Just in Time

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BUS 320 – Group Research Project “JUST IN TIME” Just-in-time (or JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit. Just-in-time can also be defined as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It has been described as an approach with the objective of producing the right part in the right place at the right time, hence the phrase Just-in-time. JIT should improve profits and return on investment by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs, such as those associated with machine…show more content…
After Dell has received a customer order, they then begin production of the product. This exemplifies a pull system within the supply chain. A pull system by Dell’s standards is reactive whereby production is executed in response to a customer order. This system provides Dell with a competitive advantage within its industry allowing them to become the market leader. Dell and Toyota are two model companies of just in time. They effectively get the right products to their customers when they need it. Both companies have achieved a competitive advantage within their industries due to utilizing the just in time process and allowing visibility between them and other members of the value chain. Southwest airlines are another example of a leading company that uses just-in-time. What makes Southwest airlines outperform their competitors is its ability to do the basic routine work of running an airline quickly and efficiently. This is contributed to Southwest airlines turning planes around at the gate and also through preventative and scheduled maintenance. They’re flying the same fleet and hiring from the same labor pool, however they are sending out extra flights per day, per plane and crew and that flips them from a breakeven or loss-making position to profitable. There are a

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