...Abstract Just in Time (JIT) inventory management has its benefits and setbacks which leads to the question on its eligibility to be adopted in organizations. It has some of the benefits of being cost effective and ensuring quality production. However, it faces unpredictability in the supply chain and meeting demand, both setbacks realized in adopting it. The magnitude of the benefits and setbacks can vary depending on the industry. The current study provides details on the advantages and disadvantages of employing the policy in the manufacturing industry with implementation examples specific to the car manufacturing industry. With the policy being pioneered by Toyota, and later used by Ford, the evidence that the two organizations have benefited substantially from the policy are obvious. They have had increased profits, customer satisfaction and the quality of their products. All while reducing costs associated with the storage of excess inventories, defective production, and waste. Strategies maximizing the use of a just in time policy and avoiding some of the disadvantages will also be discussed. Just in Time Just in time production first surfaced just after World War II in Japan’s Toyota Company. Modeled after Henry Ford’s continuous flow manufacturing, it focused on eliminating waste in the postwar Japanese market (Rona, 2013). Today just in time still emphasizes the reduction of waste, but also production and resource efficiency. These efficiencies are gained through...
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...industrialization? Capitalism is a type of economic and political system where business is controlled by private owners, rather than be regulated by the government, and Industrialization is the transition from an agrarian society to an industrial one, with improvements in technology and industry. Capitalism and Industrialization are two forces that have shown a high amount of synergy throughout history. With the rise...
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...time. To some extent, whether you choose to start another project after completely finishing a project or to work on two or more projects at the same time generally count on what kind of project you are focus on and the relationship between those processes. As a result, it is not appropriate to evaluate which one is better as their natures, usages and functions are different, having their unique values. As for the production line of the industry, creates by Henry ford, one of the most outstanding leaders and rose up to a fundamental change in industry, a car need to pass between scheduled productions, that is to say, it can only go on another project after the previous one is completed. This necessitates a regimented routine and highly increases the rate of production since workers do not work in the burst of intense labor alternating with more leisure time. The United States was once considered as “the country on wheels” after the creation of the production line. We can see through the success of Henry Ford that if the two or more projects are not affiliated or related to each other, starting another project after completely finishing one project can help us to focus on every pace and do each delicately. On the other hand, however, sometimes we need to take concerns on both projects, like the environment protection and the development of economy. An improving economy is the prerequisite of protecting the environment as it is ensure that people need to...
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...space if divided by these two oceans. The red ocean symbolizes the industries that are currently in present in the market. These industries serve as models for current competitors as well as future ones. On the other side, blue oceans are industries that are “not in existence today.” These industries are unknown and could be developed from red oceans or from completely new industries. The main difference between these two types of markets is the customer demand. Red oceans have fixed demand and competitors constantly compete against each other for consumers’ acceptance and attention. Blue oceans create a demand that did not existed before, generating greater opportunities for growth. Although the concept of red and blue oceans might be new for many, it has existed since the moment industries were created. In summary, red oceans are existing industries and blue oceans are unknown industries. When we look back, we realize that all industries that seem essential for daily tasks were once unknown. Long time ago, the pool of industries that conformed the red ocean was not as immense as it is today. As blue industries were introduced, the red ocean became larger. As of today, the Standard Industrial Classification (SIC) has been greatly expanded to include the new industries that have created throughout the years. As mentioned above, blue oceans can be created from red oceans or from completely unknown industries. Not all companies are successful at achieving this. The first step...
