ABOUT THE CASEThe case stresses the importance of the famous management technique called JIT (Just In Time) and its use in one of the most well known company "HONDA". The case extensively discusses the features, importance, implementation, and the various problems of Just in time. JIT was first implemented by Toyota and the technique is very commonly used in many Japanese companies and HONDA is one of them. The main purpose of developing this case study is to understand JIT as an operation management technique in the business world and the problems associated with it. WHAT IS JIT?Just In Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated …show more content…
General Motors first "invited" Toyota to their California assembly plant and eventually struck a deal to co-produce cars in California. This technology soon spread to their other plants. The key to success by using JIT is for supplying accurate sales forecasting by distribution to the manufacturers. Manufacturers then must provide the distributors regional distribution holding grids or hubs where their product flows out to the end users. Federal Express started began using the "hub" technology in the 1970's. It was so revolutionary that The founder of Federal express Fred Smith got a failing grade from his college professor to propose this principle to run a company- just a few years earlier. The regional "hubs" would provide a logistical and competitive advantage to any manufacturer over another who would try and ship product from the factory. Typically a factory is not equipped to handle such a logistical hurdle. Furthermore most manufacturing plants today import product from a multitude of locations and suppliers. To combine their day to day buying, shipping, and also having a distribution center at the same facility- would become a nightmare. Therefore the regional "wheel- hub" logistical center makes more sense and more manageable. ABOUT HONDAThe history of the Honda Motor Company began with the vision of one man - Soichiro Honda. His dream was personal mobility for everyone. In October 1946, Soichiro Honda established the Honda Technical Research
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
Lastly, the just-in-time (JIT) approach is an operating philosophy that requires that all resources, including materials, personnel, and facilities, be acquired and used only as needed (Mazumder, 2007). The JIT approach works great for manufacturing companies because of their common classes of material that they use which are raw materials, work-in-process, and finished goods (Mazumber, 2007). According to JIT concept raw materials are received just in time to go into production, manufactured parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers (Mazumber, 2007). The
Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.
While the JITD program has many beneficial it also has its drawbacks. One of them is the perception that the power will be transferred to Barilla, as one of the distributors was quoted “we would be giving Barilla the power to push product into our warehouses just so Barilla can reduce its costs.” Another drawback is that some of the distributors are not comfortable or willing to share their warehouse data, which is a vital piece in order for JITD program to work. Furthermore, it might be hard for some retailers to report daily sales simply because they might not have the point-of-sale technology at their stores.
Honda has continued to embrace the changes that happen around its operations to ensure sustainability and profitability. The current global motorcycle manufacturing sector is full of competition. It, therefore, becomes crucial for every manufacturer to evaluate their strengths and weaknesses and then identify the opportunities to exploit to gain competitive advantage. Honda is Japanese based automobile company; it has numerous subsidiaries in Asia, Europe, and North America. Due to the advancements in technology, Honda will be required to make use of the latest technological trends to stay competitive. The business level strategy at Honda is in line with its enterprise and corporate strategy. The corporation also conducts Research and
Just In Time (JIT): A just in time approach maintains only required inventory in demand; it uses previous year’s statistics to dictate the amount of inventory to be kept on hand (Business.com). The benefits of a just in time approach are that it reduces inventory, shipping fees, depreciation, and doesn’t waste product.
As part of my assignment in manufacturing management I am to research the importance of JIDOKA within a company, I will start off with a brief history of how it all came about, I will then be looking into the practical elements of the system and why it’s been used and how it’s been a huge success for the Toyota company which has catapulted them ahead of all other manufacturers. Advantages and disadvantages will also be looked at.
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
In 1969, when Honda came to Canada, we came as a little association with a dream. We began with bicycles and power equipment and it took a huge amount of work to get the sureness and trust of Canadians. Regardless, we locked in and after some time our things earned the respect of the business focus. Along these lines we created. In 1986, we manufactured a gathering office in Alliston, Ontario. In 1998, we amassed a minute plant at that same site, and in 2008, we completed the improvement of
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,
Ans: Honda Motor company is basically a Japanese multinational company producer of motorcycles, power equipment and automobile. During the year 1960-1980 is the era of huge success period of the motor company. After gaining huge success in its home area company thought to penetrate in US market in 1959 onwards.
JIT inventory system provides constant quality of goods, if done properly. Less lead times, speedy manufacturing
Harley Davidson’s success with the implementation of JIT had a lot to do with the fact that when JIT was put into practice, process problems could no longer be hidden by costly inventory that helped to meet ship dates. The inefficiencies in the processes were quickly identified and solved.
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 is one of the world’s largest motorcycle manufacturers and of the leaders in the automakers industry. It was founded in 1948 by Soichiro Honda and Takeo Fujisawa. It’s headquarter is in Tokyo, Japan and it serves worldwide. Honda has 492 subsidiaries and affiliates accounted under its equity. The company develops, manufactures, and markets a wide range of products such as: automobiles, motorcycles, scooters, ATV’s, electrical generators, water pumps, lawn and garden equipments, robotics, jets, jet engines, and thin-film solar cells. In 2001, Honda became the second-largest Japanese manufacturer and in 2008, it became the fourth largest automobile manufacturer in the United States. Honda’s major products are