Effectiveness Of A Time System

It is becoming apparent that the ever changing environment in the global marketplace requires a swifter response time from businesses and their supply chains. The era when production was moved overseas, so businesses can take advantage of low-cost labor is coming to an end, because businesses are not only competing on price but also on time. The owner of Zara, a Spanish clothing store knows this first hand, and has turned supply chain management on its ear, making his company the “envy of the industry” (Ferdows, Lewis, & Machuca, 2004).

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

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

Businesses benefit from having a good relationship with their suppliers of raw materials and components. In manufacturing, companies are adopting “Just-in-time” manufacturing. This means that businesses only produce when they have an order, and they only get materials delivered when they are needed. Businesses require reliable and efficient suppliers to be able to order their stock last-minute.

Flinchbaugh, J. (2012, December 17). Lessons from the Road: Reducing Lead Time Changes Everything. Retrieved April 02, 2016, from http://www.industryweek.com/

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.

They can operate on a just in time method, when they get a constant understanding of demand. This way they can cut production costs, by only making what they need. They can also predict when they need more inventory to make sure that they never run out of stock for their customers to purchase.

The company also reduces inventory management cost by maintaining low inventory or just-in-time inventory which is a good technique to gain competitive advantage.

This article basically is discussing about different level Spanish auto components industry adopts Just in Time which can be categorized in terms of practices for operational and complementary and whether adaptation of Just in Time purchasing can improve operational results. This result is quantitative based where questionnaire were used to gather data. A total of 397 questionnaires were distributed to the automotive suppliers in Spanish. Only150 out of 397 questionnaires or 37 percent of the total questionnaires were returned with sufficiently completed and these results were used for the research. In this research, the authors also focused on the comparison between the Just in Time operational practices and complementary practices and how the use of these practices can affect the firms’ performance. The results showed that Just in Time complementary practices are better than operational practices in terms of reaching a higher level in the

Just-in-time delivery needs good collaboration with vendors of distribution services and of products. The distributor needs a continuity of demand and the chance to define routes, loads and schedules well ahead. By working toward longer-terms, higher-volume procurements with vendors, prices can be cut due to larger transport volume over a long period of time. Just-in-time delivery will cut down the operating costs if the business is substantial for the distribution partner. Just in time delivery needs more frequent deliveries from vendors however it does not voluntarily imply higher transportation costs.

In the article Time Compression and Supply Chain Management - A Guided Tour (Towill, 1996) the author contends that cycle time compression (CT), when coordinated with advanced production scheduling techniques incouding Just-In-Time (JIT) supply chain , can deliver signification financial performance gains for an enterprise. The authors also provide the foundational elements of the Demand-Driven Supply Network (DDSN) that has been proven throughout industries that have exceptionally rapid lifecycles and inventory turns (Ashayeri, Tuzkaya, 2011). The author also is careful to provide a full analysis of the most complex, time-constrained supply chains across a broad spectrum, all unified by goal of showing how time delay and transmission lags can be trimmed with the entire set of lean supply chain and production techniques. Using lean principles to achieve significant improvements in supply chain performance through value stream workflows is comparable to managing supply chains with cycle time compression (CT). The intent of this analysis is to evaluate how this can be achieved.

There are two main potential issues with this approach. By reducing production lead times a company would likely increase manufacturing costs, but this increase should be leveraged by the increase in demand. The other issue would be the drop of the utilization rate by ten percent using this method. The key would be training the staff to implement faster change-times, which is not an impossible achievement.

"Just-in-time" first proposes tools to strengthen organizational interaction, that is to say, to increase the interactivity between the organs or persons involved in the execution, design and decision.

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.

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