Jit Benefits
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EXECUTIVE SUMMARY
The purpose of this individual assignment is to show how JIT helps in providing the alternative solution in a logistics operation; the disadvantages of this system would also be explored. At the start of this assignment I will try to provide a simple definition of JIT, then demonstrate the benefits and/or problems in this areas; namely raw materials procurement, production control and planning, inbound logistics and lastly warehouse and storage. Following that will be a case study and recommendations for the implementation of this system.
DEFINITION:
JIT is a manufacturing philosophy that was perfected by the Japanese car company Toyota. The concept is simple, to produce products just in time or to look it in another way, to make only what you want to sell. Its main focus is the exclusion of inventory in the manufacturing process and the elimination of wastes and activities deemed not to add any value. Inventory is looked at negatively as it incurs high costs in terms of its storage and also because it’s subjected to service costs and risk costs. Factors like idle time, lead time, defective equipment, material handling etc are considered as wastes. JIT goes hand in hand with the Kanban system - a card system where a production process is initiated only when a card with the required command is tagged on it, without which, the process is at a standstill. The coordination and planning required for this particular system to take off is immense, as every party within the system needs to play their part.
BENEFITS & PROBLEMS OF JIT IMPLEMENTATION IN:
• RAW MATERIALS PROCUREMENT (Suppliers)
BENEFITS:
JIT ensures that the number of source suppliers the company deals with, is streamlined to a select few. This few are selected based on how competitive their prices are and for their track records in their service and products. By trimming the number of suppliers, it will result in faster and
EXECUTIVE SUMMARY
The purpose of this individual assignment is to show how JIT helps in providing the alternative solution in a logistics operation; the disadvantages of this system would also be explored. At the start of this assignment I will try to provide a simple definition of JIT, then demonstrate the benefits and/or problems in this areas; namely raw materials procurement, production control and planning, inbound logistics and lastly warehouse and storage. Following that will be a case study and recommendations for the implementation of this system.
DEFINITION:
JIT is a manufacturing philosophy that was perfected by the Japanese car company Toyota. The concept is simple, to produce products just in time or to look it in another way, to make only what you want to sell. Its main focus is the exclusion of inventory in the manufacturing process and the elimination of wastes and activities deemed not to add any value. Inventory is looked at negatively as it incurs high costs in terms of its storage and also because it’s subjected to service costs and risk costs. Factors like idle time, lead time, defective equipment, material handling etc are considered as wastes. JIT goes hand in hand with the Kanban system - a card system where a production process is initiated only when a card with the required command is tagged on it, without which, the process is at a standstill. The coordination and planning required for this particular system to take off is immense, as every party within the system needs to play their part.
BENEFITS & PROBLEMS OF JIT IMPLEMENTATION IN:
• RAW MATERIALS PROCUREMENT (Suppliers)
BENEFITS:
JIT ensures that the number of source suppliers the company deals with, is streamlined to a select few. This few are selected based on how competitive their prices are and for their track records in their service and products. By trimming the number of suppliers, it will result in faster and
Bibliography: Case Study: Atkinson, C (2005) McDonald 's, a guide to the benefits of JIT Viewed 05 April 2009 from the World Wide Web:< http://www.inventorymanagementreview.org/2005/11/mcdonalds_a_gui.html> Alshall (2008) A Reflection on Just-In-Time (JIT) Viewed 30 March 2009 from the World Wide Web:< http://www.netobjectives.com/blogs/reflections-on-JIT> Beasely, J E (2005) Just-In-Time (JIT) Viewed 30 March 2009 from the World Wide Web: Just-In-Time Production Viewed 30 March 2009 from the World Wide Web: < http://www.uoguelph.ca/~dsparlin/jit.htm> Lambert, D M, Stock, J R & Ellram L M (1998) “Fundamentals of Logistics Management” McGraw-Hill Liker, J K (1997) Becoming Lean: Inside Stories of U.S. Manufacturers. Viewed 31 March 2009 from the World Wide Web: Schonberger, R J (1984) Just-In-Time Production Systems: Replacing Complexity with Simplicity in Manufacturing Management pp (2009) Just In Time (Business) Viewed 30 March 2009 from the World Wide Web: < http://en.wikipedia.org/wiki/Just_In_Time_(business)> http://www.netobjectives.com/blogs/reflections-on-JIT