Answer to Question #175453 in Management for Alex

Question

Explain the JIT and Kanban system of TQM

Answer 1

JIT is a manufacturing technique that seeks to maximize a company's return on investment by reducing in-process inventory and related carrying costs. The process relies on signals between various points in the process to tell output when to make the next component in order to reach JIT goals. JIT focuses on continuous improvement and can increase a manufacturing company's return on investment, quality, and productivity if applied correctly. Flow, employee engagement, and productivity may all be main areas of emphasis for continuous improvement. Other elements of the inventory chain are also used in JIT. For example, it cannot be used effectively without other main components of a lean manufacturing system, or it will "end up with the opposite of the desired outcome."

On the other hand, Kanban is a combination of two Japanese words: Kan, which means "visual," and ban, which means "card." Kanban is a Japanese term that roughly translates to "visual cards." It acts as a signaling mechanism within a production method, using (colored) cards on a board, with the goal of enhancing and reducing waste. Kanban allows for continuous output based on consumption. This simple signaling method can easily decide where, where, and how much of a raw material, for example, is needed, ensuring that there is never a shortage during the manufacturing process. The Kanban System can be implemented in a variety of ways. When replenishing, the two-bin method works better, with the first bin holding stock for work. The second bin goes forward as soon as the Kanban cards are removed from the first bin. The first bin is then replenished, bringing the machine back into equilibrium. If the second bin is clean of Kanban cards, replenishment begins again and the process continues. This method is mostly used for finished goods. Kanban cards are often used to keep track of output tools including raw materials and semi-finished goods.