ACCT 002 Lecture Notes - Lecture 22: Boeing 777
19 Aug 2020
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Document Summary
In a true jit system, inventories are almost entirely eliminated. In jit, parts and material are pulled through the assembly process as needed. At the final assembly stage, a signal is sent to the preceding workstation as to the exact amount of parts and materials needed over the next few hours for the final assembly of products. A similar signal is sent back through each preceding workstation. Thus, all workstations respond to the pull exerted by the final assembly stage. The pull approach is in contrast to the push approach used in conventional production control systems. In a push system, work in process is pushed through the factory from one workstation to the next with little regard to when it is actually needed. In a push system, the overriding concern is often to keep all the workstations busy. Suppliers must deliver defect-free goods in just the right quantity and just when needed.
