Gang.
Just in time be implemented in small scale organizations too.
Now that you understand the details of Just In Time manufacturing you may have one common question that
many students ask me.
Just in time be implemented in small scale organizations too.
Let me explain the answer.
With the help of a case study many manufacturing concepts that have been applied by large manufacturers
can also benefit small scale operations.
Just in time for example can lead to significant savings in inventory cost for even small scale operations.
Gambling artists all colors based in Portland a small oil paint manufacturer applied Justin Time concepts
to its manufacturing process.
The company which was started by husband and wife team had a modest beginning.
They started operations in their garage producing only three colors of paint.
Now the company is dealing with more than eighty seven colors and has a client base that is spread across
America.
The company employs 20 employees and has its own manufacturing facility to handle the requirements of
increased production.
The company hired a manufacturing consultant.
He advised the company to change its traditional manufacturing system to a new leaner just in time moderate
prior to adopting the Justin buying model.
The company manufactured in batches of twelve hundred cubes of paint.
These batches would end up on the inventory list for a period of three to six months.
But after transition to the Justin Time system gamblin started manufacturing smaller batches of 500
cubes producing a single color at a time.
As a result production figures doubled and finished goods inventory turnover came down from three months
to six days.
Wow.
The quality control process also saw significant improvement.
The implementation of Just In Time manufacturing strategies helped the company reduce inventory levels
significantly and free up capital amounting to two hundred thousand dollars.
So this case truly is a classic example for the question that just in time can be implemented in small
scale organizations to.