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The Ultimate Goal Of JIT

JIT is a Japanese theory. Also known as the Toyota development system, it is aimed at producing the necessary parts in amounts needed, at the time these are required. The ultimate goal of JIT is to eliminate inventory, to acquire nominal work in process inventory checked by decrease in working capital.

JIT considers 7 types of wastes.

Overproduction

producing more than the client needs

Transportation

Anywhere where goods are migrated within the process

Waiting

where hanging around time occurs, usually where one process waits for another to complete before it can start.

Inventory

typified by stock or materials that are not being found in the process or current activity.

Motion

Poor planning and organizational design often cause action waste

Over processing

where steps arise in the production process that not add value to the end customer this is termed overproduction

Defects

The process results within an mistake or requires rework

JIT divides all works into value adding and non-value adding activities and then minimizes all non value adding activities. Kanban is one means by which JIT is achieved. It is a scheduling system that lets you know what things to produce, when to produce it, and exactly how much to produce

Poka-yoke is a Japanese term which means "fail-safing" or "mistake-proofing". Its purpose is to get rid of product flaws by preventing, correcting, or drawing attention to human mistakes as they appear.

Autonomation describes an attribute of machine design to influence the theory of jidoka. At Toyota this results in that if an irregular situation arises the device halts and the worker will stop the production series.

Kaizen refers to the philosophy or routines that focus upon constant improvement of procedures in manufacturing, anatomist, supporting business operations, and management.

Literature review

Weiters (1984) in another of the first literatures on this topic state governments that

"Financial justification of JIT in service industries is less likely however in service companies JIT offers intangible benefits in terms of improved service quality and customer satisfaction. "(cited by Inman and Mehra 1990)

Benson (1986) was the first ever to point out

"Service operations are organised systems of creation functions with the same potential of improvement through implementation of JIT precepts as manufacturing businesses" Cited by Duclos et. al. 1995

Berling and Geppi (1989) examined the supply string of healthcare sector and offered JIT as a procedure for hospitals in order to lessen inventory. They recommended closer human relationships between nursing homes and vendors.

Billesbach and Schniederjans (1989) present a research study on JIT software in an administration setting. The situation was on a big firm and JIT program was executed in the head office of this firm. Their procedure was predicated on examining activities and the ones not contributing to result to be eliminated.

Inman and Mehra (1990) experienced done FedEx. This deal delivery company implements JIT to reduce their inventory of quasi-MRO goods (mainly product packaging, labelling equipment). targeted at improving their service quality and competitiveness through execution of JIT and expected that inventories would be reduced because of this.

Lee (1990) reveals a case study of a small bank. Study is targeted on this banks loan authorization process. Bank comes after a two stage process and first evaluates the applications and makes your choice of lending in second phase. This process usually takes 12 days. Making use of JIT approach complete process is redesigned and many responsibilities are unified. New acceptance process needs 4-5 times.

Wasco et. al. ( 1991) presents an instance Kodak's quality confidence division. This department provides services to worldwide chain of Kodak. An MRP II system is put in place with JIT procedure and finish of the study is JIT techniques improve the probable of MRP software.

One of the most radical circumstance studies is presented by Barlow (2002). He investigates the applicability of JIT techniques to hotel industry. Weakness of the study could it be concentrates on liquor stocks of the hotels and attracts conclusions on if statements and these hotels do not adopt any JIT techniques.

Ruiz (2003 pp. 1) JIT focuses on the procedure, not product. Therefore it can be employed (in theory) to any group of processes, whether developing or service. Ultimate goal of JIT is to make a good and a service without waste

Literature on the matter quite confidently says that JIT can be employed in services and through reported circumstance studies research is provided. JIT applications in service industries are obscure in a few sense. You will find no empirical studies and reported circumstance usually resembles manufacturing setting.

Service businesses management - evolution

How to use JIT in services?

A school of thought of manufacturing excellence based on quest for the planned reduction of all throw away and steady improvement of efficiency. It includes the successful execution of most manufacturing activities required to produce a last product from design engineering to delivery and including all phases from alteration of raw material onward (APICS, 1992).

