The key to success
Posted: Sun Dec 22, 2024 10:36 am
Just-in-time works well for companies that are able to standardize their production. In addition, the key to success is often a good contract with the supplier, which transfers much of the responsibility for the entire process and the need to maintain stocks. This is possible when the company has a strong negotiating position vis-à-vis its suppliers and can dictate their terms to a certain extent. On the other hand, a similar effect can be achieved by integrating suppliers into the company, but even then the company's success depends on its ability to meet demanding requirements.
9 Kanban
One method that helps implement Just-In-Time is Kanban, a logistics system for maintaining relatively constant stock levels. It consists of automatically placing an order with the supplier when specific stocks fall by a certain amount. Originally, special pieces of paper were used for this purpose, which traveled from the receipt of the delivery to the departure of the finished product, at which point they were returned to the supplier as the order. Today, the system is electronic, which makes it even more useful.
It is important to note that this process does not only apply to suppliers outside the company. If production is divided into stages between departments within the company, one department can be a supplier to another. In this case, production continuity is also important, so the release of the product also generates a signal via the Kanban system to the department upstream in the supply chain, and thus orders can reach the external suppliers.
The entire Just-In-Time system requires a higher than indonesia whatsapp mobile number average delivery frequency, which significantly increases costs and may seem uneconomical. However, Toyota's experience shows that the advantages, such as reduced inventories and flexibility, far outweigh the losses and that using this strategy is profitable.
10. 6p
Six Sigma is the most formalized of the methods presented, and its introduction requires the involvement of a specially trained consultant. At the same time, the popularity of this method prompts me to introduce it. The name refers to statistics: sigma is the mean deviation from the mean, or standard deviation. In this case, the term is used to describe the probability of a defect occurring, and a process with a sigma value of 6 allows for fewer than three defects per million products.
Although the introduction itself suggests that the method is extremely complex, in practice it uses many methods common to Kaizen or lean management, such as the Pareto chart, the Ishikawa chart or FMEA. A certain innovation is the special emphasis on measuring concrete results: each project must result in an increase in profit. In addition, decisions are made more on the basis of concrete figures than on assumptions and opinions.
Six Sigma has both supporters, who point out its positive impact on the results of companies such as GE or Motorola, and detractors, who consider that it applies the same methods as other quality management systems and is only distinguished by the introduction of hierarchical consulting structures. In the case of smaller companies than Motorola and GE, the application of the concepts presented will produce the most tangible results.
The key to success
9 Kanban
One method that helps implement Just-In-Time is Kanban, a logistics system for maintaining relatively constant stock levels. It consists of automatically placing an order with the supplier when specific stocks fall by a certain amount. Originally, special pieces of paper were used for this purpose, which traveled from the receipt of the delivery to the departure of the finished product, at which point they were returned to the supplier as the order. Today, the system is electronic, which makes it even more useful.
It is important to note that this process does not only apply to suppliers outside the company. If production is divided into stages between departments within the company, one department can be a supplier to another. In this case, production continuity is also important, so the release of the product also generates a signal via the Kanban system to the department upstream in the supply chain, and thus orders can reach the external suppliers.
The entire Just-In-Time system requires a higher than indonesia whatsapp mobile number average delivery frequency, which significantly increases costs and may seem uneconomical. However, Toyota's experience shows that the advantages, such as reduced inventories and flexibility, far outweigh the losses and that using this strategy is profitable.
10. 6p
Six Sigma is the most formalized of the methods presented, and its introduction requires the involvement of a specially trained consultant. At the same time, the popularity of this method prompts me to introduce it. The name refers to statistics: sigma is the mean deviation from the mean, or standard deviation. In this case, the term is used to describe the probability of a defect occurring, and a process with a sigma value of 6 allows for fewer than three defects per million products.
Although the introduction itself suggests that the method is extremely complex, in practice it uses many methods common to Kaizen or lean management, such as the Pareto chart, the Ishikawa chart or FMEA. A certain innovation is the special emphasis on measuring concrete results: each project must result in an increase in profit. In addition, decisions are made more on the basis of concrete figures than on assumptions and opinions.
Six Sigma has both supporters, who point out its positive impact on the results of companies such as GE or Motorola, and detractors, who consider that it applies the same methods as other quality management systems and is only distinguished by the introduction of hierarchical consulting structures. In the case of smaller companies than Motorola and GE, the application of the concepts presented will produce the most tangible results.
The key to success