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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...
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…
References
JACK E.M. & JESSICA O.M. 2007. "Just-in-time implementation issues among automotive suppliers in the southern USA," Supply Chain Management: . International Journal,, 12 432-443.
SINGH S. & GARG D. 2011. JIT System: Concepts, Benefits and Motivation in Indian Industries. International Journal of Management & Business Studies, 1, 26-30.
VICTOR H.Y. & ALICE Y. 2006. Managing quality effectively in supply chain: A preliminary study.Supply Chain Management. An International Journal,, 11, 208-215.
The Liabilities of JIT Considering the fact that manufacturers are often engaged in a variety of business models at once, any CEO of one of these companies would need to contemplate what while JIT me be excellent for the make-to-stock productions strategies, it would potentially be problematic for its build-to-order and mass customization strategies as well (Song, Dinwoodie, 2008). The innate uncertainty of mass customization strategies makes JIT as a strategy
Some companies such as General Electric, Motorola and Dell have tied the Just-In-Time philosophy into other philosophies such as Six Sigma where near perfection is sought after in the manufacturing approach. Just-In-Time has been highly praised as the savior of the manufacturing process. But, there are limitations in the philosophy such as cultural differences. "The organizations cultures vary from firm to firm. There are some cultures that tie to Just-In-Time's
" When JIT was newly introduced all the deliveries were done by bicycles which were handled by humans, although with the rise in scale came the adoption of van and lorries for the deliveries. And this in turn has other problems which were highlighted by Cusumano (1994). Firstly the time which is wasted while the vans are stuck in traffic jams, this can result in late deliveries, the inventory which
Accounting The just-in-time inventory model has become popular in both retail and manufacturing situations in recent years, because it has many advantages that appeal to companies, and because technological innovation has made this system easier to implement. The just-in-time (JIT) system involves receiving goods only when they are needed, in order to avoid a buildup of inventory (Investopedia, 2014). The traditional inventory method was to have a buffer of inventory.
JIT Management Eli Whitney developed the interchangeable parts system when accepting a contract to manufacture muskets for the U.S. Army in 1799 (A Brief History of (Just-In) Time). Over the next 100 years, large scale processes held focus while manufacturers focused on individual technologies. The system of engineering drawing developed and modern tools were perfected during this time. In the late 1890s, Fredrick W. Taylor created "Scientific Management" by observing workers and
Many JIT factories contain fail-safe mechanisms such as providing all workers with a box in which to put the component parts of the items they are assembling -- if a part is left in the box, the worker knows that he or she has forgotten to include it. High standards of quality lessen the need to 'do things over' which can also slow down the production line. To ensure that