Table of Contents
INTRODUCTION_TUAN UYEN NGUYEN 2
MANAGING INVENTORY 3
KANBAN SYSTEM_KOMGROB KRAIHAN 3
ABC CORPS HELP DESK_ KOMGROB KRAIHAN 3
FEDEX_ KOMGROB KRAIHAN 4
COCA_COLA MANAGING INVENTORY_ TUAN UYEN NGUYEN 4
KANBAN SYSTEM TO JUST IN TIME METHODOLOGY_PHAFAN WEINGKAN 6
MCDONALDS _ PHAFAN WEINGKAN 7
ALDI_ PHAFAN WEINGKAN 7
MANAGING INVENTORY IN ACCOUNTING PERSPECTIVES_ TUAN UYEN NGUYEN 7
TOYOTA THE BEST PERFORMANCE OF MANAGING INVENTORY_ PHAFAN WEINGKAN 8
DELL_ KOMGROB KRAIHAN 8
HARLEY DAVIDSON_ KOMGROB KRAIHAN 8
CONCLUSION_ TUAN UYEN NGUYEN 8
REFERENCE: 9
Introduction
The most important part in supply chain management is managing inventory as company operation tries to minimize cost from supplier, manufacturing, and production. Regarding to inventory, the management accounting must have understand the basic of inventory management. There are a numbers of techniques including: ABC system, EOQ model, TQM, and JIT system. All those several system are relating in managing control as EOQ still has to be considerate in JIT methodology, or quality control is also important part in JIT.
As this report will go further investigate on how those company has implemented successfully Just In Time philosophy in reducing their cost. Just In time inventory has growth increasingly from the late 1970s, according to text book (langfield) manufacturing product-using JIT processing system. This method provides information from comparing to the pull system of production in reducing
Reorders are placed at the time of review (T), and the safety stock that must be reordered is:
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
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
William J. Stevenson, in Production/Operations Management, defines the term just-in-time manufacturing as “a repetitive production system in which processing and movement of material and goods occurs just as they are needed,usually in small batches” (Stevenson, 1996). However, just-in-time (JIT) is more than an inventory system. JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste (Ptak, 1997)
In the San Diego distribution center (DC) information flow example, dealers not being notified automatically of order status would be classified as
Broyles, D., Beims, J., Franko, J., & Bergman, M. (2005, April). Academic Mind. Retrieved January 19, 2008, from http://www.academicmind.com/unpublishedpapers/business/operationsmanagement/2005-04-000aaf-just-in-time-inventory-management.html
Anybody who knows something about business had heard the term Just-in-time (JIT) inventory. It involves producing only what is need, when it is needed. The principle of Just in time is to eliminate sources of manufacturing waste by getting the right quantity of raw materials and producing the right quantity of products in the right place at the right time.(1) In this way, manufactures receive parts and materials "just in time" to meet the day's manufacturing quota with hardly any extra.(3)
The average company spends nearly half of every dollar it earns on production needs—goods and services it needs from external suppliers to keep producing. A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
Reduction of Waste: By maintaining our current method we are housing products that go unused and/or become obsolete. This causes us to sell product at a reduced price often less than cost or we must dump the product with no money gained at all. The JIT inventory model should help to address this situation and by housing fewer products in the warehouses we could address our customer needs quicker and be open to customized orders.
Just in Time (JIT) is an approach of continuous and forced problem solving via a focus on throughput and reduced inventory. The Toyota Production System TPS. With its emphasis on continuous improvement, respect for people, and standard work practices. Is particularly suited for assembly lines. Learn operation supplies the customer with exactly what the customer want’s when the customer wants it. Without waste, through continuous improvement. Lean operation are driven by workflow initiated by the ‘pull” of the customer’s order. When implemented as a comprehensive manufacturing strategy. JIT, TPS and lean system sustain competitive advantages and result in increased overall return. If there is any distinction between JIT, TPS and lean operation, it if that
Just-in-time (JIT) is a management philosophy which was first developed by Toyota manufacturing plants to meet consumer demands with minimum delays (IfM, n.d.). It is based on the elimination of all kinds of waste and the continuity in the improvement of productivity. The implementation of JIT enables the production of goods to exactly meet the customers’ demand in terms of timing, quality and quantity (Bo, Chan &Wang, 2013). In other words, with a successful JIT implementation, the manufacturing plants are able to reduce the raw materials held and achieve an improvement in their production cycle and product quality. However, in order for the JIT system to be successful, a reliable corporation between suppliers and companies plays an important role
By taking a Just in time approach to inventory and product handling, companies can often cut costs significantly. Inventory costs contribute heavily to the company expenses, especially in manufacturing organizations. By minimizing the amount of inventory, you save space, free up cash resources, and reduce the waste that comes from obsolescence.
Toyota is famous for their production system called Just-In-Time inventory (JIT) strategy which is referred as a production strategy to employ an increase in the level of efficiency and reduce waste by receiving goods only in the form they are required in the production process; this reduces inventory costs. This method calls for the producers to be capable of forecasting demand accurately. The main benefits associated the Just-In-Time inventory strategy includes reducing the setup
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.