Theories and Techniques
A. Summarize the following theories: just in time (JIT), Toyota Production System (TPS), and Lean. How are these concepts related? Describe the advantages and disadvantages for using each of these concepts at the company presented in the case study. 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
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The advantages of lean operations are that they cut costs, save time, and are easy to monitor. The disadvantages are difficult implementation.
When used as a complete strategy these three systems sustain competitive advantage and increase overall returns. The major differences between JIT, TPS, and lean operations is that JIT emphasizes forced problem solving, TPS emphasizes employee learning and empowerment in an assembly-line environment and Lean processes emphasize understanding the customer.(Heizer 626)
Sustainability
Describe how the emerging concept of the triple bottom line can be used to enhance operations management at the company. Be sure to address each component of the triple bottom line. The triple bottom line is an accounting framework that incorporates what is commonly referred to as the three P 's: people, planet, and profit. People: The emergence of the triple bottom line has led to companies becoming more aware of how their decisions affect not only employees and customers but those within the community they operate in. To achieve this in an ever changing global world a company needs to create policies and guidelines on how to select suppliers and evaluate performance. Planet: Operations managers are always looking for ways to reduce companies environmental impact on the earth, and they achieve this through careful selection of raw materials, process innovations, alternative product delivery methods or disposal of end of life
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
Triple Bottom Line accounting brings light to the importance of accounting for Environmental measures, as it helps a company track their ecological footprint and make plans to improve it. A company can be profitable for several years, however if
This paper explains the history of the triple bottom line, and the different things they measure to ensure the bottom line is actuate. It also talks about what it means for a company to follow the bottom line. Also about PetSmart and how they follow the triple bottom line, what they do in order to make it work for them.
The three practices work in conjunction with one another in order to optimize improvement in all products and services. The development of TPS was a major precursor of Lean manufacturing. Lean like TPS and JIT focuses on continuous improvement. The main difference is lean is customer focused, if it does not add value to the customer it is not added (Heizer & Render, 2014). By implementing Lean Nissan can provide their customer what they want
In today’s business world, competition is fierce and manufacturers are struggling to squeeze out operational costs reductions. To stay in competition, more and more organizations are trying to determine what improvement method will work best and fit best with their culture. Each improvement methodology appears to be driving toward common tools and concepts. However, different methodologies begin the journey from different perspectives. Even though each improvement methodology contributes valuable concepts, ideas and techniques to every organization not all of them serve to the needs of organization if leadership doesn’t
These theories have been used by Nissan to improve their productivity. However JIT and Lean Combined together makes Toyota Production System. For more clarity I am discussing each theory individually first is JIT is a continuous process and it forces problem by reduced inventory. With this theory only material are called when they are needed according to the demand. The JIT is also broken down in to five segments which are JIT Partnerships which exist when a supplier and a purchaser work together with open communication and a target of removing waste and lowering down the cost. The second is JIT layouts which is designed to reduce the movements. JIT materials layout place material directly where they are needed. The third is JIT inventory which works to overcome any hurdle if arises in the way. The fourth is JIT scheduling where effective schedules are communicated both within the organization and to outside suppliers. By being able to utilize these methods Nissan would able to overhaul their process and work to create a JIT environment to utilize all methods and start saving tremendous amount of overhead and expenditures. Like other theories there are some advantages and disadvantages of JIT. Advantages include efficient replenishment systems, more free space, less manpower required to maintain the inventory levels. The disadvantages are Vulnerable to any demand fluctuation caused by reason i.e. natural disaster, dependency on their supplier is high because of the timely
It is a sustainable model for business that balances financial success, community participation together with ecological sustainability. The firm which employs triple bottom line towards capturing the set significances, processes as well as issues of the company might decrease and determine whichever harms resulting from their operations then create economic, social as well as environmental values of that the company . It is typically outlined that any is supposed to take into account the needs of the company 's shareholders, employees, stakeholders, governments, clients, business partners, local communities together with the entire public. Reporting through Triple bottom line (TBL) is currently turning out to be more ordinarily used across several sectors within society. Even though the notion was born outside any business
Toyoda’s primary viewpoints in his system embrace the theories of just-in-time and Jidoka. Just-in-time (JIT) focuses on productivity improvement with the main idea being, “making only what is needed, when it is needed, and in the amount needed”. The main goal for JIT was to effectively build a car within the shortest possible amount of time by obeying four guidelines. The first rule states that when the first order is established it must be brought to the start of the assembly line as
For instance, according to Stevenson, lean operation is a flexible system of operations that uses considerably fewer resources than a traditional system. For example, Lee’s Transportation owned by Tony and Lisa Jones, can no longer operate due to several vehicle accidents caused by their drivers. This has resulted in an increase in their insurance premiums with All State and the premiums are too expensive for them to maintain their business. This unfortunate situation has caused a great hardship and Tony and Lisa have no other option than to discharge their employees. Eventually, they coordinate with a business partner and financial advisor and are able to start their company again under a changed name, Loving Hands. They are now able to obtain insurance coverage through State Farm.
