Which company is widely considered to be the leader of just-in-time production?

 Just-in-time Production
Manufacturing companies are faced with a "make-or-buy decision" for every item or (1).......... they use ( as well as for every process and service). Do they make it themselves or they outsource and buy from a (2)...........? If a company assembles products supplied by large number of subcontractors, they face the problem of how much (3).......... they require.
  In Just-In-Time (JIT) production - also called lean production, stockless production, and continuous flow manufacture- nothing is bought and produced untill it is needed. Each section of the production process makes the necessary quantity of the necessary units at the necessary time - which is when it's required by the next stage of the manufacturing process or by distributors or customers.
  The JIT system is usually credited to Taiichi Ohno, who was vice-president for manufacturing with Toyota in Japan in the early 1950s- although he stated that he got the idea from American supermarkets! JIT is wholly contrary to the European and American logic of encouraging greater productivity, and welcoming production that exceeds the agreed schedule of quota, and stocking extras in case of future problems. 
  JIT minimizes the cost of holding inventories ,which are regarded negatively, as avoidable costs, rathet than as assets. The large Japanese manufacturing factures have long practised (4).........,
and generally used extensive networks of small subcontractors. Of course, if a single subcontractor fails to deliver a component on time the whole production process is sabotaged, but the Japanese industrial system relies on mutual trust and long-term relationships. Small suppliers often attempt to situate their facilities close to the (5)........... of a larger company with which they work.
  The Japanese also prefer small, specialized production (6).........
with a limited (7)..............., in which, wherever possible, all the machines required for a certain job are grouped together. This avoids all the waiting and moving time involved in sending half-finished items from one department to another, although it often requires flexible, multi-skilled employees.
  JIT thus greatly reduces transportation and inventiry cost, and should ensure that there is no waste from overproduction, or from idle workers waiting for parts. It allows increased productivity because of shortened throughput time. If factories are equiped so that set-up times are short, very small production runs are possible. Any quality problems or product defects should be noticed more quickly, production (8).............. are reduced, and the firn can react more rapidly to demand changes.

KEY WORDS - capacity; component; inventory; lead times; location; outsourcing; plants; subcontractors.
Zubco, Raulet.
Exercise: 1)component; 2)subcontractor; 3inventory; 4)outsourcing; 5)location; 6)plants; 7)capacity; 8)lead times.

TRANSLATION.

RUSSIAN variant

Система  бережливого производства.

Производственные компании задаются вопросом «произвести или купить» для каждой детали или компонента, которые они используют (также как для каждого процесса и услуги). Делают ли они это самостоятельно или заказывают «на стороне», и покупают у подрядчика? Если компания собирает продукты, предоставляемые большим числом подрядчиков, перед ними возникает проблема – как много инвентаря им требуется.

В бережливом производстве – также называемом «скудным производством», не запасающим и непрерывным потоковым производством – ничего не покупается и не производится, пока это не потребуется. Каждое отделение производственного процесса выпускает необходимое количество необходимых единиц в необходимое время – что происходит, когда это потребуется на следующей стадии производственного процесса, или распространителями или клиентами.

Система  бережливого производства обычно приписывается Таиши Оно, который был вице- президентом производства «Тойота» в Японии в далёких 1950-ых – хотя он утверждал, что взял эту идею у американских супермаркетов! Система  бережливого производства абсолютно противоположна европейской и американской логике стимулирования большей производительности, и принятия производства, которое превосходит согласованный список или квоту, и накопления излишков в случае будущих проблем.

Система  бережливого производства минимизирует издержки содержания инвентаря, которые отрицательно расцениваются, как преодолимые издержки вместо активов. Большие японские производственные компании длительно практикуют аутсорсинг, и в основном используют обширные сети мелких подрядчиков. Конечно, если единственный подрядчик провалит поставку компонентов вовремя, весь производственный процесс будет саботирован, но японская индустриальная система полагается на взаимное доверие и долгосрочные отношения. Маленькие поставщики часто пытаются расположить их средства близко к местоположениям более крупной компании, с которой они работают. Японцы также предпочитают небольшие специализированные производственные заводы с ограниченной мощностью, в которых, везде, где возможно, все машины, требуемые для определенной работы, сгруппированы вместе. Это позволяет избежать всего времени ожидания и перемещения, вовлеченного в пересылку полу законченных предметов из одного отдела в другой, хотя для этого часто требуются гибкие мульти-квалифицированные рабочие.

