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Business & Marketing
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English (U.S.)
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Research and Descirbe Just-in-time Production Strategy (Essay Sample)
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Just-in-time Production Strategy
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Just-in-time Production Strategy
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Just-in-time Production Strategy
In the dawn of modern economic and industrial revolution, companies and organizations managements are strategizing and designing business processes that will reduce operational costs and increase quality in production at the same time. The need to increase effectiveness in inventory management systems, increase staff involvement and effectual production of high quality products at significantly low production and operational cost has prompted organizations to adapt the Just –in-time (JIT) industrial operational mechanism. JIT refers to a set of operation and production concepts and theories that focuses on low production cost, meeting consumer demands and quality, as well as incur zero production waste.
Toyota recorded enormous advantages in the implementation of JIT. According to, implementation of JIT in the car manufacturing and assembling company leads to increased efficiency and effectiveness in production and management operations. Implementation of JIT strategies in Toyota increased organizational, interdepartmental, as well as inter-organizational communication and interaction. Integrated and efficient communication protocols between vendors and product distributors improved Toyota production operations.
JIT production strategies significantly reduced Toyota n production cost through cutting down the cost of purchasing production materials and other operation expenses. Just in time delivery strategy promoted cooperation and collaboration of organizational departments, hence increased managerial and employee commitment and involvement in company operational strategies. The implementation of JIT harnessed time and resources in production by minimizing the amount of work and time in processing inventories, raw material and finished goods. I regard of these JIT strategic factors, Toyota Company gained momentum and acquired a large market share all attributed to the efficiency, low production cost, innovation and production of quality products (Forrester & Bamford 2010 p.115).
The implementation of JIT philosophy experienced diverse setbacks and limitations. For instance, Toyota Company suffered massive production delays due to inconsistency in the supply and delivery of raw materials due to unpredicted traffic issues. The implementation of JIT mechanism is vulnerable and susceptible to disruption and alteration in production n by catastrophes such as earthquakes and storms. For instances, the Hashim earthquakes significantly altered production in Toyota company due to affected deliveries to the facility. According to Widener, Kennedy & Fullerton (2014), Successful implementation of JIT requires and involves massive consumption if time and resources in training employees as well as in the advancement of production processes and systems.
Lean thinking in a production company entails focusing of on the valued addition of production and service delivery process hence meet customer satisfaction. Toyota Production Company in Japan applied lean thinking methodology in its operation and implementation of JIT. According to Rich & Piercy (2015) methodology of lean thinking focused in the minimization of production cost by manipulating factors such as human resource and efforts, facilities and material cost, capita investment as well as enhancement of JIT in manufacturing, production, delivery and customer relations.
The integration of lean thinking in production, demand and supply chain lies within the context of lowering production cost, improving quality in production and aiming at customer preferences and satisfaction. The goals and objectives of lean thinking in production operations can be achieved through facilitation of factors and principles such as:
- focusing on elimination of waste and maximizing on innovation, perfection and quality production.
- The Adoption and Implementation of JIT operation strategies in meeting organizational supply chain goals and objectives. This enhances production of goods and services in line with customers preferences and perceptions as well as facilitate on time delivery of services (Johnston & Radnor 2013,p. 910)
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