AbstractJust throughput (sales Raw Materials cost). Even
AbstractJust in Time is a system that detects hidden problems at the value chain decrease the production of waste of the system while at the same time increasing throughput (sales Raw Materials cost). Even though the Just in Time system might seem as interesting and less complicated it requires a lot of hard work, commitment, dedication and also very effective and efficient communications to avoid delaying production schedule. This research paper/article outlines or discusses in depth the JIT implementations, benefits, problems as well as solutions and how JIT has changed the role of purchasing from merely placing orders to investigating supplier’s technical and process capabilities as well as the importance of realizing suppliers as more like partners rather than as adversoinaries.
The objectives here are twofold: The first objective is to acquaint a reader or assessor with the overall Just in Time concept and advantages and disadvantages of employing this philosophy; the concept presented here represent the ideal principal and methods of implementation, benefits, problems and solutions. IntroductionsHere a research about Toyota Motor Company is conducted which gives insight about how it took the company 22 years to develop and implement Just in Time system fully and effectively. Just in Time simply means producing or making only what is needed, when is needed, and in that in the accurate amount that is needed ‘said expects’. Purchasing is said out to be the first phase of material management, it’s the acquiring of good and services from external sources to accomplish or fulfil certain needs ‘said’ (Smiriti Chand: 2007).Lean Production process is an assembly-line method developed specifically for Toyota or other manufacturing of automobiles, it is used to eliminate waste or anything that does not add value to the end product or output said”(Dieterich A,September 26:2017) .After careful and thorough analysis of the implementation, benefit, problems and solutions we’d be in a more advanced position to give insight on the positive effect of employing the system, its important competitive advantages as well as the disadvantages.
Literature ReviewFirstly the primary purpose of conducting the research is to answer questions at hand, solved problems, explore phenomena, establish facts, principles and laws which help us generate new theory (John Renz A. Flores, R.N: 2018).
This research is all about Just In Time, its effect in changing the role of purchasing from placing orders to investigating the suppliers technical and process capabilities, the effect of value analysis which aims at seeking cost reductions through buyer and suppliers corporation. We have to agree that value analysis has become an integral part of JIT and had helped in realizing that that suppliers should be considered as partners rather than adversionaries. The benefits and limitations or problems of employing the JIT philosophy.
And also determining it is effective or not to employ the philosophy.Researchers could’ve used either quantitative or qualitative techniques. Quantitative research is an explaining phenomena by collecting numerical data that are analysed using mathematical based methods and Qualitative research seeks to answer questions about why and how people behave in the way that they do. It provides in-depth information about human behaviour (Aliaga & Gunderson:3rd edition(2005)said”. Sources of quantitative data may include: Surveys, whether conducted online, by phone or in person.
These rely on the same questions being asked in the same way to a large number of people; Observations, which may either involve counting the number of times that a particular phenomenon occurs, such as how often a particular word is used in interviews, or coding observational data to translate it into numbers; and Secondary data, such as company accounts (Aliaga & Gunderson: 25-31,3rd edition (2005). And some sources of qualitative may include Interviews, which may be structured, semi-structured or unstructured; Focus groups, which involve multiple participants discussing an issue; Postcards, or small-scale written questionnaires that ask, for example, three or four focused questions of participants but allow them space to write in their own words; Secondary data, including diaries, written accounts of past events, and company reports; and Observations, which may be on site, or under ‘laboratory conditions’, for example, where participants are asked to role-play a situation to show what they might do. But now we’ve found that demand forecasting is the most appropriate ones being used in just in time purchasing accounts (Aliaga ; Gunderson: 27-31,3rd edition (2005).Researchers, they’ve used these types of methods and techniques to provide a conceptual insight using peoples experience in a research, more to as providing human side of the issue which can often be contradictory behaviour, opinions, past experience, emotions and relationships with other personnel. It is said that these methods are also useful in identifying intangible factors, (e.g. socio-economic status, gender roles or ethnicity).
But mostly important the methods can help the researcher to better understand and interpret the issue at hand because each method is qualified to bring specific set of data.Quantitative and qualitative research methods differ primarily in:• Their analytical objectives• The types of questions they pose• The types of data collection instruments they use• The forms of data they produce• The degree of flexibility built into study designBackgroundScopeThis research seek to enlighten the organization that it can generate a lot of revenue if it uses a manufacturing system like Just-In-Time. As the manufacturing system doesn’t only focus on generating revenue but also focuses on eliminating waste in production as (Lubben. 1988) explains “Just-In-Time philosophy is to eliminate waste in the production environment and to continue this process as a continuous cycle, always striving for the best”. What made the research necessary?As many companies are faced with fierce competition, which forces them to increasingly consider new applications to improve quality and to reduce cost and lead time.
Therefore manufacturers need to keep pace with the dynamic requirements of the market and be receptive to change. So Toyota realized that in order for them to outperform their competitors they will need to make use of a system which will create a detailed production plan that includes procurement of parts. By so doing it will be able to supply what is needed, when is needed, and in the quantity needed. What situation created an interest into the research?An article I read about Toyota 7 years ago when it was experiencing vehicle delivery delays stemming from an earthquake disruption at its part supplier.
Even when Toyota was facing problems, Mr Katsuaki Watanabe who was the president and CEO of Toyota at that time before Akio Toyota assumed those position on the 23rd June 2009 believed in his company`s Just-In-Time production system and said that they will keep on using the strategy as they have been implementing it for years. What was the situation before the need for the research was identified? Value analysis of the company(Matson and Matson. 2007) suggested that, for global competitiveness, further support is required for efficient Just-In-Time supply chains and that it is essential that Just-In-Time suppliers identify and address performance issues as effectively as possible. Purchasing practices(Dong, Carter, ; Dresner 2001) reported that the implementation of Just-In-Time purchasing systems can result, on average, in reduced inventory costs, shorter lead times and improved productivity for buying organizations. (Dong et al. 2001) also stated that JIT purchasing strategies are aimed at a synchronized and timely product flow from the supplier to the buyer.
