1. How does just-in-time (JIT) inventory control help organizations become leaner?

Just-in-time inventory aims at reducing the organization’s waste and enhance its value. The implementation of JIT ensures that the organization cuts unnecessary inventory and removes delays in its operations (Needles, 2013). For instance, the manufacturer is required to receive the raw materials of the products from the supplier shortly before the production process starts with the aim of shipping the output to the customer once the manufacturing is over. By doing so, the organization would have reduced the inventory of the goods held in the warehouse and reduce waste. Moreover, through lean manufacturing, the organization can reduce space, the number of workers and inventory (Wang, 2010). This will ensure that the company maximizes the cost and reduce the margin of waste.

2. Where does the information on waste (waste in raw materials, waste in process and flow, etc.) come from?

The company is required to eliminate waste by producing small batches of products based on their demand. Besides, the company will get information on waste by evaluating the overstocked inventory, the supplies held within the facilities and the employees’ working hours. Similarly, the company will get information from monitoring excessive waste times, unnecessary processing steps, unneeded material movements or workers and other non-value adding activity in the company.

3. Should line employees be involved in making recommendations to improve lean production and processes or should this decision-making be left only to management?

Employees should be allowed to make recommendations to improve lean production and processes. Employees in any organization work harder to ensure that the company meets its objective (Wang, 2010). They should make recommendations because they have enough experience and can identify areas that need improvement. If employees are allowed to make recommendations, they are likely to work harder towards improving production because they are part of the team. Also, they will gain morale since they feel that the organization values their ideas.

References

Needles, B. E. (2013). Managerial accounting. Place of publication not identified: Cengage Learning.

Wang, J. X. (2010). Lean manufacturing: Business bottom-line based. CRC Press.

 
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