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...The 1920s was a time in America of extreme changes in society as well as in lifestyles and industries. New inventions were made. It was the time when the USA experienced its Boom, but what was the Boom, and did everyone gain of it? During the Boom USA underwent huge changes. It was experiencing a decade of a great business boom in almost every industry. New Jobs were created because things like radios, TVs Hoovers, washing machines, refrigerators were produced. Since the people were employed they could spent more money, and simply buying something had a major economic impact. It was all a circle. Someone had to produce what was bought meaning people were employed, he would then earn money for his work and usually spent some of it, buying goods produced by someone else introducing that someone into the cycle. Henry Ford also noticed that the demand for his cars rise, which lead to him producing more cars. As a consequence he introduced a whole new production way, called mass production. Mass production is the creation of many products in a short period of time, it’s a technique that aims for low unit costs and high output. Other industries took up his system and shopping habits changed as chain stores like Woolworth established. So people bought cars which caused an overflow in cars in the traffic system. Highways were built amongst them the famous Route 66. The Highway is also known as “the mother road” it runs through the USA, from Los Angeles to Chicago. Being linked to...
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...The 1920s was a time in America of extreme changes in society as well as in lifestyles and industries. New inventions were made. It was the time when the USA experienced its Boom, but what was the Boom, and did everyone gain of it? During the Boom USA underwent huge changes. It was experiencing a decade of a great business boom in almost every industry. New Jobs were created because things like radios, TVs Hoovers, washing machines, refrigerators were produced. Since the people were employed they could spent more money, and simply buying something had a major economic impact. It was all a circle. Someone had to produce what was bought meaning people were employed, he would then earn money for his work and usually spent some of it, buying goods produced by someone else introducing that someone into the cycle. Henry Ford also noticed that the demand for his cars rise, which lead to him producing more cars. As a consequence he introduced a whole new production way, called mass production. Mass production is the creation of many products in a short period of time, it’s a technique that aims for low unit costs and high output. Other industries took up his system and shopping habits changed as chain stores like Woolworth established. So people bought cars which caused an overflow in cars in the traffic system. Highways were built amongst them the famous Route 66. The Highway is also known as “the mother road” it runs through the USA, from Los Angeles to Chicago. Being linked to...
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...The Rationale of Capitalism in Terms of Utility Maximization. Gross Domestic Product (GDP) in purchasing power parity (PPP) in 2006 was estimated at US $1.134 trillion, and GDP per capita in PPP at US $10,600. The service sector is the largest component of GDP at 70.5%, followed by the industrial sector at 25.7% (2006). Agriculture represents only 3.9% of GDP (2006). Mexican labor force is estimated at 38 million of which 18% is occupied in agriculture, 24% in the industry sector and 58% in the service sector (200). Agriculture as a percentage of total GDP has been steadily declining, and now resembles that of developed nations in that it plays a smaller role in the economy. In 2006, agriculture accounted for 3.9% of GDP, down from 7% in 1990, and 25% in 1970. Given the historic structure of ejidos, it employs a considerably high percentage of the work force: 18% in 2003, mostly of which grows basic crops for subsistence, compared to 2–5% in developed nations in which production is highly mechanized. Crops: In spite of being a staple in the Mexican diet, Mexico's comparative advantage in agriculture is not in corn, but in horticulture, tropical fruits, and vegetables. Negotiators of NAFTA expected that through liberalization and mechanization of agriculture two-thirds of Mexican corn producers would naturally shift from corn production to horticultural and other labor-intensive crops such as fruits, nuts, vegetables, coffee and sugar cane. While horticultural trade has drastically...
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...bought drastic changes to society when they have come to existence. The existence of automation and mechanization has got up the second industrial revolution which has created a lot of sociological problems. Automation refers to the replacement of human muscle work. Eventually, Machine created vast difference comparing to man from the times. Since the Industrial revolution started from year 1700, demand for cotton was high but manual power didn’t reach to its level making dull business in the service sector but after inventing machine in industrial sector there was rose of production. Automation is using automatic machines which are processed by software programs and mechanization is manual power used for controlling machines. Most of industries use automated machines for their better productivity and sound business. Being in a technological era, machines are serving people. Machines produce fast and accurate outputs with ease and comfort. As a result, machines will substitute human labor. "It does not have political appeal to say the reason we have a problem is we're so successful in technology (Joseph Stiglitz, 2000) a Nobel Prize-winning...
