Jit Management

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Supply Chain Management is a term used to describe the relationship that exists between an organisation and its network of suppliers and buyers. Just-In-Time (JIT) management is the ability of an organisation to integrate its systems and processes with that of the supply network. Describe a supply chain where this occurs and discuss the challenges and benefits of the JIT methodology.

A Just -In -Time System is a system which organizes the resources, information flows, and decision rules that enable a firm to realize the benefits of JIT principles. (Larry P. Ritzman)
The main purpose of a just in time system is to eliminate through improvement activities various kinds of waste lying concealed within a company. During periods of slow
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By Tuesday, Toyota had to close down all of its Japanese assembly line. By the time the supply of brake parts had been restored, Toyota had lost an estimated $15 billion in sales” (Just in Time (JIT) Manufacturing and Inventory Control System, 1997). Toyota was lucky to escape with just a huge loss as many other companies wouldn’t be able to survive with such a significant loss. A different supply chain management system such as Material Resource Planning (MRP) wouldn’t be faced with that problem such as Toyota as they would almost certainly have enough brake parts already in stock ready to be assembled. However, extra caution is needed with JIT because without the use of backup inventories, the arrival of material must be accurate and continuously fine-tuned. In addition, the material must be of usable quality and workers must use this material properly in the production process. Just in Time production is heavily relied upon the company forecasting demand in the future to analyse how much will be needed in future months to come. Another problem which exists with JIT is if there are external factors which influence the time it takes for your product to be delivered. This is evident in the manufacturing company Dell which were hit by a unforeseen problem in 2002.
A 10-day labour lockout stopped the labouring of 10,000 union dockworkers, shut down 29 West Coast ports extending from Los Angeles to Seattle, and blocked
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