Jit in Service Sector

Topics: Business process, Business process reengineering, Better Pages: 9 (2584 words) Published: August 23, 2013
IIM LUCNOW MANFEST 2004
OPERA

Paper
On
JIT IN SERVICE SECTOR

By
Deepti Mishra
MBA(IB) 2004-2006
Phone no. 09868015479
Email Id. Deepti_d06@iift.ac.in

Pooja Aggarwal
MBA (IB) 2004-2006
Phone no. 09810673298
Email Id Pooja_d06@iift.ac.in

INDIAN INSTITUTE OF FOREIGN TRADE
NEW DELHI
Executive summary

JIT is one of the quality management techniques widely employed in manufacturing sector. It aims at eliminating anything that is unwanted in the organisation, thereby increasing the efficiency of the operation. It is also employed in service sector.

This paper deals with the issue of implementation of JIT in service sector. This issue is covered by adopting an indirect approach. All the benefits which are obtained using JIT are listed and then their corresponding implementation in service sector is discussed. It is observed that all the utilities of JIT like Reducing cost, Improving Quality, Improving Performance, Improving Delivery, Adding Flexibility and Increasing Innovativeness are implemented in service industry. This helps us to understand that basic philosophy remains the same, only implementation methodology is changed.

What is JIT?

JIT is a philosophy of continuous improvement in which non-value-adding activities are identified and removed for the purposes of: • Reducing cost
• Improving Quality
• Improving Performance
• Improving Delivery
• Adding Flexibility
• Increasing Innovativeness

JIT is not about automation.  JIT eliminates waste by providing the environment to perfect and simplify the processes.  JIT is a collection of techniques used to improve operations. It can also be a new production system that is used to produce goods or services.

All the above utilities of Just in Time concept indicates that this concept is not sector specific concept. It can also be employed in service sector.

Service Sector
In order to define services, it is not enough to say simply that they are intangible acts as opposed to tangible goods. Most modern products are a combination of both. For example, when purchasing a washing machine the customer also receives services such as installation, maintenance and repair. When getting a haircut, the customer will likely also benefit from a number of hair care products and might even purchase some for home use. Therefore services can be characterized with the following important features: • Intangibility: services cannot generally be seen, tasted, felt, heard or smelled before they are bought. • Inseparability: services are produced and consumed at the same time. • Variability: the quality of the same service may vary depending on who provides it as well as when and how it is provided. • Perishability: services cannot be stored for later sales or use; lack of demand cannot be evened out by producing to an inventory. Several of the features enumerated above do not apply to modern information technology-based services. There, personal contact does not have any importance (e.g., on-line learning in its purest form, on-line banking, etc.) and variability is greatly reduced if not eliminated completely. Due to this heterogeneity in services it is difficult to classify them in a useful manner.

Implementation of JIT in Service Sector
The key principles of JIT in any system are: no wastage, total visibility, and flexibility in the use of human and material resources. In any environment these principles translate into three simple rules: don’t start any work unless the demand signal indicates a need for more material; if the demand signal indicates a need, work to fill that need; and, never exceed the queue–size limit . JIT is now fully integrated into service sector, although the use of the term JIT is rarely used. All the objectives aimed by employing JIT is achieved in service sector as seen below.

❖ Reducing Cost
In Service sector "return on investment" (ROI) has...
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