cost OVERVIEW
MODELLING AND RISK MODELLING
JIT is a lean manufato improve organisations’ effi ciency. It is a
manufacturing pull system, which can be used for
planning and controlling operations, in order to
produce, and supply the required products at the
right place, when the
effi ciency improvement due to eliminating non-value
added activities and minimising inventory. There are
some critical principles for successful implementation
of a JIT system such as people involvement, training
and education, supplier relations, waste elimination,
Kanban or pull system, uninterrupted work fl ow, and
total quality control (Tourki, 2010). In addition, JIT is
highly benefi cial for a large number of companies,
as the literature indicates that the efficiencies
gained from the consideration of the JIT principle
in production processes is in terms of accelerated
productivity. The inventory levels of manufacturing
dropped from 50 days to 40 days during 1999 and
2000 in United States. This implies the importance
of JIT implementation in the production processes
of companies in achieving operational effi ciency
(Eldenburg, 2007). Furthermore, it is a critical tool
that can also be utilised for the purpose of managing
the external activities associates with an organisation
incand JIT purchasing (Badurdeen, 2006).
Currently, some research has been focused on
application of JIT. This work mainly has been
dedicated to two main issues: cost modelling and
risk modelling