Using Jit As An Operational Improvement

1117 WordsApr 15, 20165 Pages
Introduction Lead production system was first introduced in 1940s by Taiichi Ohno at Toyota to reduce the cost of storage and the system was named as “Toyota Production System” (TPS) (Paton et al., 2011). Just in time (JIT) is a part of the popular TPS which is an inventory strategy that companies employ to make the exact number of items and only when they are required which is applied at every stage in a production chain. In other words, using a JIT supply chain system saves storage space by minimising stock on the premises. (Paton et al., 2011). This report makes an explorative study of the BMW’s supply chain which uses JIT as an operational improvement. The automobile supply chain needs an efficient supplier, a powerful production line, and distribution network along. The quality and delivery of supplies is a critical part of supply chains and the suppliers needs to be evaluated properly before selection. It’s important for the sourcing mechanisms to fulfil the requirements of the firm. In order to complete a product cycle, which is usually around 6-8 years, the supply and production chain must be capable to handle the changes in demand. An effective supply chain has become a competitive necessity to keep the production line running. The success of an automobile supply chain depends on the distribution network both up-stream and down-stream. The three important aspects of supply chain strategy described by Fawcett, 2007 are evaluation of customer needs, assess the
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