Total presence - of equipment, people, materials and processes;

Synchronization and balance - of creation to sales and offer to development;

Respect for individuals - Line operators is in charge of production, problem resolving and improvement;

Flexibility - adapt production to customer needs;

Continuous improvement - never satisfied with the process;

Responsibility for the operation's environment - those who design, manage and operate the operations are accountable for the outcome;

Holistic methodology - companywide viewpoint of reduction of waste products;

Each of the JIT designs may be appropriate to service organizations;

Synchronization and balance of information and work flow

matching output with customer demand - one of the important aspects of service businesses often cannot inventory the productivity of their operations making balance even more vital

Semantodontics, a primary marketing company reselling nationwide by catalogue to dentists, also found JIT a proper approach for lowering enough time to process paperwork (Conant, 1988) and, hence, the time necessary for a dentist to get an order. The idea of making whole lot sizes as small as possible was carried out by lowering the batch size in which telephone purchases were aggregated. Because of this, telephone purchases were moved to the second stage of the process 3 x daily alternatively than once a day, as was the prior norm. Set-up time for coming into new customer documents was reduced by moving the process to the original telephone operation where in fact the data were first collected. The decrease in order batch size had a behavioural impact on employees as well.

From the sense of satisfaction gained on completion of multiple small batches, employees tended to work faster and better.

Atlantic Envelope Company uses kanban trays at its Atlanta facility to go documents within the order entry department. Order admittance time fell to under a day from a prior uncertain number of days.

Total visibility of most the different parts of the process

Northern Telecom Inc. 's (NTI) CUSTOMER SUPPORT Centre borders the traditional processing environment (Savage-Moore, 1988) and the execution is a good exemplory case of providing visibility through the use of work cells. This device of NTI has the labour-intensive responsibility of repairing printed circuit packages (PCPs). For a person PCP, it is difficult to predefine the precise repair process required, not unlike a job shop environment. The work cell notion was applied to keep all focus on a PCP performed within a single cell and by one team of employees. This provided all employees restoring a PCP with presence regarding the repair needs and procedures used to correct the product. Additionally, employees were cross-trained to staff the cells and jobs were redefined to recognize employee training efforts. Over the two-year period, NTI saw customer support levels increase from 85 per cent to 100 % and quality levels significantly improved upon. Work-in-progress inventory was reduced by 75 per cent and repair circuit times reduced from one week to less than 48 hours.

Continuous improvement of the process

The Production Quality Assurance Company at Kodak in Rochester, New York provides specific services by means of sample testing of photographic film, chemical substance and environmental tests, equipment development and calibration control. JIT precepts were presented to provide a framework for regarding the entire company in constant improvement (Wasco et al. , 1991).

Fifty JIT skin cells were established to start the JIT delivery of products based on efficient precepts. JIT activities were used to lessen work-handling steps and run times. Improvements through JIT techniques preserved an average of $33, 000 monthly in 1990.

Holistic method of removal of waste

suppliers

Few suppliers;

Nearby suppliers;

Repeat business with same suppliers;

Active use of evaluation to enable desired suppliers to become/stay price-competitive;

Clusters of remote suppliers, competitive bidding mainly limited by new part figures;

Buyer vegetable resists vertical integration and subsequent wipe-out of company business;

Suppliers are encouraged to increase JIT buying with their suppliers;

Quantities:

Steady outcome rate (a desirable prerequisite);

Frequent delivery in small volumes;

Long-term contract agreements;

Minimal release paperwork;

Delivery quantities variable from release release a, but set for whole contract term;

Little or no permissible overage or underage of receipts;

Suppliers prompted to package in exact amounts;

Suppliers encouraged reducing their production great deal sizes (or store unreleased material);

Quality:

Minimal product specifications imposed on dealer;

Help suppliers to meet quality requirements;

Close human relationships between potential buyers' and suppliers' quality assurance people;

Suppliers encouraged to use process control graphs instead of great deal sampling inspection;

shipping:

Scheduling of inbound freight;

Gain control by use of company-owned or contract shipping, agreement warehousing, and trailers for freight loan consolidation/storage where possible - rather than using common providers.

Flexibility in the use of resources

Bookbinder and Locke (1986) present a model to ascertain if JIT circulation strategy is a possible option to traditional syndication methods. They investigated the behaviour of two different syndication models for JIT organizations. Inside the first, a factory-warehouse-retailer syndication system, the warehouse holds stock. In the next, stock movements from factory directly to retailers.

The models were likened using statistical lab tests, and the next model was identified to be the superior syndication system because it furnished basically the same service level to stores while having one less echelon of stock.

