process allows for rapid and adaptable responses to customer demands, resulting in reduced operating costs, improved operational efficiency, and enhanced product quality. Additionally, it guarantees minimal inventory and zero failures.

The implementation of Just-In-Time (JIT) principles enables managers to effectively manage lead-time, minimize waste, and improve

operations processes. The ultimate goal is to achieve shorter and consistent lead-time, leading to reduced inventory levels. This reduction in inventory encourages managers to identify any problem areas and make the necessary improvements.

Drawbacks are present.

A supplier's failure to deliver goods to the company on time and in the correct amounts can have a significant impact on the production process.

A natural disaster could disrupt the company's supply chain.

The company and its suppliers have no computer system links, enabling them to coordinate the delivery of parts and materials.

When a company lacks sufficient stocks of finished goods, fulfilling a large and unexpected order can be challenging. Material Requirements Planning (MRP) is a priority-planning technique that calculates material requirements and schedules supply to meet demand across all products and parts in one or more plants. MRP focuses on dependent demand and effectively coordinates the production of each component to ensure parts are available when needed, avoiding delays due to lack of finished components. The objectives of an MRP system include maintaining the minimum inventory necessary for job requirements, ensuring timely production and delivery of finished goods, and seamlessly planning purchasing, manufacturing, and delivery processes. To determine when and what material should be ordered, MRP systems rely on four pieces of information.

The master production schedule provides information about the scheduled manufacturing time for each product.

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The list of parts or materials needed to produce each product is known as the Bill of Materials.

Production cycle

times and material requirements are crucial factors to consider throughout the entire production cycle.

• Lead times for suppliers.

The master schedule, bill of materials, production cycle times, and supplier lead times collaborate to determine when orders should be placed and what materials should be ordered. JIT, a manufacturing process that aligns with actual orders and company needs, relies on timely delivery of appropriate raw materials to enable production upon receiving orders. JIT's advantage lies in minimizing inventory of raw materials and finished goods, thus reducing carrying costs and the risk of spoilage or damage. It emphasizes accurate production and minimizes potential production errors.

One drawback of JIT is the potential for production halts if suppliers do not deliver raw materials as scheduled due to limited inventory. MRP and JIT have different goals, making each system more effective depending on the conditions. MRP is suitable for a production line that operates on a batch or special order basis, as it can easily adjust to changing requirements. On the other hand, JIT is well-suited for repetitive orders of similar products, allowing suppliers to meet prompt delivery schedules for routine orders. Both MRP and JIT prioritize reducing waste in the production process.

Both MRP and JIT systems aim to improve inventory levels and prevent lost production time. However, MRP is more responsive to production fluctuations as it is a change-based system. Lack of capacity may hinder production under the JIT system if unexpected orders are received. In my opinion, Aylesbury pressing needs a harmonious integration of both concepts, although transitioning from capacity planning to JIT will require time, effort, and employee cooperation.