The Ultimate Goal Of JIT

The Ultimate Goal Of JITJIT is a Japanese concept. likewise called the Toyota reapingion system, it aims at producing the necessary mappings in quantities needed, at the clock they argon required. The ultimate goal of JIT is to bear off inventory, to have minimal lean in abut inventory monitored by reducing in self-colored exertions capital.JIT considers 7 types of baselesss.Over turnoutproducing more than than the customer needsTransportation allwhere where goods argon moved within a exploitWaitingwhere hold conviction occurs, traditionally where angiotensin converting enzyme process waits for a nonher to finish forwards it ignore start.Inventorytypified by carry or substantials that atomic number 18 not being using upd in the process or current activity.move Poor planning and organizational layout often ca intention motion botchOver bear onwhere steps occur in the production process that do not add value to the end customer this is termed overproductionD efectsThe process results in an error or requires re moveJIT divides all shits into value adding and non-value adding activities and then eliminates all non value adding activities. Kanban is one means by means of which JIT is achieved. It is a scheduling system that tells you what to produce, when to produce it, and how much to producePoka-yoke is a Japanese term that means fail-safing or mistake-proofing. Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur.Autonomation describes a feature of machine design to affect the principle of jidoka. At Toyota this ordinarily means that if an abnormal situation arises the machine stops and the usageer put up stop the production line.Kaizen refers to the philosophy or practices that focus upon continuous advantage of processes in manufacturing, engineering, supporting business processes, and management.Literature reviewWeiters (1984) in one of the number 1 literatu res on this topic states thatFinancial justification of JIT in armed proceeds industries is less likely but in returns industries JIT offers intangible benefits in terms of better attend to quality and customer satisfaction.(cited by Inman and Mehra 1990)Benson (1986) was the first to point outService operations are organised systems of production processes with the uniform potential of improvement through with(predicate) carrying out of JIT precepts as manufacturing operations Cited by Duclos et. al. 1995Berling and Geppi (1989) studied the supply chain of healthcare sector and offered JIT as an approach to hospitals in consecrate to inhibit inventory. They suggested closer relationships between hospitals and distributors.Billesbach and Schniederjans (1989) take a case field of study on JIT industriousness in an authorities setting. The case was on a big corporation and JIT programme was employ in the headquarters of this corporation. Their approach was base on exam ining activities and the ones not lend to result to be eliminated.Inman and Mehra (1990) had chokeed on FedEx. This package delivery company implements JIT to reduce their inventory of quasi-MRO goods (mainly packaging, labelling supplies).aimed at improving their service quality and war-riddenness through implementation of JIT and anticipated that inventories would be reduced as a result.leeward (1990) presents a case study of a small bank. Study is rivet on this banks loan approval process. Bank follows a two direct process and first evaluates the applications and makes the decision of lending in second phase. This process usually takes 12 days. Applying JIT approach whole process is redesigned and several tasks are unified. New approval process takes 4-5 days.Wasco et. al.( 1991) presents a case Kodaks quality authorisation division. This division provides service to worldwide chain of Kodak. An MRP II system is employ with JIT approach and conclusion of the study is JIT t echniques enhance the potential of MRP application.One of the around radical case studies is presented by Barlow (2002). He investigates the applic mightiness of JIT techniques to hotel industry. Weakness of this study is it concentrates on liquor stocks of these hotels and draws conclusions on if statements and these hotels echtly do not scoop any JIT techniques.Ruiz (2003 pp.1) JIT focuses on the process, not product. Therefore it can be utilise (in theory) to any group of processes, whether manufacturing or service. Ultimate goal of JIT is to produce a good and a service without useLiterature on the subject quite confidently states that JIT can be applied in services and through reported case studies evidence is provided. JIT applications in service industries are vague in some sense. There are no existential studies and reported case usually resembles manufacturing setting.Service operations management exploitationHow to implement JIT in services?A philosophy of manufac turing exelectric cellence base on pursuit of the planned elimination of all waste and un differentiated improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product from design engineering to delivery and including all stages from renewal of raw material onward (APICS, 1992).Total visibility of equipment, bulk, material and processes synchrony and balance of production to sales and supply to productionRespect for people Line operators is responsible for production, problem solving and improvementFlexibility conform production to customer needs unvarying improvement never conform to with the processResponsibility for the