![]() The business introduced sophisticated methods of making burger. McDonalds implemented JIT in their systems to face the difficulties related to obsolescence of their raw food in restaurants as well as the time required to fulfill an order. One of the examples is McDonalds, an American chain of restaurants which is spread in almost whole of the world. Now-a-days there are a number of companies that are using just-in-time in their businesses or specific segments of business in order to improve their operational and productive efficiency. Additionally there was no appropriate policy of pricing present due to which it was inevitable to reduce their manufacturing costs. The main limitations that Japanese auto mobile industry especially Toyota tried to overcome by using JIT were that Japanese companies could not produce their products in batches as the size of their industry was very small and had less ‘economies of scale’. Because, management of Toyota Company realized that in order to apply JIT effectively, they have to keenly focus on the training and commitment of their employees and enhancement of their systems to their full capacity. ![]() Toyota had to improve their internal systems and external relations with their suppliers and customers to implement the strategy. It was first adopted by ‘Toyota Manufacturing Plants’ in the early 1970’s. The theory of Just-in-time is a ‘Japanese Management Philosophy’. This reduces the ‘lead time’ for the company and the holding costs, simultaneously the losses of inventory are significantly minimized which varies based upon the nature of business. Therefore a company only buys its raw material when it needs to commence production. The primary focus of the technique is to reduce the time taken between the placing of the order by a company for raw materials and delivering the finished goods to the customers. So, the implementation of Just in time approach makes the level of raw material that will be used and the level of inventory that would be available in the company at a specified time. ![]() This is achieved by aligning the orders placed by the customers with the orders placed for the raw material. The strategy is to arrange the orders of raw materials in such a way that the goods are only ordered when required for production. Just-in-time (JIT) is a management approach that is used to control the flow of inventory to and from a business in order to minimize inventory levels and to improve the efficiency of the manufacturing processes.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |