Just In Time
- part of studying Supply Chain Management.
| JIT
Just In Time - part of studying Supply Chain Management. |
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| INTRODUCTION | In this course
we will discuss three Japanese business concepts which have had some effect
on North American and European business. These concepts are not necessarily
original to Japan, but they have been nurtured there by Japanese cultural
considerations which are unique.
The concepts we will discuss are
In the 1980's and early 1990's, many large Japanese companies set up manufacturing operations in North America. As they acquired North American companies (like Bridgestone's takeover of Firestone, and SONY's takeover of Columbia Pictures) the Japanese corporate leadership spread their management style to their subsidiary companies and many non-Japanese learned basic Japanese terms for business practices. In Japan in the 1980's, space was a premium. Manufacturing processes had to deal with space restrictions for warehousing, assembling etc. One of the way companies saved money was to have their suppliers send the components just when it was time to use them - meaning you did not have to store supplies in advance, they's be delivered just in time to put them into the product you are assembling. WTGR |
| JIT
Just In Time |
Industry activities to deal with enhancing effectiveness of Supply Chain Management
information competitiveness What has changed in the millennium is the need to quickly share and disseminate information across the supply chain, - this follows a shift from product orientation, to sales orientation to market orientation. Pull versus Push Supply Chain
models
- Pull based models
require a lot of information about the customer
If Pull based models require a lot of information about the customer, then one of the corollaries about the spread of Pull Supply Chain Models is the requirement for better intelligence about customers. One of the consequences, for international business, is a more sophisticated approach to gathering data on international customers in order to be more effective at Supply Chain management on a global basis - in turn to be more competitive. |
| Problems
associated with J.I.T. |
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| Scott Adams "Dilbert" is
funny, but also a great way to illustrate some essential business terms.
In this particular cartoon, the point about J.I.T. is that companies who
adopt J.I.T. are doing it to save time and money, but they are also then
putting themselves into a position vulnerable to problems of the suppliers
- particularly time sensitive problems
These problems could be - weather problems - labour/union problems - regulatory changes |
| Problems
associated with J.I.T. |
- breaking down
due to local government problems
o road repair o municipal services o electricity, garbage removal, recycling - things which make it difficult for the J.I.T. to happen "in Time" |
| Problems
associated with J.I.T. |
Australians
have a lot of experience dealing with Japanese business culture so it is
interesting to read about their negative reaction to some aspects.
"The first issue - and arguably the source of all the other problems - is that the entire JIT philosophy is based on eastern cultural characteristics. As with other management accounting innovations which have emerged from Japan, it is reasonable to anticipate that there will be significant implementation impediments when these concepts are applied to western businesses." |
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