operations environs those who design, manage and operate the processes are responsible for the outcomeHolistic approach companywide philosophy of elimination of wasteEach of these JIT themes may be applicable to service organizationsSynchronization and balance of information a nd work consortmatching production with customer collect one of the important aspects of service operations often cannot inventory the output of their processes making balance even more vitalSemantodontics, a curb marketing company selling nationwide by catalogue to dentists, also found JIT an appropriate approach for reducing the time to process paperwork (Conant, 1988) and, hence, the time required for a dentist to receive an order. The idea of making stool sizes as small as possible was implemented by decrease the batch size in which rally orders were aggregated. As a result, telephone orders were moved to the second stage of the process three times perfunctory rather than once a day, as was the anterior norm. Set-up time for introduction new customer records was reduced by moving the process to the sure telephone operation where the data were first gathered. The decrease in order batch size had a behavioural impact on employees as well.From the sense of satisfaction g ained on completion of multiple small batches, employees tended to work faster and more efficiently.Atlantic Envelope Company uses kanban trays at its capital of Georgia easiness to move documents within the order innovation subdivision. Order entry time fell to under a day from a previous uncertain number of days.Total visibility of all components of the process blue Telecom Inc.s (NTI) Customer Service Centre borders the traditional manufacturing environment (Savage-Moore, 1988) and the implementation is a good example of providing visibility through the use of work cells. This unit of NTI has the labour-intensive responsibility of repairing printed circuit packs (PCPs). For an individual PCP, it is difficult to predefine the detail repair process required, not unlike a job surf environment. The work cell concept was applied to keep all work on a PCP performed within a single cell and by one team of employees. This provided all employees repairing a PCP with visibility as to the repair needs and processes used to repair the product. Additionally, employees were cross-trained to staff the cells and jobs were redefined to screw employee training efforts. Over a two-year period, NTI saw customer service levels increase from 85 per cent to 100 per cent and quality levels significantly improved. Work-in-progress inventory was reduced by 75 per cent and repair regular recurrence times reduced from one week to less than 48 hours.Continuous improvement of the processThe Manufacturing property Assurance Organization at Kodak in Rochester, New York provides specialized services in the form of sample examen of photographic film, chemical and environmental testing, equipment development and calibration control. JIT precepts were introduced to provide a framework for involving the entire organization in continuous improvement (Wasco et al., 1991). lambert JIT cells were established to start the JIT delivery of products or services based on functional precepts. JIT activities were used to reduce work-handling steps and run times. Improvements through JIT techniques relieve an average of $33,000 per month in 1990.Holistic approach to elimination of wastesuppliersFew suppliersNearby suppliersRepeat business with same suppliersActive use of analysis to enable sought after suppliers to become/stay price- competitiveClusters of remote suppliers, competitive bidding to the high-pitchedest degreely limited to new part numbersbuyer plant resists vertical integration and subsequent wipe-out of supplier businessproviders are advance to extend JIT buying to their suppliersQuantitiesSteady output rate (a desirable prerequisite)Frequent delivery in small quantitiesLong-term contract agreements stripped-down release paperworkDelivery quantities variable from release to release, but fixed for whole contract termLittle or no permissible outdated or underage of receiptsSuppliers encouraged to package in tiny quantitiesSuppliers encouraged reducing their production lot sizes (or store unreleased material)QualityMinimal product specifications imposed on supplierHelp suppliers to tack together quality requirementsClose relationships between buyers and suppliers quality assurance peopleSuppliers encouraged to use process control charts instead of lot sampling reviewshippingScheduling of inbound freightGain control by use of company-owned or contract shipping, contract warehousing, and trailers for freight consolidation/ retention where possible instead of using common carriers.Flexibility in the use of resourcesBookbinder and Locke (1986) present a model to determine if JIT distribution methodology is a feasible alternative to traditional distribution methods. They investigated the behaviour of two different distribution models for JIT organizations. In the first, a factory-warehouse-retailer distribution system, the warehouse holds stock. In the second, stock moves from factory directly to retailers.The models were compared u sing statistical tests, and the second model was heady to be the superior distribution system because it furnished essentially the same service level to retailers while carrying one less echelon of stock.Another numeral model is offered by Ramasesh (1990) for the implementation of JIT techniques