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Jit in Service Industry

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Jit in Service Industry
Acknowledgement

It is with overwhelming gratitude that I thank my lecturer, Mr. Harish, for giving me the opportunity to write a report on a challenging subject like ‘Just-in-time in service industry’. I would also like to thank my parents for supporting me in the noble pursuit of knowledge. Special thanks to my beloved life partner who helped me in getting a lot of research material.

I also express my thanks to the authors of the books which has helped me get a better outlook of the topic. I am also grateful to all those contributors whose valuable articles and experiences have enriched this report. The internet has also been a good source for my research. Finally, I would extend my sincere thanks to my room partner to help me with all his experience of research writing.

Executive Summary

In today’s drastically changing business environment, no business can grow and prosper if it does not adapt to the rapidly changing work practices. Just-in-time, the formalized process of reducing all kinds of wastes has been popular in the manufacturing sector for a long time. The service industry has recognized that the JIT system can be adapted successfully in their processes and add value to the basic inputs used to create the end product. The most important aspect of JIT is that it lays emphasis on the process and not on the end product. It therefore can be applied to any process within the service sector. The author has followed Benson’s (1986) guidelines for applying JIT in service, which are as follows:

• synchronization and balance of information and work flow;
• total visibility of all components of the process;
• continuous improvement of the process;
• holistic approach to elimination of waste;
• flexibility in the use of resources;
• respect for people.

Many service sector organizations have achieved great success by implementing JIT in their processes. A few success stories are McDonalds, FedEx, Citibank, Domino’s, Wal-Mart and American



References: APICS (1992), APICS Dictionary, American Production and Inventory Control Society, Inc., Falls Church, VA. Bagchi, P.K., Raghunathan, T.S. and Bardi, E.J. (1987), “The implications of just-in-time inventory policies on carrier selection”, Logistics and Transportation Review, Vol. 23 No. 4, pp. 373-85. Ballou, M. (1994), “Wal-Mart picks progress tools for greater flexibility”, Computerworld, Vol. 28 No. 9, p. 81. Benson, R.J. (1986), “JIT: not just for the factory”, Proceedings from the 29th Annual International Conference for the American Production and Inventory Control Society, St Louis, MO, 20-24 October, pp. 370-74. Berry, L.L. (1980), “Service marketing is different”, Business, May-June, pp. 24-9. Droy, J. (1986), “‘JIT’ for orders as well as parts?”, Production Engineering, Vol. 33, pp. 38-9. Hall, R.W. (1983), Zero Inventory, Irwin, Homewood, IL. Halverson, R. (1994), “Logistical supremacy secures the base – but will it translate abroad?”, Discount Store News, Vol. 33 No. 23, pp. 107-8. Mclachlin, R. (1990), “The service aspects of JIT production”, Proceedings of the 1990 Decision Sciences Institute Annual Meeting, San Diego, CA, 19-21 November, p. 1827. Savage-Moore, W. (1988), “The evolution of a just-in-time environment at Northern Telecom Inc.’s customer service center”, Industrial Engineering, Vol. 20 No. 8, pp. 60-3. Schonberger, R.J. (1982), Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity, Free Press, New York, NY. Stalk, G. (1988), “Time – the next source of competitive advantage”, Harvard Business Review, Vol. 66 No. 4, pp. 41-51. Stalk, G. (1992), “Competing on capabilities: the new rules of corporate strategy”, Harvard Business Review, Vol. 70 No. 2, pp. 57-69. Taylor, L and Martichenko, R (2006), “Lean Transportation-Fact or Fiction?”, An executive white paper, USA. Weiters, D.C. (1984), “Justifying JIT in service industries”, Readings in Zero Inventory: 27th Annual International Conference Proceedings of APICS, Las Vegas, NV, 9-12 October, pp. 166-9.

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