FACULTY OF WELL-BEING AND SOCIAL SCIENCES (BUSINESS)
Module Title: CONTEMPORARY MANAGEMENT ISSUES (BAM3011)
Assessment Title: Management models
Student Number: 1011331
Module Leader: Barry Simmons
Date of Submission: 27th April 2012
The two management models that will be critically evaluated on their usefulness to managers in the service sector are the Just-in-Time (JIT) and the Lean manufacturing models. These two manufacturing models were invented in the early 1960s which have been in used and practised in the manufacturing industries and at this present time in world economy, it is commonly take place in the East and South Asia (Wild, 2002) compared to North America and Western Europe where it is found with global-services economy. Drury (2008) gave the main idea behind these models in manufacturing industries or sector is to develop and get it better the efficient and effective production by way of increasing it production output or reducing the personnel required. Globally, Managers in many manufacturing companies like Toyota Motors and Dell Computers are recognized with business and quality improvement program or insight that there is a need for completely new approach in their production process. Manufacturers traditionally have anticipated demand in their products into the future. This has brought about the attempt to settle down production in order to meet that forecasted demand and at the same time need to keep people possibly busy in an attempt to maximise efficiency as well as reducing costs in producing output (Senge, Sterman 1992). Just-in-Time (JIT) as mainly useful in the manufacturing sector, is an improvement approach to production and inventory control system where raw material/ materials are bought and units are manufactured on need to meet actual customer demand. In this case, inventories in the manufacturing system are reduced to the minimum and sometimes to zero and a 100% prompt delivery (Slack, 2010). Usually, the three classes of inventories: raw materials, work in progress (WIP) and finished goods are basically maintained by manufacturing companies to act as buffers with the intention that operational activities can continue smoothly and efficiently even if there are unforeseen interruptions. During manufacturing, the company would have no goods still in process at the end of the day and the completed goods for the day would be shipped instantly to customers. Relatively in the early 1970s, JIT has been Japanese management philosophy which has been applied in practice in many Japanese manufacturing organisations. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays .Taiichi Ohno, one of management gurus, is frequently referred to as the father of JIT. Hernandez (1989) buttressed that Toyota was competent to meet the growing challenges for survival and existence through a tactic and technique that focused on plants, people and systems. They understood and realized JIT would be successful only if the plant and equipment and processes were organized arranged for maximum output and efficiency, if all members of staffs within the company were involved as well as dedicated to it and if quality and production programmes were planned to meet demands correctly. The idea behind this is to entirely do away with all forms of waste and anything which doesn’t add value to the product (Burnham, 1987). In the definitions of JIT from different scholars, it is frequently formed as describing JIT as a theory primarily applicable to manufacturing industry. But outside manufacturing, it provides new likelihood for adopting the methods usually related with JIT to service sector organisation as well as service functions in manufacturing (Wieters, 1984). However, the techniques and concepts of JIT sole initially developed in the manufacturing field...