Key Factors Of JIT Strategy

It is important to implement the right and winning strategies fit into the company’s internal and external situations which can enhance the organization performance, build sustainable competitive advantage and uplifting company’s productivity.

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

As a result of these benefits, the JIT system has been particularly effective for companies with a high customer demand on newly developed technologies such as computers. If the product is produced when required and as specified by the customer, this not only allows the customer to order exactly what they want with modern technology, but it also benefits the manufacturer who is guaranteed a return on the goods straight

There are 10 basic tasks for “The action agenda for executing a strategy”. These 10 tasks are: Build the organizational capabilities required for successful strategy execution, establish a strategy supportive of organizational structure, and allocate sufficient resources to the strategy execution effort, Institute policies and procedures that facilitate strategy execution, adopt best practices and business processes that drive continuous improvement, install information and operating systems that support strategy execution activities, tie rewards and incentives directly to the achievement of strategic and financial targets, instill a corporate culture that promotes good strategy execution, exercise strong leadership to propel strategy execution forward, and staff the organization with the right people for executing this strategy. If managers execute these 10 tasks well, the company has a higher success rate.

A third disadvantage of applying JIC manufacturing operations is having lower quality assurance methods and even further, lower customer satisfaction (“Just-in-case and just-in-time…”). While the just-in-case system is beneficial in

It is important that the defined strategy, together with the reasoning behind it, be communicated to all levels of the organization. In large companies, it often happens that those that defined the strategy are not the ones that will see it through during the next step, therefore communicating well will ensure effective

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,

Being able to understand the differences between a company’s intended strategies and the evolution of a company affected by external forces. strategies that were planed and measured by goals that were set as a company would be considered intendent strategies. When it comes to emergent strategies they would be classified as decisions made by the company that were reactions to new innovations and the always changing consumer need. Failing to be able to adapt to the changing conditions of the market would not only signal a break down in the organizational structure but also could be the end of the company. A strong intendent strategy is very important when it comes to giving a company direction and setting goals for

There are three factors that can be affected by this strategic implementation which are, communication, decision making, and coordination among the different teams in the company. The employees behaviour is expected

Reducing changeover times is a fundamental requirement of any company to take lead over the other in production and maintaining top position. By understanding the principles and practices of the SMED system organisations will be able to cut changeovers by over 50% with very little expenditure, and to single minutes with the modification of tooling and fastening systems. Single Minute Exchange

In the book “Good Strategy and Bad Strategy”, Richard Rumelt illustrates examples of success and failure of business management to explain the true meaning of the strategy, and tells companies how to develop a correct strategy and adhere to core of management strategy. He also emphasizes the central role of strategic management as to remind the readers to understand the huge difference between a good strategy and bad strategy. This book has three sections: good and bad strategy, sources of power, and thinking like a strategist. I will be evaluating strengths and weaknesses under these topics. After finish reading the book, I had gained a better understanding of what a good strategy means to the success of a company. According to Rumelt, a good strategy is coherent, where companies pursue multiple objectives that are connected with each other. Rumelt points out that a good strategy consists of three elements: diagnosis, guiding policy, and coherent action. (71) First, diagnosis means to define the obstacles and challenges that the companies are facing, and guidelines help the people to overcome the obstacles. Lastly, coherent action is the activities or actions that company did to be consistent with its guiding policy. Today, many of us lost the focus of the strategy, which results in the downward of businesses and organizations. Rumelt has defined the strategy as acknowledging the main problems and take coherent action to overcome the problems. Moreover, he illustrates

Procter & Gamble (P&G), a well-known FMCG producer who provides home care and beauty and grooming products, is one of the companies that have a robust process to implement its strategy through the whole organization. The 177-year-old company has a very large size of organization with 121,00 people (Forbes, 2014) that makes the strategy planning and implementation very difficult. The consistency of strategy translation from management level to the execution level can be an issue while setting target for each sub-department, especially one with less understanding about business like manufacturing operation. Alignment between departments or individual can also create conflicts and misunderstanding, which will lead

Organizations successful at strategy implementation effectively manage six key supporting factors :     1.  Action Planning

Lean is a perfect way of approach if any task is to be done instantly and without waste which eventually helps in saving working capital and productivity. JIT(just-in-time) is a concept introduced by Toyota group to improve return on investment on inventory, which is also known as Japanese manufacturing management. According to general manager it may be possible using JIT techniques. The below are the considerable points to conclude with the appropriate decision.

These firms apply JIT to their total business. Droy stated that improving the manufacturing firm’s information flow through application of JIT techniques can decrease a 10-12 week lead time to two weeks.