...The advent of technology and globalization has increased the potential for earning higher profits for businesses, but at the same time it has also escalated competition and the pressure to perform better, faster and at a lower cost. In order to survive, companies are forced to find innovative ways to cut costs and establish effective supply chains to reduce their overheads. Using the Toyota pioneered Just In Time (JIT) analogy, which emphasizes the need to have just the required parts, quantities and time needed for production and distribution. Using JIT, Toyota, Boeing, Dell and HP have substantially reduced their warehousing and work in process costs. Over the past decade, JIT has transformed from a manufacturing methodology to a profound manufacturing organizational model. However, by stretching supply chains globally, as pointed out by Evans, 2011 companies are exposed to greater catastrophe because they outsource many parts of their business to suppliers or service companies thousands of miles away. If any one link in the supply chain goes wrong, it can have a huge impact on the returns. This increased fragility of supply chains can be observed with the factors mentioned below. One of the main principles of JIT is centered on reducing waste. Auto manufacturers started using common parts across multiple product lines and consolidated suppliers in order to procure parts in greater scale. These practices helped reduce waste, but also introduced risk. If any of these suppliers...
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...failure in the hope/belief that the failure can be repaired before the stock runs out. This type of stock can be eliminated by programmes like Total Productive Maintenance Overproduction is held because the forecast and the actual sales did not match. Making to order and JIT eliminates this stock type. Lot delay stock is held because a part of the process is designed to work on a batch basis whilst only processing items individually. Therefore each item of the lot must wait for the whole lot to be processed before moving to the next workstation. This can be eliminated by single piece working or a lot size of one. Demand fluctuation stock is held where production capacity is unable to flex with demand. Therefore a stock is built in times of lower utilisation to be supplied to customers when demand exceeds production capacity. This can be eliminated by...
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...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 setup and equipment breakdown. Just-in-time applies to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that of an assembly line. JIT can be traced back to the late 1700’s. Eli Whitney contributed his concept of interchangeable parts to the idea of JIT manufacturing in 1799. The basic elements of JIT were developed by a Toyota motor company in Japan in the 1950’s. In order to begin use of JIT manufacturing in Japan, they first researched American production methods focusing on Ford’s practices. In Japan Just-in-time manufacturing...
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...and just celebrated its “Golden Anniversary”. The company has very strong customer orientation and very operations oriented. However, the working capital requirement to sales ratio is quite high at 0.115 last year compared to a industry average of 0.05. Thus, there may be some potential problem about working capital. According to the analysis of the newly hired CEO John Cummings, the company has abnormal high inventory level which is much over the required sales level. Therefore, inventory management could be the first step to look into the working capital problem of the company. Inventory Management Analysis Currently, the company adopts an ordering system of ordering five times a year, 750 crafts each order. The holding cost per unit is $333 and ordering cost per order is $320 (Table 1). Furthermore, taking the cost of capital, which is 15% for the company, the annual cost of current ordering system would be $28,457,437(Table 1), which is the net present value of the cash outflow for the 5 orders in the year as well as the holding costs and ordering costs. However, if the company adopts the just-in-time inventory management system, the company could order 110 every one and a half week, which means 35 orders per year and the last order would only order 10 crafts to match the required order amount per year. In addition, the ordering cost would be increased by $50 per order as the company has to do the forecasting for the inventory and sales based on a just-in-time...
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...Businesses and Inventory Systems Inventory Systems Inventory systems are tracking systems designed for companies to maintain an accurate accountability of products in stock or on hand. Each time items are added or removed from inventory items on hand either decrease or increase in number. This paper will review inventory systems within Starbucks, Wal- Mart, Dell, Arby’s, and Starbucks. The paper will also provide information regarding the success of the inventory systems and if the companies are happy with the current systems. Businesses and Inventory Systems Dell is a leading global software company that manufactures desktop computers, notebook computers, network servers, work stations, and storage products. Dell uses the Just-In Time inventory system. Just-In-Time means a company can receive raw materials just in time to go into production and complete and assemble manufacturing parts just in time to ship to customers (Accounting 4 Management, 2012). The advantages of the Just-In-Time system are that it permits Dell to reduce overhead and have certainty that products are available. The Just –In-Time inventory system reduces the cost of doing business. For example, Dell does not have to spend an enormous amount of funds on the cost of warehouse storage and the customer receives the benefit of lower cost for products. The company has a high satisfaction rating because of their ability to produce products at a fast rate. The challenge includes the possibility...
