What is Unit Load
April 15, 2010, 9:08 pm
Filed under: Definitions, Key Questions

Unit Load in the logistics usually refers to a physical transport unit. A typical unit load consists mostly of the loading equipment, such as pallets, containers, panels, wire baskets, etc., The package Units can be divided after its Function into three groups: Continue reading


What impact has Just in Time – Just in Time in Opel
April 15, 2010, 8:32 pm
Filed under: Additional Information, Key Questions

Just in time can be often found in connection to the Kanban (Signaling System working with cards or markers) for excample in Toyota, and is used in large companies.

Tim Gudehus states that Just-In-Time is loosing his relevancy in modern Logistics. Even Companies that were successfully implementing the Just-In-Time turning away from the exact and precise delivery in regard of minute or hour exact delivery and accepting the need for an intermediate storage facility.

(Tim Gudehus – Logistik 2005 – Springer)

Just in time at the Opel Plant in Zaragoza

Jit has a lot of potential in highly competitive industries like the car industry and they tried to use that potential on any point of the Value chain. I have found interesting information about Just-In-Time production form the Opel-Plant in Zaragoza. Continue reading

What kind of goods are produced using Just in Time
April 15, 2010, 8:30 pm
Filed under: Key Questions

Examples are found in the Production of

  • cars during the final assembly
  • household appliance
  • computers

Are there Requirements
April 15, 2010, 8:29 pm
Filed under: Key Questions

Requirements for Just in Time

  • continues flow of processing for
  • steady and constant cycle times
  • low changeover times
  • high availability
  • hight freedom from errors

Are there disadvantages
April 15, 2010, 8:28 pm
Filed under: Key Questions

There are certain disadvantages:

  • Optimisation through the use of existing time buffers in order to achieve an optimum capacity utilisation is not possible due to the lag of buffers.
  • The probability of abidance to a certain adherence to schedules for the overall production process  is reduced by the product of the adherence to schedules for each of the production stages // for example the adherence to schedule for the overall production = n / the adherence to schedule for one production stage is n1, n2 ,n3 etc. ->  n= n1 * n2 * nx

If all the production stages in a supply chain of 4 suppliers have an adherence to schedule of 97% the overall adherence to schedule is only 88,5%

This example is demonstrating that the adherence to schedule and reliability is crucial for the whole process. In a just in time process there are also no large improvements in regards of cost reduction possible buy using the grouping of orders because of the continuous production process.

What are the reasons for just in time:
April 15, 2010, 8:27 pm
Filed under: Key Questions
  • The reduction of the overall lead time
  • No buffers or storage facilities are needed
  • Therefore reduction of costs

26.02 is there a relationship between Price Value and Cost
March 8, 2010, 8:11 pm
Filed under: Additional Information, Key Questions


The amount of money expected, required, or given in payment for something

(Oxford American Dictionaries)

David Ricardo publicized  1817 Principles of Political Economy and Taxation there he created the theory, that a equilibrium price is where demand and an offer find their balance.


(of an object or an action) require the payment of (a specified sum of money) before it can be acquired or done

(Oxford American Dictionaries)

In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost


I prefer the definition that cost is the money you need to pay to produce or buy something, the cost is not necessarily the price! (feel free to commend on that)


  • the regard that something is held to deserve; the importance or preciousness of something
  • the material or monetary worth of something
  • the worth of something compared to the price paid or asked for it
  • the usefulness of something considered in respect of a particular purpose

(Oxford American Dictionaries)

Obviously Value is kind of abstract.

More interesting thoughts:

Continue reading