In this essay the method of production, Just-In-Time (JIT), will be examined. The historical background of JIT and its impact on the manufacturing industry will also be discussed. An important highlight of this paper will be the discussion of push versus pull and how it relates to JIT. Lean manufacturing and its relation to JIT will also be addressed. Finally, the relationship between JIT and a Kanban manufacturing system will be highlighted. Information from scholarly research will be utilized to determine whether JIT can be implemented without Kanban. The essay will conclude with the current status of JIT and its future relevance in the manufacturing industry.
Traditionally, financial reporting discloses only financial information to determine its financial performance. However, nowadays, success of one business is no longer solely depending on monetary gain, instead the impacts of companies’ activities have on society and environment as a whole is highly important. This trend has come across to increase the public expectation for organization to take responsibility for their non-financial impacts for example the impacts on the environment and community. Hence, Triple Bottom Line (TBL) which was first described in 1994 by John Elkington can be an ideal integrated approach that fit in to this approach in order to support the sustainability growth of the companies. Triple Bottom Line
Just-In-Time is the assessment of product production time and immediate resource requirements to conduct uninterrupted product production within a prescribed period (Toyota Motor Manufacturing, 2015).
The basic elements of Just In Time (JIT) were developed by Toyota in the 1950 's, known as the Toyota Production System (TPS). JIT was well-established in many Japanese factories by the early 1970 's. JIT began to be adopted in the U.S. in the 1980 's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used. There have ten basic elements in Just In time which are flexible resource, efficient facility layout, pull production system, Kanban production control, small lot production, quick setup, uniform production, quality at the source, total production maintenance and supplier network.
Just-in-time is a concept developed by Toyota and introduced during the 1950s and 1960s that has the characteristics of a pull system, meaning required inventory is only produced or used when demand is “pulling” to do so. After the inventory is used up, only what is needed to replace what has been used is manufactured. Because goods are only produced to keep up with demand, there is minimal inventory which can cause a reduction in overhead and an increase in responsiveness. JIT systems are based on the pull concept rather than the push concept, where products are manufactured in advance in anticipation that there will be a consumer demand (Collier 379). Many companies are motivated to implement just-in-time, or JIT, systems because it avoids time, cost, overhead and forecasting that is associated with keeping inventory on hand much like a push system (Kokemuller).
Every company, firm, or organization has a need to know and understand how to plan for production and the inventory needed to sustain it. During the reconstruction following World War Two an atmosphere was present that enabled pioneering minds just as Deming to institute several industrial theories into practice. Having embraced the concepts whole heartedly, these theories enabled post war Japan to become a world leader in development and production. According to Evans & Lindsay (2010), these concepts began to take root and have great effect on how business was conducted globally. One of these concept that still to this day are displaying complete relevance is that of Just-In-Time (JIT). It must be understood that JIT in time is only a supporting process of larger concepts such Lean production and inventory control, and how they interact with push or pull of materials within the production plan; How the concept of Kanban can be instituted to farther support the JIT process.