Chapter 08 - Combining with Other Production Modes
Q: Tell us about the preparations for production that are needed when using the just-in-time inventory management method.
A: You need to make preparations for production based on unofficial orders even when you are using the just-in-time inventory management method. The preparations for production that must be made are:
1. Calculate quantities of required materials and make arrangements to obtain those materials
2. Check plant load
3. Calculate the number of just-in-time cards
These functions are not the functions of just-in-time inventory management. There are many instances when calculations of required quantities are done during the use of MRP.
But, although we can calculate required quantities in the use of MRP, we cannot get the precise timing required and its load checking functions are inadequate. Problems like that are solved through the use of the Advanced Planning and Scheduling System. There are many examples of the system being used for production preparations, one being a case study of the Advanced Planning and Scheduling System in use by an auto parts maker. Even in those instances in which the just-in-time inventory management method is used, the Advanced Planning and Scheduling System is well suited for making preparations for production because it makes accurate preparation possible. The Advanced Planning and Scheduling System can also be used for calculating the number of just-in-time (kanban) cards.