Management Notes

Reference Notes for Management

Jit makes quality less expensive because __________.

Jit makes quality less expensive 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.

Correct Answer Explanation: C. JIT prevents long runs of defects.

Introduction: Just-in-Time (JIT) is a production strategy aimed at minimizing waste and maximizing efficiency in manufacturing processes. One of the key benefits of JIT is its ability to enhance the quality of products while simultaneously reducing costs.

The correct option, C, “JIT prevents long runs of defects,” aptly encapsulates why JIT contributes to making quality less expensive.

JIT operates on the principle of producing only what is needed, when it is needed, and in the quantity needed. This approach significantly reduces the likelihood of long runs of defective products being produced.

In traditional manufacturing settings, large batches of items are often produced, which can lead to the accumulation of defects over time.

These defects may go unnoticed until the end of the production cycle, resulting in higher costs associated with rework, scrap, and potential customer returns. JIT, on the other hand, emphasizes smaller batch sizes and frequent inspections.

This enables defects to be identified and rectified early in the production process, preventing the accumulation of large quantities of defective products. As a result, the costs associated with rework and scrap are greatly reduced.

Explanation of Incorrect Answers:

Option A: “The cost of low quality can be hidden as inventory cost.”

This option misconstrues the core principle of JIT. JIT aims to minimize inventory levels, not hide costs within them. Traditional manufacturing practices often involve large batches of production, leading to the accumulation of defects that may not be immediately apparent.

In contrast, JIT emphasizes producing in small batches and maintaining low inventory levels. This allows for defects to be identified and addressed early in the production process, reducing the likelihood of defects being hidden within inventory.

Option B: “JIT adds more buffers to the system.”

This option fundamentally misunderstands the objective of JIT. JIT is about eliminating unnecessary buffers and waste in the production process. It encourages a lean and efficient production system by producing only what is needed, when it is needed.

This approach minimizes excess inventory, reduces work-in-progress items, and streamlines processes. Adding more buffers would go against the principles of JIT, as it would reintroduce inefficiencies that JIT seeks to eliminate.

Option D: “B and C”

While option C (“JIT prevents long runs of defects”) is correct, option B (“JIT adds more buffers to the system”) is not. As explained earlier, JIT actually aims to reduce buffers and streamline processes. Therefore, this option is only partially correct.

Option E: “A, B and C”

This option combines all three incorrect statements. However, as we’ve discussed, none of these statements accurately reflect the principles and effects of JIT.

JIT is about efficiency, waste reduction, and quality improvement, and it does not advocate for hiding costs in inventory, adding more buffers, or allowing long runs of defects.

In conclusion, Just-in-Time (JIT) manufacturing is a powerful strategy that not only enhances product quality but also reduces production costs. The correct option, “JIT prevents long runs of defects,” highlights the crucial role JIT plays in minimizing defects and ensuring high-quality output.

By adopting JIT, companies can effectively reduce the costs associated with rework, scrap, and customer returns, ultimately making quality less expensive in the long run.

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