in purchasing systems that have not yet advanced to the ultimate level of JIT purchasing (lot size of one).He treated the fixed costs associated with the adoption of JIT as investment, and justified it based on the savings generated using any of the techniques of investment analysis. He modify the traditional economic order quantity model to include explicitly the costs of small-lot shipments. He also provided guidelines and formulae for determining the order quantity and the best number of shipments.Case studiesDHL- impact of JITThe founders began to personally ship papers by airline from San Francisco to Honolulu, beginning customs clearance of the ships cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbour. With this concept, a new industry was born international air express, the speedy delivery of documents and shipments by airplane. DHL network continued to grow at an undreamed pace. The company expanded westward from Hawaii into the Far East and peaceful Rim, then the Middle East, Africa and Europe. By 1988, DHL was already present in one hundred seventy countries and had 16,000 employees.The different business units of the company areDHL ExpressDHL FreightDHL planetary ForwardingDHL Exel SupplyDHL Global MailThe process above mentioned was improved using JIT with following waysInventory charge Concerning ServicesFor instance, in the case of DHL, vehicles, bicycles and other assets that facilitate service delivery must be accounted for, serviced, ready and available to be used for work purpose.Quality Management Concerning ServicesTangiblesReliabilityResponsivenessCompetenceCourtesyAccessSupplier Relations Concer ning ServicesHuman Resource Management Concerning ServicesJIT in retailThe key principles of JIT in any system areNo wastage,Total visibility, andFlexibility in the use of human and material resourcesIn any environment these principles translate into three simple rulesdont start any work unless the demand signal indicates a need for more materialif the demand signal indicates a need, work to fill that needand, never exceed the queue-size limitAutomatic Replenishment Systems (ARS) is also an example of application of JIT in retail.JIT in Indian service industryA fall over was done on the Indian service industry. The data was collected from the selected service industries and analyzed. The results of degree of importance are given in the tableThe most important element recognized by the Service industries was waste reduction (mean=0.8929). The least important element was JIDOKA (mean=0.5625).The elements of the study are mentioned in accessory table 1JIT in hospitalsMost research in the health care industry has been directed toward process and information system improvements.Generally, service environments such as health care are likely candidates for JIT if their operations are repetitive, have reasonably high volume, and deal with tangible items such as mail, checks, bills or letters.In hospitals, there is a vital department named CSSD (Centre for Sterilization Service department), the functions of which include materials management, instruments reception, washing, packing and sterilization, sterile store, instruments distributionAs an illustration a previous supplier model can be analysedAnd compared with an improved model, which centralises and streamlines the supply chainJIT in administrative settingJIT practices and their result-out on quality can be analysedHuman elements of JITSteps in implementation of JIT in service industryEliminate disruptions in work of the employees and make the service system flexible and train the workers to handle more vari ety. reduce set-up time and eliminate waste including errors and duplicate work and denigrate work-in process e.g. Packages waiting to be delivered, calls waiting to be answered, pending orders to be processed, trucks waiting to be loaded/unloadedGenerally, service environment may benefit from jit system if the operations are repetitive, have high volume, and deal with tangible items e.g. Sandwiches, mail or bills services must select manufacturing like operationConsistently high qualityservice employees can be taught the value of providing defect free servicesuniform facility loadingreservation systems and differential pricing are ways to level the load on the facilitiesstandardised work methodshigh efficiencies achieved by analysing work methods and standardisingClose supplier tiesvolume services such as fast-food joints and circle merchandisers require close supplier contacts to ensure frequent short lead time and high quality shipment of suppliesFlexible work forcegreater the customisation in the service, greater is the need for a multi-skilled workforce e.g. electronic repair shops needing wider experienced workforce to diagnose the problems and repair the defectsLine flow strategymangers can recognise their employees and equipment to provide uniform flows through the system, and eliminate wasted employee time e.g. Banks use this system in their cheque processing operationsProcess improvement and problem solving can fetch to streamlining a system, resulting in increased customer satisfaction, and higher productivity e.g. self service system including retail operations, ATM, vending machines, service stations etc which is the ability to provide services when requiredsimplify the process, especially when customers are part of the system jit services , if achieved , can be a major competitive advantage for companiesA FrameworkAppendixTable 1