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...a very wise philosopher deliver the overwhelming resolution of the theme of this book, Japanese Lean Production versus World Mass Production. The book provides a concrete foundation on the relationship between lean production and mass production and how lean production is shown to be a better technique within the automobile industry. A further review will allow for the facts to be born out. The book begins with an overview of the three techniques discussed in the book, craft production, mass production, and lean production. Craft production is characterized as having a highly skilled and decentralized work force who use “general-purpose machine tools” and yield low volumes of production. Generally, with craft production costs do not drop with production, consistency is not achievable, and new technology can not be created. This lead to an improved system called mass production. This technique perfected by Henry Ford replaced craft production in the early 1900’s. Mass production uses relatively unskilled workers to attach interchangeable parts together to create the automobile. Division of labor made this technique feasible and beneficial. Ford also used vertical integration to supply the necessary parts of the vehicles. Over time, decentralization became necessary. Overall, mass quantities were created at a low cost, but at the same...
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...MGEC40H3-Y ECONOMICS ORGANIZATION AND MANAGEMENT TEXTBOOK NOTES CHAPTER #1 CHAPTER STARTS OFF BY DISCUSSING HOW TRADE TOOK PLACE BACK IN 1840S • Factor – a seller (in this case a merchant selling agriculture) • Agent – a buyer (in this case a buyer in a foreign city that the factor has to manually locate) • Broker – someone who helps the two find one another • Transactions were informal, infrequent, inefficient • Price risk – the risk that the price that buyer and seller expected at the beginning is not the price which was received during transaction LIFE WITHOUT MODERN INFRASTRUCTURE: • Infrastructure – includes those assets that assist in production and distribution of goods and services that the firm itself cannot easily provide. Infrastructure includes facilities like transportation, communication, financing, R&D and government (who regulates or supplies infrastructure in the form of public goods) • Public goods – exists where individual firms are unable to capture more than a fraction of the benefits and are therefore reluctant to bear the costs 1840s INFRASTRUCTURE OF 1840S • Transportation o Mostly steam powered transportation (think big like titanic) and horse powered o Inefficient because: Lack of “connecting” water routes between many cities • They had to manually create the Erie Canal in 1852 o Government started making railroad but it wouldn’t be famous until 1870s • Communication o Public mail with horse power • Financing (banking system) ...
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...Burger Bots: Burger Making Machines That Will Revolutionize the Fast Food Industry Discussing the loss of human jobs to machines, Andrew McAfee, co-author of the book Race against the Machine, says “we ain’t seen nothing yet.” In the United States, the fast food industry has one of the highest employee turnover rates at 50 percent, costing the industry about $3.4 billion in recruiting and training. Many chains are already looking for ingenious ways to take humans out of the picture, threatening workers in an industry that employs 2.4 million wait staffers, nearly 3 million cooks and food preparers and many of the United States’ 3.3 million cashiers. Automation in the fast food industry has already started. In Europe, McDonald’s “hired” 7,000 touch-screen kiosks to handle cashiering duties, taking orders and handling payments. The use of touch screens at drive-thrus will also soon be available. While the full automation of fast-food cashiers isn’t here just yet, researchers and those in the business say it’s only a matter of time before ordering and payment become primarily self-service. In this essay I would like to discuss another type of automation, a technology which I believe will further revolutionize and potentially result in a significant number of jobs lost in the fast food industry, the burger making robot or burger bot. The burger bot doesn’t just flip the beef patties; it actually makes the burgers from start to finish. It may sound ludicrous at first, but...
