A Brief Note On Jit And Its Effect On How Business Is A World Leader Of Development And Production

a. After analyzing Pro-Forma Income Statement for all four quarter the utilization of Just-in-time strategy in Quarter 2-3 would have made Lean in Enterprises for more profitable. Since the premise of Just-in-time is to reduce waste and make sure that the supply chain is working efficiently to meet the customer demand. Just-in-time inventory is the minimum inventory necessary to keep a perfect system running. In Operation Management Heizer and Render define JIT inventory as the exact amount of the good arrives at the moment it is needed. (p. 2010) The ability to implement this strategy in Quarter 2 and Quarter 3 would have been very beneficial to the company expenses. The Just-In-Time strategy would have help the company avoid the $8,163 holding cost an excess capacity cost of $491,524. Just-in-time strategy would have prevented additional production after the product had low customer demand. Just-in-time would have also prevented the same waste

Recommendation:1. Improve Just-in-time systemSpartan Plastic Limited need to improve Just-in-time system, it is control aims to maintain inventory level at zero, with an immediate objective of reducing the capital tied to the inventories. It is an important principle that able to eliminating waste throughout the production system. The waste can occur, through excess inventories and overly large lot sizes, both of which can cause unnecessarily long customer lead times. Let's explain the role of the core JIT practices in enhancing manufacturing performance. JIT manufacturing requires the establishment of JIT supplier relationships with suppliers; Spartan in this case, that is able and willing to deliver the needed quantities of parts as the needs arise and without any defects.

Just-in-time: Just-in-time is an approach of continuous and forced problem solving through a focus on throughput and reduced inventory. Nissan takes advantage of JIT through reduced inventory levels and relying on a supply chain to deliver the parts needed to build its cars. The major benefit to JIT is that production runs remain short and the costs are reduced through less waste in warehouse storage space requirements. The company also saves money on raw materials

This lean production technique involves using a range of “practices designed to reduce waste and improve productivity and quality” (Chase, Jacobs, & Aquilano, 2006). The JIT principles use tools, and techniques that allow Riordan Manufacturing “to produce and deliver products in small quantities, with short lead times, to meet specific customer need” (Chase, Jacobs, & Aquilano, 2006).

The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached

To reach this goal, first all the processes in the plant need to be scrutinized. Second, problems need to be identified, analyzed and solved in the manner of Kaizen. The third objective is, to implement quality control on the running belt. With these measurements we're converting the factory step by step from a batch process to a JIT production.

As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,

Manufacturing operations are crucial to our company. To be successful and satisfy consumers, Jaguar Land Rover must have an efficient line of production. The operations management team is primarily concerned with overseeing, designing, and controlling the process of the business operations in the production of our goods. While we have been prosperous in the past, it is critical that we change our production process from just-in-case manufacturing to just-in-time manufacturing. Not only will implementing this new practice allow us to maintain our success, it will also allow us to surpass it and achieve an entire new level of prosperity.

With JITD, the number of urgent order will be decrease. Barilla can put more focus on managing the standard order with the normal manufacturing setup. Extra work on rearranging the production line will not be required frequently. The whole operation can be more efficient and standardize.

4) Exploring the possibility of implementing JIT (Just in Time) system that can reduce the finished goods inventory at

JIT: It quickly responds to the demands of the target customers by using JIT manufacturing technology in order to meet the fast changing fashion and trends. JIT is a pull strategy of production where we make products on the basis MTO(Make to Order) or ATO(Assemble to order). In Zara, they purchase the fabrics un-dyed in order to allow faster response for mid season color changes.

According to [5], Just-in-Time (JIT) inventory management enables an organization to gain competitive advantage by not having a large or excessive amount of inventory in warehouse. The organization only needs to order the parts when they are actually needed and new materials are produced only when old materials have finished. One advantage of adopting this strategy is that there will be no excess of inventory that needs to be stored and hence the inventory levels will be reduced as well as the cost of carrying and storing goods. One major disadvantage of this is that the organization will expose it in the risk of ordering problems for example a supplier is not able to provide parts on time. The result of this is that the organization cannot fulfill the order and contributes to customer dissatisfaction.

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Honda was among the pioneers in using JIT (Just-in-Time ) inventory model. Honda used this model successfully without large amounts of inventory. Honda mostly focuses on only purchasing what is guaranteed to be used and sold so that it doesn’t remain in inventory for extended time. Honda lower its month to month inventory costs in order to compete with the North American counterpart who have large amounts of inventory holdings. Honda uses JIT model because that will enable the company

Just-in-time(JIT) may be depicted as an augmentation of the original concept dealing with a material flow in a factory to decrease the stock levels. Actually, there is much more included in assembling/manufacturing associations than diminishing inventories to control costs. Assembling needs to manage different issues such as:-