Another numerical model is made available from Ramasesh (1990) for the implementation of JIT techniques in purchasing systems that contain not yet advanced to the best degree of JIT purchasing (whole lot size of one).

He cured the fixed costs from the adoption of JIT as investment, and justified it predicated on the savings produced using any of the techniques of investment analysis. He modified 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 volume and the perfect amount of shipments.

Case studies

DHL- impact of JIT

The founders began to personally send papers by flight from San Francisco to Honolulu, start traditions clearance of the ship's cargo prior to the actual entrance of the ship and dramatically minimizing waiting time in the harbour. With this idea, a new industry was born: international air express, the quick delivery of documents and shipments by aircraft. DHL network extended to develop at an incredible pace. The business extended westward from Hawaii in to the ASIA and Pacific Rim, then the Midsection East, Africa and European countries. By 1988, DHL had been present in 170 countries and possessed 16, 000 employees.

The different business units of the business are

DHL Express

DHL Freight

DHL Global Forwarding

DHL Exel Supply

DHL Global Mail

The process above mentioned was increased using JIT with pursuing ways

Inventory Management Concerning Services

For instance, in the case of DHL, vehicles, bicycles and other resources that help service delivery must be accounted for, serviced, ready and available to be utilized for work goal.

Quality Management Concerning Services

Tangibles

Reliability

Responsiveness

Competence

Courtesy

Access

Supplier Relationships Concerning Services

Human Reference Management Concerning Services

JIT in retail

The key key points of JIT in virtually any system are:

No wastage,

Total awareness, and

Flexibility in the use of human being and materials resources

In any environment these key points translate into three simple guidelines:

don't start any work unless the demand transmission indicates a need for more materials;

if the demand signal indicates a need, work to fill that require;

and, never surpass the queue-size limit

Automatic Replenishment Systems (ARS) is also a good example of program of JIT in retail.

JIT in Indian service industry

A study was done on the Indian service industry. The data was collected from the preferred service companies and examined. The results of amount of importance are given in the table

The most important element identified by the Service companies was waste lowering (mean=0. 8929). The least important component was JIDOKA (mean=0. 5625).

The elements of the study are stated in appendix table 1

JIT in hospitals

Most research in the health good care industry has been aimed toward process and information system advancements.

Generally, service conditions such as healthcare are likely prospects for JIT if their businesses are repeated, have fairly high amount, and deal with tangible items such as mail, checks, bills or characters.

In hospitals, there is a vital department called CSSD (Centre for Sterilization Service division), the functions of which include materials management, devices reception, washing, packing and sterilization, sterile store, musical instruments distribution

As an illustration a earlier company model can be analysed

And compared with an improved model, which centralises and streamlines the source chain

JIT in administrative setting

JIT routines and their influence on quality can be analysed

Human components of JIT

Steps in implementation of JIT in service industry

Eliminate disruptions in work of the employees and make the service system flexible and train the workers to take care of more variety. reduce set-up time and eliminate throw away including errors and duplicate work and minimise work-in process e. g. Plans longing to be sent, calls waiting to be responded, pending orders to be processed, trucks ready to be filled/unloaded

Generally, service environment may benefit from jit system if the functions are repetitive, have high quantity, and offer with tangible items e. g. Sandwiches, email or charges services must involve processing like operation

Consistently high quality

service employees can be taught the worthiness of providing defect free services

uniform facility loading

reservation systems and differential pricing are ways to level the strain on the facilities

standardised work methods

high efficiencies achieved by analysing work methods and standardising

Close dealer ties

volume services such as fast-food joint parts and mass merchandisers require close provider contacts to ensure regular short lead time and high quality delivery of supplies

Flexible work force

greater the customisation in the service, higher is the need for a multi-skilled labor force e. g. Electronic repair shops needing wider experienced workforce to diagnose the issues and repair the defects

Line stream strategy

mangers can recognise their workers and equipment to provide standard flows through the machine, and eliminate squandered staff time e. g. Lenders use this system in their cheque processing operations

Process improvement and problem solving can donate to streamlining a system, leading to increased customer satisfaction, and - higher production - e. g. Self service system including retail businesses, ATM, vending machines, service stations etc which is the capability to provide services when required

simplify the process, particularly when customers are part of the system jit services, if achieved, can be a major competitive gain for companies

A Framework

Appendix

Table 1:

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