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...and “reduce setup cost” make sense in services? Supply examples to support your work Just in Time (JIT) is an operational philosophy initiated at Toyota Company in Japan. For many years, JIT system was of great interest and was applied mainly in manufacturing companies. Most recently, JIT began to migrate to non-manufacturing environments. Some of these non-manufacturing environments are the business services; examples: health care, mail-order, hospitality sector, consulting, education, legal services, utilities, real estate, and many others. The implementation of Just in Time System in the service sector is similar to that in the manufacturing sector. The goal of this document is to explain some important aspects of Just in Time in services; these aspects are suppliers, layout, inventory and scheduling. Suppliers. The main goal of both service companies and suppliers is to satisfy customers. Business services that have adopted the Just in Time system depend on the quality of the suppliers to satisfy customers through quality of service. Key points to obtain quality in supplies and reduced waste depend on having just a few suppliers based on a strong relationship, on how close suppliers are located, and on the quality of delivering on time. Quality and on time supplies make it possible to offer better quality of services at lower cost and higher customer satisfaction. Layout. Just in Time layouts diminish the waste of movement, both movement of materials and people. Using JIT...
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...TABLE OF CONTENTS 1.0 INTRODUCTION 2 1.1 The importance of Just In Time (JIT) 2 1.2 The Objectives of the study 3 1.3 The Research Methodology 3 2.0 LITERATURE REVIEW 5 2.1 The Definition of JIT 5 2.2 The Purposes of Just In Time 10 2.3 The Importance Elements In JIT Implementation 12 2.4 Difficulties and Issues Associated with Implementation of JIT Components. 23 2.5 Main Issues and Difficulties of Managerial Nature in JIT 30 2.6 The Benefits of JIT 34 2.7 The Limitation of JIT 36 2.8 The Relationship Model and Supporting Activities of JIT, TQM AND TPM 41 2.9 The Relationship between JIT Production and Manufacturing Strategy and their Impact on JIT Performance 43 3.0 FINDINGS 50 4.0 CONCLUSION AND RECOMMENDATION 59 REFERENCES 61 APPENDIXES 64 INTRODUCTION The Importance of Just In Time (JIT) Nowadays, companies used Just In Time (JIT) systems control work flow by bringing in materials and sending out goods on demand which is ideally, just enough to provide what consumers want. JIT also is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. In just in time manufacturing system inventories are reduced to the minimum and in some cases they are zero. Companies typically hold inventory in three locations which are raw materials, work-in-process inventory of partially worked materials or sub-assemblies for workstations to complete...
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...Inventory Systems QRB/501 July 15, 2012 Inventory Systems All businesses use an inventory system whether they realize it or not. In this technological age and global economy many types of inventory systems have emerged to help business run more efficiently. From the smallest “mom and pop shop” to the global giant Wal-Mart an inventory system is needed to keep track of products and turnover to ensure there is just enough in stock for the consumer. The larger a business the more complex the inventory system has to be to keep track of that inventory. Manual Inventory, Just in Time inventory, and RFID inventory are methods used today to keep track of materials and merchandise. There are advantages and disadvantages to each type of inventory. Manual Inventory The oldest and most common form of inventory is manual inventory. This basic form of inventory management is used all over the world for small businesses. A small business may start with this form of inventory using a spreadsheet to keep track of inventory turnover. This type of inventory costs little to start and requires almost no training (Hamlett, 2012). It may be sufficient for a business that sells very few high dollar items. An example would be a boat dealer who has a low volume in sales and can clearly see their inventory. Some businesses make what they sell and need to keep an inventory of ingredients used in the creation of their product. An example would be...
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...lots of the nation's jobs as well as impacts the economic system on several stages. The government has already provided producers as well as buyers several incentives and plans in order to entice sales. Given the good reputation for the sector, it will recover over time; however the period of time just like a number of other factors is still not clear to the general public as well as economic experts alike. Conclusion The auto sector is in unstable territory because the country still holds its breath hoping for the best but expecting the worst. This sector has lots of the nation's jobs as well as impacts the economic system on several stages. The government has already provided producers as well as buyers several incentives and plans in order to entice sales. Given the good reputation for the sector, it will recover over time; however the period of time just like a number of other factors is still not clear to the general public as well as economic experts alike. Conclusion The auto sector is in unstable territory because the country still holds its breath hoping for the best but expecting the worst. This sector has lots of the nation's jobs as well as impacts the economic system on several stages. The government has already provided producers as well as buyers several incentives and plans in order to entice sales. Given the good reputation for the sector, it will recover over time; however the period of time just like a number of other factors is still not clear to the...
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...Definition of Just-in-time It is a method of planning and controls an operation that aims to meet demand directly with perfect quality and no waste. Just in time also known as a systems approach that is used to develop and operate a manufacturing system in which it will organizes the production process so that parts are available only when they are needed it. This system is used as a method for optimizing processes that involves continual reduction of waste and reducing non value added costs and long run costs such as reworking defective products, product inspections and quality control which are some example of non-value-added costs. The Just-in-time used to be the management philosophy of continuous & forced problem solving and it is categorized as a pull system in term of production & purchasing where the system will control the materials whereby to use signals to the supplier or provider that there a more material is needed. This process occur by which the downstream work centers will request delivery from upstream work centers and these will be known as lean production. By implementing the Just-in-time in their production, it will act to attack all the wastage in the production process in terms of product that has not added any value to the product by the perspective of their customer. The system also will expose all the problems and bottlenecks that have cause by variability towards the product. It is also used to achieve the streamlined production by reducing...
