Question

In a Just-In-Time (JIT) system, greater responsibility for PD (Product Development) activities is shifted to:

a) Customers
b) Suppliers
c) Shareholders
d) Regulators

Answer 1

In a Just-In-Time (JIT) system, greater responsibility for Product Development activities is shifted to suppliers. They must ensure timely, quality part delivery, adapt to changes in design or demand, and maintain close collaboration with the main manufacturer.

Step-by-step explanation:

In a Just-In-Time (JIT) system, the focus is to minimize inventory costs and enhance quality control by having parts delivered exactly when needed for production. This JIT approach shifts greater responsibility for Product Development (PD) activities primarily to suppliers. They are expected to deliver high-quality parts on schedule to ensure the main assembly plant can operate efficiently without the need for large storage facilities. Suppliers must also be agile enough to adapt to any changes in product design or market demand that could impact production.

This manufacturing strategy was notably adopted by American car manufacturers in the 1980s, who followed the Japanese innovation to reduce warehousing jobs in the supply chain and push for quality improvements. The JIT approach furthermore affects the entire supply chain and manufacturing ecosystem, leading to the establishment of parts factories near the main assembly plants and creating competition among suppliers for contracts. This often leads to a quest for low-cost labor and can put a downward pressure on wages and benefits, affecting workers, including those in unions.

Ultimately, the Just-In-Time system necessitates close collaboration and reliable performance from suppliers to seamlessly integrate with the main manufacturer's production schedule and to respond effectively to immediate quality issues and changing consumer preferences.

Answer 2

In a JIT system, greater responsibility for Product Development activities is shifted to suppliers (option b) due to the strategy's requirement of close coordination and high-quality parts delivery that aligns precisely with production schedules.

Step-by-step explanation:

In a Just-In-Time (JIT) system, greater responsibility for Product Development (PD) activities is often shifted toward suppliers. JIT is a management strategy which aligns raw-material orders from suppliers directly with production schedules. This approach results in a significant reduction of in-process inventory and associated carrying costs. Moreover, the close relationship with suppliers in the JIT system means that they are often tasked with ensuring the quality of the components they supply and may have a greater role in the development of these components, addressing any defects or design issues much more rapidly than traditional inventory-based systems.

Because suppliers must deliver high-quality parts that fit into the production process without the buffer of warehousing, they have a more involved role in the development and refinement of products to meet the needs of the main manufacturing plant. This methodology emphasizes the importance of their role in delivering parts that are not only cost-effective but also meet stringent quality control requirements.