(Boer, Labro, and Morlacchi 2001) suggested that with increasing significance of the purchasing function, purchasing decisions become more important. (Chao, Scheuing, ; Ruch 1993) concluded that quality and on time delivery are the most important attributes of purchasing performance.Supplier selection”It is apparent that the selection of appropriate suppliers and effective supplier relationship management are key factors in increasing the competitiveness of firms” (Choy, Lee, Lo, 2003; Ghodsypour ; O` Brien, 2001). It is essential that manufacturers practicing Just-In-Time require suppliers that punctually supply materials and outsource parts in the appropriate quantity and with consistent quality. (Braglia ; Petroni, 2000) explains that reliable suppliers enable manufactures to reduce inventory costs and improve product quality, they exclaim that it is under stable that manufacturers are increasingly concerned about supplier selection. “In the supplier selection process, it is not always easy to recognize precise rules, but there is, in general, a coherent way to solve the problem. The choice of supplier is then a problem usually solved subjective criteria, based on personal experiences and beliefs, on the available information and, sometimes, on techniques and algorithms supporting the decision process (Albino & Garavelli 1998).
METHODOLOGYBENEFITSThe benefits of the just-in-time (JIT) creation strategy are well-documented, but it can additionally possess a little weighty disadvantages. The main subject alongside this creation procedure is evidenced in its name. “Just in time” way that the accomplishment of this company strategy depends mainly on precise coordination amid companies and their suppliers to safeguard punctual delivery.
Because there is no inventory buffer, company can tolerate considerably if each one agent of creation is delayed.•preventing over-production•minimising staying periods and transport costs•saving resources by updating your creation systems•reducing the capital you possess tied up in stock•dispensing alongside the demand for inventory operations•decreasing product defectsADVANTAGESProduction mistakes can be spotted more quickly and corrected, which results in fewer products being produced that contain defects.The company is investing far less cash in its inventory, since less inventory is needed.
The very low inventory levels mean that inventory holding costs (such as warehouse space) are minimized.There should be minimal amounts of inventory obsolescence, since the high rate of inventory turnover keeps any items from remaining in stock and becoming obsolete.Since production runs are very short, it is easier to halt production of one product type and switch to a different product to meet changes in customer demand.DISADVANTAGESA supplier that does not hold goods to the firm precisely on period and in the correct numbers might critically encounter the creation process.
A usual catastrophe might inhibit alongside the flow of goods to the firm from suppliers, which might halt creation nearly at once.An investment must to be made in data knowledge to link the computer arrangements of the firm and its suppliers, so that they can coordinate the transport of portions and materials.A firm could not be capable of instantly encounter the necessities of a large and unexpected order, as it possesses insufficient or no stocks of finished goods.RECOMMENDATIONThe most effectual inventory arrangement a just-in-time arrangement can save a tiny company period and money. Though, prior to requesting a JIT inventory arrangement, a tiny company must to safeguard precise agents are in locale inside and beyond of the company to safeguard the long-term accomplishment of the inventory strategy.
Strong Vendor RelationsTo institute a JIT inventory association arrangement, it is critical to possess forceful connections alongside suppliers. The premise of a JIT inventory arrangement is established concerning the skill to locale a last-minute order for inventory and rely on the goods appearing on time. The foundation of this premise lies alongside your suppliers and your skill to count on them. After you locale an order, your vendor must to possess the skill to procedure and boat the order swiftly to encounter your needs. Before going in into shipment contracts, check that your vendor can procedure your orders on a timely basis, possesses the capacity to seize on orders alongside short notice, and holds a reliable past of fulfilling requests.Strong Contact ChannelsIn supplement to the reliability of your suppliers, you have to possess a reliable channel of communication. You have to be capable of to allocate order data to your vendors in a manner that specifies precisely what you need.
You demand to be capable of grasp a supplier at each moment – exceptionally if an order needs to be adjusted. Because a JIT inventory arrangement revolves concerning being as effectual as probable, period is the biggest resource, and you have to be capable of circumvent wasting each period on trying to grasp your supplier.Strong Training and ManagementFor paramount efficiency, you have to incorporate an outline of training operative’s – exceptionally after adjustments occur.
This falls on the shoulders of association to clarify strategy guidelines and procedures to operatives properly. This is exceptionally critical in a JIT inventory arrangement, as period is of the essence. An operative have to understand precisely what to do prior to the receipt of an order. After an order possesses been allocated, it is the obligation of the well-trained operatives to understand precisely what needs to be done. Develop inner procedure charts for manufactured goods and flowcharts to clarify the whole existence series of the product. Grasp ongoing forums to monitor the vision of your operatives and expertise inside your company. ReferenceAlbino, V.
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Lubben, R. T. (1988). Just-in-t?me manufacturing.
USA: McGraw-Hill.Matson, J. E., & Matson, J.
O. (2007). Just-in-time implementation issues amongautomotive suppliers in the southern USA. Supply Chain Management: AnInternational Journal, 12(6), 432–443Read more at: https://www.skillsyouneed.com/learn/quantitative-and-qualitative.htmlRead more at: https://www.skillsyouneed.com/learn/quantitative-and-qualitative.html: https://www.skillsyouneed.com/learn/quantitative-and-qualitative.html: https://www.skillsyouneed.com/learn/quantitative-and-qualitative.html:https://www.facebook.com/tr?id=1714262845527569&ev=TechTarget- CouchbaseTargetAudience