Management Notes

Reference Notes for Management

Which one of the following is a concern expressed by suppliers in jit partnerships?

Which one of the following is a concern expressed by suppliers in jit partnerships?

 Options:

A. having too many customers
B. delivery to the point of use
C. having limited ability to respond to changes in product and quality
D. large lot sizes
E. customers’ infrequent engineering changes

The Correct Answer Is:

C. having limited ability to respond to changes in product and quality

Correct Answer Explanation: C. having limited ability to respond to changes in product and quality

In Just-in-Time (JIT) partnerships, suppliers play a crucial role in ensuring the smooth flow of materials and components to support the production processes of their partners. Among the concerns expressed by suppliers in such partnerships, the most pertinent one is having a limited ability to respond to changes in product and quality (Option C).

When focusing on why this concern holds weight, it’s crucial to understand the nature of JIT systems. JIT revolves around lean manufacturing principles that emphasize minimizing waste and maximizing efficiency by synchronizing production with customer demand.

This means suppliers must provide goods precisely when needed, in the right quantities and quality, without surplus inventory.

For suppliers, a primary concern is their capability to adapt swiftly to changes in product specifications or quality standards demanded by their partners. JIT systems rely on precise specifications and predictable demand.

Any sudden alterations in product design, quality requirements, or unexpected shifts in demand can significantly disrupt the flow of materials and production schedules.

Suppliers fear that their inability to promptly adjust to these changes might result in delays, subpar quality, or even halts in production, which could strain the partnership and jeopardize customer satisfaction.

Moving on to the other options:

A. Having too many customers:

While managing multiple customers can pose logistical challenges for suppliers, it’s not the central concern in JIT partnerships. JIT focuses more on the synchronization of production with demand and the ability to respond quickly to changes.

Having numerous customers could create complexities in scheduling and prioritizing orders, but it doesn’t directly relate to the core JIT principle of responsiveness to changes in product and quality.

B. Delivery to the point of use:

Delivery to the point of use is a fundamental aspect of JIT. This practice aims to reduce waste, streamline operations, and enhance efficiency by delivering materials precisely where they are needed, when they are needed.

In JIT partnerships, this is more of a requirement than a concern. Suppliers in JIT systems strive to deliver materials directly to the production line to minimize inventory holding costs and eliminate unnecessary transportation or handling.

D. Large lot sizes:

JIT philosophy revolves around minimizing lot sizes to decrease inventory levels and increase responsiveness. Large lot sizes result in increased inventory holding costs, storage space requirements, and the risk of obsolescence.

Suppliers in JIT partnerships aim to deliver smaller, more frequent batches of materials to align with the production needs of their partners. Thus, large lot sizes conflict with the core principles of JIT and aren’t the primary concern for suppliers in these partnerships.

E. Customers’ infrequent engineering changes:

While JIT systems thrive on stability and predictability, occasional engineering changes by customers might not necessarily pose a significant challenge. The concern here, if any, lies in the ability to efficiently adapt to these changes when they do occur.

Infrequent changes might disrupt the established flow but might not be the central concern unless they drastically impact production schedules or quality standards.

In JIT partnerships, the primary concern for suppliers remains their limited ability to promptly adapt to changes in product specifications or quality standards. This limitation can potentially disrupt the efficient flow of materials and production schedules, impacting the overall effectiveness of the JIT partnership.

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