Just-In-Time in an Automobile Industry What Significant

Just-in-Time in an Automobile Industry

What significant challenges barriers face automobile industry company implements Just-in-Time

Implementing Just-in-time in an automobile industry

Just-in-time is a collection of organization practices that aim to meet the customer quality satisfaction by innovatively reducing waste, continuously improve products and reduce cost of inventory. The result of Just-in-time production is to achieve excellence in manufacturing (Jack E.M. And Jessica O.M., 2007). Just-in-time (JIT) is a system of management originating from the Japanese Auto industry that follows from increases in the changes of customer specification and the need to reduce wastes through obsolete inventory following technological advancements.

Barriers in Implementing Just-in-time

Implementing just-in-time in an automobile company is a challenge when it comes to sourcing of parts that require shipment from suppliers outside the region of the automobile supplier. The need for zero inventories poses as a challenge in the automobile industry to the extent that, shipment will not meet truckload requirements since parts are for a specified production. The need to purchase material as required need suppliers to accommodate the firm needs (Victor H.Y. And Alice Y., 2006). The operations with the firm will require changes and orientations cohesively involving the management, investors and employees for success. A discussion on these barriers follows.

Low product quality

Just-in-time production system aim to improve the products quality and, setting in a new level of efficiency to improving on the quality (Jack E.M. And Jessica O.M., 2007). This is however, elusive owing to difficulties in consistently sourcing higher quality materials. This is the case for automobile industry parts and technology from suppliers. Suppliers of parts and technology in the Automobile industry are not necessarily striving to align their production system to that of the automobile industry.

In some cases, the improper flow of information on market trends obscures their timely responses to changes in demand. Automobile firms are time bound to respond to market needs with little time to scroll through the market for suppliers with higher quality advanced technology parts. This essentially limits the flow in production and may eventually lead to stoppage in production (Victor H.Y. And Alice Y., 2006). The Just-in-time production system is only possible is the implementation will not face the challenge of inconsistent quality supplies.

Poor communication

For the smooth functioning of systems in Just-in-time, communication is essential. Gaps in communication both within the firm and the market are a hindrance to successful implementation of Just-in-time system. If integrative and co-operative efforts from industry, market and the firm itself are dysfunctional, Just-in-time implementations will present a difficulty of coordination and responses. Lack of communication with the engineering departments will imply that the sought for product improvement as reflected in the market will be left out (Victor H.Y. And Alice Y., 2006).

The key areas where communication plays a pivotal role include; material requisitions, transportation, production control, supply feed outs, and managerial aspects. Communications with these areas will facilitate the implementation of Just-in-time by ensuring that nothing is left out. Coordination and response mechanism will also be made easy lessening the potential of inhibiting implementation of Just-in-time system. Considering the automobile industry, communication plays a bigger role in letting the suppliers and the automobile manufacturers know the demand changes and communicating to the manufacturers' technological needs for meeting their clients' preferences.

Lack of support from carrier companies

Efficient implementation of Just-in-time system requires a firm to undertake purchase of parts specifically for production and not inventory. Owing to the requirement of truck load efficient transport system, there is a need for corporation between carrier companies to make easy shipments. The failure of carrier companies to appreciate the need for Just-in-time will lessen the efficiencies in implementing the system. Carrier companies' failure to appreciate the need for the company to make shipment in small quantities deals a harder blow on the implementation of Just-in-time system.

Employee readiness

Change in an organization is inevitable and in most cases desirable. It is noted by (Singh S. And Garg D., 2011) that in most cases change is met with resistance especially so when it is not fully understood or threaten the existing status. Employees in the automobile industry are the proponent parts for successful implementation of the Just-in-time and their participation and embrace of the system needs to be cohesive from all angles. The employee resistance will set in to bring in gluts in communication slow response mechanisms and undue delays in work performance owing to low motivation. This will hamper the implementation of Just-in-time system and eventually bring the manufacturing process to a halt.

Support from suppliers

Suppliers of automobile parts failure to support the implementation just-in-time system will mean that the industry's backbone is not part of the process. As argued by (Jack E.M. And Jessica O.M., 2007) suppliers in the automobile industry need to work hand in hand with the automobile firms to participate in delivery of market efficient and quality parts reflective of the technological advancements and the needs of the market.

The inadequacy in implementing Just-in-time will set in where the efficiency goals, high quality and low costs standards remain elusive. The supplier's failure to support the manufactures will lead to high costs of implementing the system. Potential logistic difficulties to steer procurement in Just-in-time include; lack of an all inclusive delivery network system that does not incorporate overall dealer networks and support their participation.

Changes in Demands

The manufacturers who wish to implement just-in-time production system are susceptible to supply shock that may arise in the market. The Auto market has in the recent past realized dynamic changes with the demand increasing not only in numbers but also in tastes. The deployment of just-in-time production sets in to resolve the changes in taste. This is subject to the ability of the firm to obtain information on customer preferences and incorporate the preferences. The ability of the firm to incorporate the changes in preference may be hampered by their market knowledge and the flow of information thereby, inhibiting the success of the just-in-time system. Just-in-time requires zero inventories and, this stands as a challenge where the demand for Auto motive increases to outstrip the supply. Automobile firms will face the challenge of increasing supply where the information system have a glut or where increases in demand are not easily predicted.