Jit makes quality cheaper because:
Options:
A. the cost of low quality can be hidden as inventory cost.
B. JIT adds more buffers to the system.
C. JIT prevents long runs of defects.
D. B and C
E. A, B and C
The Correct Answer Is:
C. JIT prevents long runs of defects.
Explanation of the correct answer is C: JIT prevents long runs of defects.
Just-In-Time (JIT) is a production and inventory management strategy that aims to optimize the manufacturing process by reducing waste and improving overall quality. Let’s delve into why this answer is correct and then explain why the other options are not correct.
C. JIT prevents long runs of defects.
JIT is a system that emphasizes producing goods only as they are needed, eliminating the accumulation of excess inventory. This approach, in turn, has several quality-related benefits:
i. Reduced Defects: JIT encourages a zero-defect policy. Since production occurs in small, manageable batches, it becomes easier to spot and address defects early in the process. This prevents long runs of defective products from being manufactured, thereby improving overall quality.
ii. Early Detection of Defects: JIT encourages a zero-defect policy. Since production occurs in small, manageable batches, it becomes easier to spot and address defects early in the process. This ensures that only high-quality products move forward in the production process.
iii. Prevents Long Runs of Defects: One of the key benefits of JIT is its ability to prevent long runs of defective products. By producing in small batches, any defects that do occur can be identified and rectified quickly. This prevents the accumulation of a large quantity of faulty products, reducing scrap and rework costs.
iv. Reduces Inventory Holding Costs: JIT minimizes or eliminates the need for holding large inventories. This directly impacts quality because excess inventory can lead to obsolescence, deterioration, or damage of products. By producing only what is needed when it is needed, JIT reduces the risk of quality issues related to stored inventory.
v. Faster Response to Customer Feedback: With JIT, production is closely aligned with customer demand. This allows for quicker adjustments to products based on customer feedback. Rapid response to customer needs helps to ensure that products meet or exceed customer expectations in terms of quality.
Now, let’s examine why the other options are not correct:
A. The cost of low quality can be hidden as inventory cost:
This option suggests that the cost of producing low-quality items can be concealed by categorizing it as inventory cost. However, this is fundamentally at odds with the principles of JIT.
In JIT, the goal is to minimize or eliminate inventory. The accumulation of excess inventory is considered a form of waste because it ties up capital, takes up valuable storage space, and can lead to obsolescence or spoilage.
Therefore, hiding low-quality products in inventory contradicts the JIT philosophy of producing goods only as they are needed, and with an emphasis on quality.
B. JIT adds more buffers to the system:
This option implies that JIT introduces additional buffers in the production process. However, the essence of JIT is quite the opposite. JIT strives to streamline operations and minimize the need for buffers.
Buffers, in the context of manufacturing, refer to extra materials, time, or capacity that are held in reserve to account for variability in demand or production.
JIT seeks to reduce variability and eliminate waste by producing in smaller, more regular batches, thereby reducing the reliance on buffers. Adding more buffers would be counterproductive to the JIT philosophy.
D. B and C:
This option combines the incorrect statement from Option B with the correct statement from Option C. As discussed earlier, Option B is incorrect because JIT aims to minimize buffers, not add more of them. Therefore, this option is not correct.
E. A, B, and C:
This option combines all three statements. However, as explained, Option A contradicts the core principles of JIT. JIT focuses on reducing inventory, not hiding defects within it. Option B is also incorrect, as JIT seeks to minimize buffers. Only Option C, which emphasizes preventing long runs of defects, aligns with JIT principles.
In conclusion, while Options A and B may seem plausible on the surface, they ultimately go against the fundamental principles of JIT. JIT is all about streamlining production, reducing waste, and ensuring high quality through practices like preventing long runs of defects. Therefore, the correct answer remains Option C.
Related Posts
- The Most Important Consideration When A Firm Chooses A Global Product Strategy Should Be
- Market power is derived primarily from the
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
- 10 Effective Time Management Tips for Students : Mastering Growth & Productivity - March 3, 2025
- Building a Culture of Compliance: Strategies for Long-Term Success - January 21, 2025
- Which best describes how an investor makes money from an equity investment? - January 15, 2025