Tech Tectonics Current Manufacturing System Style Essay

Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.

a. After analyzing Pro-Forma Income Statement for all four quarter the utilization of Just-in-time strategy in Quarter 2-3 would have made Lean in Enterprises for more profitable. Since the premise of Just-in-time is to reduce waste and make sure that the supply chain is working efficiently to meet the customer demand. Just-in-time inventory is the minimum inventory necessary to keep a perfect system running. In Operation Management Heizer and Render define JIT inventory as the exact amount of the good arrives at the moment it is needed. (p. 2010) The ability to implement this strategy in Quarter 2 and Quarter 3 would have been very beneficial to the company expenses. The Just-In-Time strategy would have help the company avoid the $8,163 holding cost an excess capacity cost of $491,524. Just-in-time strategy would have prevented additional production after the product had low customer demand. Just-in-time would have also prevented the same waste

* Acquire and utilize a new enterprise software for integration using the Just In Time (JIT) vendor, to offset delays in regular inventory sourcing during migration events, while utilizing active intelligent agents to recognize significant inventory changes and place advance stock depletion or seasonal changes inventory.

Lastly, the just-in-time (JIT) approach is an operating philosophy that requires that all resources, including materials, personnel, and facilities, be acquired and used only as needed (Mazumder, 2007). The JIT approach works great for manufacturing companies because of their common classes of material that they use which are raw materials, work-in-process, and finished goods (Mazumber, 2007). According to JIT concept raw materials are received just in time to go into production, manufactured parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers (Mazumber, 2007). The

Just-in-time: Just-in-time is an approach of continuous and forced problem solving through a focus on throughput and reduced inventory. Nissan takes advantage of JIT through reduced inventory levels and relying on a supply chain to deliver the parts needed to build its cars. The major benefit to JIT is that production runs remain short and the costs are reduced through less waste in warehouse storage space requirements. The company also saves money on raw materials

The JIT approach to manufacturing involves timing the delivery of resources so that they arrive just when needed. Inventory optimization models help the firm determine how many of which items in which sizes should be delivered to each specific store during twice-weekly shipments, ensuring that each store is stocked with just what it needs. Trucks serve destinations that can be reached

As argued by Lubben (1988), JIT allows businesses to have better management since this ensures that there is no loss as there is sufficient number of clients requiring the equipment. This reduces her to deal with huge deliveries when the clients’ numbers are not increasing. (Lubben, 1988, p.4) also suggested the idea of JIT that “... major elements of manufacturing – capital, equipment and labour are made available only in the amount required and at the time required to do the job.” So it is a good practice by utilising JIT approach as it reduces wastes and ensure the correct amount of equipment is available (Lubben,

A third disadvantage of applying JIC manufacturing operations is having lower quality assurance methods and even further, lower customer satisfaction (“Just-in-case and just-in-time…”). While the just-in-case system is beneficial in

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

A synthesis of the two approaches, total quality management (TQM) and just-in-time (JIT), could improve the manufacturing competitiveness in many aspects. This section will discuss the effects of practices of one approach on the performance of the other approach respectively.

Maintain and assess suppliers’ performance and create relationships. Evaluate each supplier capacity and ability to perform as well as identifying and reducing the supply chain risks

The use of foreign suppliers has caused a lengthy lead time I the supply chain, however the company is working to improve this and has successfully achieved some good results. There effectors have reduced the average time from placing a component order with a supplier to having those items available at the New Balance warehouses from 12 weeks to 9 weeks.

Partnering with suppliers: The third approach to managing demand recognizes the information distortion caused by ordering goods in batches along a supply chain. Even though a customer may require daily usage of an item, customer probably does not purchase that item daily. Neither do retail stores restock their shelves continuously. By the time a replenishment order reaches distributors, wholesalers, manufacturers, and their suppliers, the demand pattern for a product can appear extremely erratic. To control the situation manufacturers, their suppliers, and customers form partnerships in which demand information is shared and orders are placed in a more continuous fashion.

JIT plays an integral role in streamlining the production process. It allows the manufacturing plants to avoid holding buffer stocks that contribute to increased inefficiency. Moreover, the approach reduces inventory costs because there are minimal units of goods stored in the warehouses. Overall, JIT helps to improve efficiency and the overall

Mr. Sherwood received an undergraduate degree from Arizona State University in Management, with a focus on Supply Chain Management. He also earned his MBA from the University of North Carolina at Greensboro. Over the past 12 years he has worked for Volvo, Boeing and Amazon as a buyer, and procurement and supply chain strategist. His responsibilities are to ensure that products are being received from suppliers in a timely manner and that the quality of the goods are within acceptable limits. One of the ways that he ensures that these objectives are met is to conduct periodic process evaluations with the suppliers he works with. When Mr. Sherwood does an evaluation he said he is typically looking to see that there is consistency in the way work is completed and quality of the merchandise produced (2016).