“Better Sound through Research” is the motto of Bose Corporation. Bose has been providing high quality sound systems since 1968. Moreover, their policy for it was simple, better sound, better quality, better business. For Bose to achieve this goal they need to either weigh their options to continue their collaboration with their suppliers or start with their own in-house production of all the products. In-house production would give them an advantage of complete control on quality of the product. Now the questions are that does Bose need to continue with JIT II approach, which has been in effect in the company since past 3 years? Or Bose should become vertically integrated to ensure that production lines are well supplied, and to ensure that all components are in-house and best that can be manufactured? Our group recommends that Bose Corporation should stay with JIT II approach. This would give them a competitive edge within the continual changing technology in the industry. It would help built open collaborative setting between Bose and some selected suppliers. The implementation for the JIT II effort would take overall 3 years for all branches.
Summary of Recommendation Implementation of JIT II:
Growth in Corporate Procurement budget was not keeping up with Bose Corporations needs of increasing staffing levels. In response to this, JIT II was implemented in January 1991. This in effect augmented the Corporate Procurement staff with vendor paid representative who acted as buyers within Bose for their product lines. After 3 years of JIT II implementation, several benefits of the program have been recognized.
Discontinuation of JIT II:
On the other hand, some people in the Bose management and staff are not convinced that JIT II should be continued. They contend that Bose should become more vertically integrated and JIT II may be harming this effort. Our group though recommends that Bose