ITPEC IP April 2020 Question 90
Which of the following goal can be expected to be achieved by the introduction of Just In Time?
Explanation
Reducing semi-manufactured goods and components in inventory — the goal of Just In Time production.
Just In Time makes and delivers only what is needed, when it is needed, in the quantity needed. Each process withdraws parts from the previous one only as it uses them (the kanban pull system), so components are not stockpiled and semi-manufactured goods (work in process) do not pile up between processes. Less inventory means less storage space, less capital tied up and less waste.
Answer (d)
Why not others:
- •(a) — improving the productivity of the sales department is the aim of SFA (sales force automation); JIT controls production and parts
- •(b) — building a long-term relationship with customers is the aim of CRM (customer relationship management)
- •(c) — knowing the sales status of each individual product unit is what a POS system gives by recording every item sold
Key rule: JIT is a production-side method that cuts inventory by pulling parts through the line only as they are needed; sales and customer goals belong to SFA, CRM and POS.
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