Система  бережливого производства, таким образом, сокращает издержки на транспортировку и инвентарь, и должна гарантировать, что нет потерь от перепроизводства или праздных рабочих, ждущих детали. Это позволяет увеличить производительность, благодаря сократившемуся времени пропускной способности. Если фабрики оснащены так, что время установки короткое, то возможны очень небольшие производственные пробеги. Любые проблемы с качеством или дефекты продукта должны быть замечены быстрее, производственное время выполнения заказа сокращено, и фирма может реагировать быстрее на изменение спроса.
Michitiuc Marina

ROMANIAN variant

Companiile de fabricatie se confruntă cu o dificultatea deciziei de “confectionare sau cumparare” pentru orice element sau component pe care il folosesc (precum si pentru fiecare proces si serviciu). Fac ei asta de sine statator sau din exterior, si procura de la o subcontractor? Daca o companie asambleaza produse furnizate de un numar mare de subcontractori, ei intilnesc problema cantitatii de inventar necesar.

 In productia tocmai la timp (JIT) – de asemenea se numeste si productie de examinare , productie fara stocare, si flux continuu de fabricare – nimic nu este cumparat sau produs pana cand nu apare necesitatea. Fiecare parte a procesului de productie isi face cantitatea necesara de unitatile de care are nevoie la timpul cuvenit – care este atunci cand este ceruta de etapa urmatoare a procesului de fabricare , sau de distribuitori sau clienti.

 Sistemul de productie tocmai la timp este creditat la Taiichi Ohno, care a fost vice-presedinte pentru fabricarea Toyota in Japonia mai inainte de 1950 – desi el a implementat idea preluata de la supermarketurile americane! Productia tocmai la timp este contrara  logicii americane si celei europeane de incurajare a producerii in cantitati mari , si productia binevenita care depaseste planul de quota, si stocheaza supraproductia pentru problemele care vor aparea an viitor. Productia tocmai la timp minimizeaza costul de posesiune a inventarului, care este considerat negativ, ca costurile care pot fi evitate , mai degraba ca activele. Marile companii de productie japoneze au practicat mult timp externalizarea si in general folosesc retele extensive sau a subcontractorilor mici. Desigur , daca un subcontractor nu reuşeşte să livreze un component la timp, tot procesul de productie este sabotat, dar sistemul industrial japonez se bazeaza pe relatii parteneriale de incredere si pe termen lung. Furnizorii mici incearca sa-si situeze facilitatile sale alaturi de amplasarea unei companii mari cu care ei lucreaza.

Japonezii de asemenea prefera plantele de productie mici si specializate cu o capacitate limitata, in care oriunde este posibil tot utilajul necesar pentru un lucru anumit este grupat impreuna. Aceasta evita tot timpul de asteptare si de miscare implicat in expediarea semifabricatelor de la un departament la altul desi este des necesita flexibilitate, si angajati cu multe îndemânări.

Productia tocmai la timp reduce costurile de transport si al inventarului, si trebuie sa asigure ca nu ramin deşeuri in urma supraproductiei, sau de la muncitorii inactivi care asteapta partea lor. Ea permite cresterea productivitatii deoarece scurteaza timpul de tranzactie. Daca fabricile sunt echipate astfel incat timpul de productie este scurt atunci productia in cantitati mici este posibila. Unele probleme de calitate sau de defecte trebuie sa fie notate mult mai repede, timpul de executie este redus, si o firma poate răspunde mai rapid la cererea de modificari.