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...E-ticket System Object-Oriented Analysis & Design with Unified Modeling Language by Lai Chi Wa 03011674 Chung Wang Leong 03011615 Group Number: 3 COMP 2221 Lecturer: Prof. Jiming Liu December 4 , 2004 Table of Contexts |0 Notation |-3- | |0.1 Notation of Use Case Diagram |-3- | |0.2 Notation of Class Diagram |-4- | |0.3 Notation of Sequence Diagram |-5- | |1 Introduction |-6- | |1.1. Goals and Objectives |-6- | |1.1.1 Goals and Objectives |-6- | |1.1.2 About this project |-6- | |1.2 System Statement of Scope |-7- | |1.2.1 General Requirements(functional) ...
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...Just in time strategy Introduction the objectives of this presentation is to introduce the concept of “JIT” and its efficiency in cost-effective operation in both product and service manufacturing. This strategy is widely used nowadays due to its ontime delivering of the right product/service at the time of its demand. This is a system that is highly used in many industries. In this essay we will see the example of the most common industry using JIT manufacturing, the automobile industries and explain why this method is so effective and widely accepted. Definition/ General Description Just-in-time method is based on the total elimination of waste, producing goods and services only when needed withought having to store inventory or have the customer waiting for the product/service. In other words, it is based on producing only the necessary parts in the necessary quantities at the right time by matching the production rates with the market demands at that time. Due to the fact that the materials arrive just in time for manufacturing, there is no need for storing inventory as mentioned previously. By these we can see that it operates at low cost and in reality generates profits. The “JIT” method has a positive effect on productivity and work performance and it’s overall cost-effective. The most common industry using JIT manufacturing is the automobile industries. I “JIT” and Toyota Production Systems History The idea of JIT manufacturing goes back to the Toyota...
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...monitoring differs from the monitoring of Windows based computers. This research paper is not to compare the two systems but to gain an understanding of how UNIX monitors performance. I don’t have any personal experience with working with UNIX systems, but as always eager to gain insight of different operating systems. The first thing I would like to discover is some of the common performance problems encountered caused by software, hardware and the combination of the two, the different terminologies associated with the processes via hardware or software, and finally what different utilities are used for monitoring these problems. We all know that UNIX has been around since the early 1970’s and the developments of performance tools have been around for a long time to enable system administrators in tuning systems for optimal performance. Operating systems performance problems normally involves process management, memory management, and scheduling. The object of performance on UNIX based systems is to determine the amount of time the operating system spends during scheduling and the amount of time for applications to run (Unknown, 2003). Windows based systems establish an appropriate ration between time in application mode and time in system mode (Unknown, 2003). I will get more into UNIX based systems and how these monitoring tools are used to keep our UNIX based system running at optimal performance. First we must understand that performance monitoring...
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...flush accounting is one of the accounting systems that support Just in Time system. Just in time is the inventory system that produced the required items at the right time and the right place. Accounting was delay the recording of transaction during process is known as back flush accounting. The system is the transaction was only recorded once the product was completed. Back flush accounting is the system that focuses on the output of organization and then work backwards when allocating costs between costs of goods sold and inventories, with no separate accounting for work in progress. According to ACCA article, in back flush accounting costs are not associated with units until they are completed or sold. Back flush accounting is also called delayed costing, as costs are not allocated to production until after events have occurred. From view by other author, back flush accounting is a costing system that omits recording some of all of the journal entries relating to the cycle from purchase of direct materials to the sales of finished goods (Robert, 2011). According to Grahame Steven, Financial Management 2006, an approach called back flush accounting has been developed to meet the requirement of JIT manufacturing which on it is not a sequential tracking system and does not account for individual transaction. Backflush accounting meshes well with Just-In-Time production system because, according to the Tax Shield Education, both Just-In-Time production and the process of backflush...
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...EXECUTIVE SUMMARY Operations Management plays a vital role in all the forms of organisation. Lack of operations management can lead to the failure of the business. In the following report we discuss the world’s largest automobile industry the Toyota Manufacturing Company and also some of the various principles with description and are useful in the operations management such as Just in Time, kaizen, vertical Integration, Toyota Production system and the Vertical Integration. These principles play a major role in the effective production and operations of Toyota as well as most of the other organisations. Let us now discuss the principles of operations management beginning with the history and background of Toyota. INTRODUCTION Japan is the world’s second largest automobile nation with 73 million vehicles on the road. Toyota is a Japanese company founded and formed by Kiichiro Toyoda in the year 1936. He was given a full strong support by his father Sakichi Toyoda an industrialist who use to invent Toyota Model G automatic loom. In the year 1937 the Toyota Motor Company Ltd was established. Since then it grew rapidly in the recent years. The success of the company was based on the principles of innovation and both for its products and the processes to make the product. At the start of the company the aim was to produce reliable and efficient cars in Japan. The company was very well accepted by the people and since then the company touched the heights...
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