Benefits and Challenges That Organizations Face in Implementing Just in Time System

Topics: Inventory, Management, Manufacturing Pages: 6 (1760 words) Published: July 26, 2011
SUBJECT NAME: Operations Management| SUBJECT CODE: BB209| LECTURER: Mr. Ho Min Yoong| DEADLINE : 20TH JULY 2011|
TOPIC: Just in TimeTITLE: Benefits and Challenges that Organizations face in implementing just in time system. STUDENT ID| STUDENT NAME| 1000820502| Sari Burhan Al Hasan |
I certified that this is my own work, completed in accordance with University and School’s regulations on plagiarism and fair practice.STUDENT’S SIGNATURE SUBMISSION DATE 20th July 2011|

Assignment on operation management
Topic: Just in Time
Title: Benefits and Challenges that Organizations face in implementing just in time system

Study objective
i. The objective of this study is concerned with identifying some of the benefit and challenges that an organisation may find in implementing just in time system. ii. To fulfil the requirement of this module, Introduction to operation management iii. To gain extra knowledge on operation management in logistics industries that will help me now and in the future. Scope

The first step concerns of explaining the benefits that the company get from implementing just in time systems, such as the reduction of inventory cost, save time and increases job satisfaction. Secondly try to examine on the other hand the challenges that a firm may face in the process of implementing just in time system in the company such as initial cost, and demand fluctuations. Introduction

Just in Time is a system or strategy that is used to improve business by reducing inventory and carrying costs of goods. In today’s competitive business environment, quality is not the only thing that matters for the customers, but high quality at minimum costs is what customer demands. Normally, for the company to decrease cost, the company needs to use just in time system. For example, Toyota Motors Corporation, annual sales over 9 million trucks and cars is the largest vehicle manufacturer in the world. Two techniques, just in time and the Toyota production system have been instrumental in this growth. Toyota with wide range of vehicles compete head to head with successful long established companies in Europe and in the US One of the primary objectives of just in time is to eliminate all manufacturing waste by getting the right quantity of row material to produce the right quantity without any extra or shortage, in this way the company might save cost and time and minimize any chance of manufacturing mistakes. Just-in-time is originally a Japanese concept that aims at minimizing inventory level of the company in order to cut cost of storing row materials or finished goods, such inventory can cause the revenue of the company to decrease. So just in time concept concerns about getting the inputs just when the company needs it. This saves the company from the expenses of maintaining the inventory level. Recently, the usage of just in time system has become widespread because of the advantages concerning production and manufacturing which helps companies to improve and cut cost at the same time. I. The benefits of implementing Just in Time

The main benefits of just in time manufacturing system are the followings: 1. Time savings
It has been said that in today’s business environment that time is money. So using efficient time can become a competitive strategy. Just in time system helps the firm to reduce the cycle time of manufacturing and administrative process. In using Just in Time, companies can respond faster to customers and reduce waiting customer time. So companies can become more flexible in dealing with marketplace changes. Just in Time has many objectives or aims to improve productivity such as time savings. Just in...
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