Brandusa Maria

ESSAYS.
Production is a complex field of activity, which requires various human practical and intellectual skills and abilities to plan, organize and make decisions.
In each industry producers are faced with a problem which production strategy to choose- to produce or better to buy components for further production process. The head of a company should use the variant that provides more profitability and reduces costs of production.
Just-In-Production offers one method leading a highly efficient and flexible manufacturing process, following the system of outsourcing and producing only needed amounts of required goods without stocking and overproducing them.
As weak points of JIT system we treat a very excessive dependence of the manufacturing company on the chains of small subcontractors, which relies on mutual trust and very strong responsibility of each participant of the process.
Another weak point of JIT, as the American and European producers may consider, is absence of encouraging greater productivity and welcoming overproduction and stocking extras in case of future problems.
But in the same time we can distinguish these features of JIT, that yield high levels of efficiency and profitability.
They are the following: reducing the cost of holding inventory, minimizing of transportation costs and waiting time and production lead times, concentration of subcontractors’ and producer’s facilities nearby; possibility of very small production runs, and quick reaction to demand changes.
Thus the JIT system, certainly, is not ideal; and it has rather problematic weak points, while having convincing features enough to make producers risk and follow this system.
In conclusion I’d like to mention that whatever production system you choose without good human relationships, mutual trust and responsibility none business will achieve success.

Nowadays all manufacturing companies are faced with undoubtedly important “make – or – buy” decision: to produce all needed components or to buy them from subcontractors? Recently a new strategy has appeared that solves that particular problem, nevertheless East and West industrial systems treat that theory completely different. JIT – a great solution or a great disaster?
The economic dictionary defines JIT production as lean production, stockless production, continuous flow manufacture – nothing is bought or produced until it is needed. Its founder is Taiichi Ohno vice-president for manufacturing with Toyota in Japan in the early 1950s. This strategy is widely implemented in Japanese industrial system but at the same time is criticized in United Europe and USA.
JIT production pursues the aim to economize factors of production and to minimize the costs of production by producing and purchasing only the necessary quantity of components and items. Consequently, money saved from overproduction will make a part of profit. JIT production also reacts more quickly to demand changes what is also very important.
American and European industry, which encourages greater productivity, criticizes JIT strategy for its unreliability. Indeed, if a subcontractor fails to deliver a component on time, production process will be stopped. At the same time, mutual trust and long – time relationships, which are characteristic for Japanese culture and industrial system, can be fundamental in these cases.
In conclusion I want to say that in my opinion JIT production strategy can be extremely useful for every manufacturing company. But remember, though it has a lot of advantages, if you distrust your business partners you should be very careful using it.

Exercises after the text (p.43)

TRUE/FALSE.
1.In JIT, products are "pulled" through the manufacturing process from the end, rather than "pushed" through from the beginning. 
2. JIT originated in American manufacturing.
3. JIT encourages production workers to exceed their production targets.
4. Companies using the JIT system and outsourcing many of their components are highly dependent on their subcontractors.5. In a JIT system, a delivery of defective components can be replaced from the reserve inventory.
6. JIT depends on harmonious partnerships between a company and its suppliers.
7. Japanese production systems generally speed up the entire manufacturing process.
8. JIT leads to economies of scale.

VIDEO

1) True or False questions.
1. Bill Gates is one of the owners of Dell.
2. There are 6 facilities of Dell around the world.
3. Dell uses strategy of JIT.
4. During every hour the materials required are delivered to the factory.
5. All products manufactured by Dell are distributed from the only one center.
6. Dell’s servers are brains of facilities.
7. Park inventories are high.
8. All products in Dell have a unique tag number.
9. There are a lot of warehouses in Dell.
10. Kevin Rollins is a middle-level manager in Dell.

2) Fill in the following statements.
1.Michael Dell is chairman of ...............
2. Dell has manufacturing facilities ............
3. All orders in Dell are sequenced into production schedules every ----- hours.
4. Every manufacturing center across the globe acts like................. of facility.
5. Labelling is the ............... stage of production process in Dell.
7. There ..................warehouses and park inventories are .........
8. Identifier or Tag number is ...............and has human and machine ..................format.

Advantages of JIT Manufacturing.

1) What does the lean mean?
2) Which are the main wastes of lean production?
3)How much percent of lead time is non value added?
4)What is the difference between value added and non-value-added?
5)Why are the people the biggest asset a company has?
6) What is the key of lean manufacturing?