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...Information Technology has been one of the fastest growing industries in the last three decades. With a growth rate of 5.6%, information technology sector is now more than a $1.6 trillion (Nasscom) industry from what was merely an industry of few millions in 1980s. Today almost all electronic devices have a chip programmed to run the device efficiently. Information technology does not just support the internet and computers; it has grown to almost every sector today, from computers to mobile phones, from banking to automobiles, from education systems to Business process, information technology is involved in improving the system performance everywhere. Information technology played an important role in improving process and performance of businesses. Globalisation had an important role in kicking off the demand for information technology. But this was not the only reason for high demand of software products and services, strong technological advances were being pursued in all sectors. Heeks and Nicholson (2004) identified that According to them the developed economies had significant growth in the sector since the 1970 after which the world saw rise of three countries, Israel, Ireland and India, who were then called the ‘first followers' in the industry and later came to be known as world leaders (Heeks and Nicholson, 2004). Outsourcing has been an important mode of business in information technology industry and most developed countries today outsource, from low level...
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...Indian Manufacturing Industry India’s manufacturing sector is on a high growth trajectory. As targeted by the National Manufacturing Competitiveness Council (NMCC), it is set to contribute 25% to the GDP by 2025 compared to the current share of nearly 16 %. Notably, the sector contributed 66% to the nation’s exports and has been strengthening at CAGR of 20% in the last five years. The competitiveness that the sector commands in the global arena is driving its growth. India ranks second in the world as per the 2010 Global Manufacturing Competitiveness Index (GMCI) prepared by the US Council on Competitiveness, and Deloitte. As per the same source, India would maintain its second ranked and continue to dominate the global manufacturing even after 5 years. India has set benchmarks in the international market with respect to quality in manufacturing. The country is currently second only to Japan in hosting companies awarded for quality excellence. The India advantage is favouring growth in the sector as international players such as Hyundai, Nokia, Samsung and Airbus are focussing on setting up manufacturing facilities in the country. Interestingly, India’s growth in the manufacturing sector overshadows other BRIC members. This can be associated to the strength in the Indian Domestic market. In a major boost to the 'Make in India' initiative, the Government has received confirmation from top technology firms such as GE, Bosch, Tejas and Panasonic regarding their decision to invest...
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...We can make it A consultation document Manufacturing 2020 Panel Contents Message from the Chairman....................................................................3 What are the Issues? ........................................................................................4 ISSUE 1: REDEFINING MANUFACTURING.............................................................4 ISSUE 2: THE IMPACT OF THE INTERNET .............................................................5 ISSUE 3 - PEOPLE ARE THE KEY TO THE FUTURE..............................................7 ISSUE 4 - MANUFACTURING TO A UNIT OF ONE..............................................8 ISSUE 5 - TECHNOLOGY AND INNOVATION AS THE KEY ENABLERS ..........9 What do I do now? .......................................................................................11 Panel and Task Force Members .........................................................12 What is Foresight....................................................................inside back cover www.foresight.gov.uk 1 What’s this all about? It is easy for people in business to downplay or ignore the importance of thinking strategically about the future. Day-to-day problems always seem to need immediate attention. Predictions about the future are invariably wrong. And, on the surface, the world we live in today doesn’t look or feel that different to what it was 10 years ago. So why should it change much over the next 10-20 years? But the fact is...
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...Historical Background Bangladesh Small and Cottage Industries Corporation (BSCIC) is a public sector enterprise with autonomous character entrusted with entire task of promotion and development of small and cottage industries in Bangladesh. It is the successor organization to the former East Pakistan Small industries Corporation (EPSIC) which was established by an Act of the parliament in 1957. Main role has been to assist the promotion of small manufacturing enterprises by- (a) developing infra-structural facilities for industry, (b) providing technical assistance and counseling services, (c) financing industries in the private sector and (d) setting up industries for which private investors were reluctant. Under the direct or indirect initiative of BSCIC a plenty of entrepreneurs has been created and enterprises has been set up in the country. But the influence of globalization and the free economy impacts upon the traditional manufacturing enterprises. This situation for marketing of small and cottage industries products is a major constraints facing by the sector. BSCIC is to provide facilities to the existing and new entrepreneurs to expand and develop their markets and to stay and sustain in the competitive environment. The definition of small-scale industry has undergone a considerable change in Bangladesh from time to time under government industrial policies. During the period 1957-65, small scale industry in Bangladesh (the then East Pakistan) stood for an...
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