A Review Of Successful JIT Implementations Information Technology Essay

A Review Of Successful JIT Implementations Information Technology Essay Globalization has led to an enormous increase in competition in all segments. Manufacturing, Service, Banking etc. nobody is protected by it. So to gain an edge over your competitors companies are highly focused on improving their processes and systems to reduce the throughput time which subsequently leads to cost-savings. As Just-In-Time is a lean management principle, it definitely results in overall cost reduction. But even after the underlying benefits of implementing a methodology like JIT, there is still a certain amount of reluctance to adopt this philosophy due to various reasons like lack of understanding of the process, benefits associated with implementation, apprehensions to change from traditional methods of production to modern methods, adopting new technologies, capital expenditure and numerous other factors. Such events hamper the growth of the industries and the growth of the nation as well. What the firms fail to understand is that this is an adopted practice and m ay not produce the exact expected results. Moreover, it takes time to implement JIT because it demands an entire process reform. Even Toyota (inventor of JIT), took more than 20 years to get to the lean system, which the looks upto. With not quickly getting the results and incurring of some initial costs, firms often refrain from getting into the trial phase. The study highlights the major issues Supply Chain faces in India which makes the lean practices difficult and desired output are not obtained. SIGNIFICANCE OF STUDY The study highlights a certain unfairness of the much idealized JIT philosophy if adopted blindly. Every concept behaves in a certain pattern in different scenarios. The main significance of the study is to find out the methods of the Risk Management in Supply Chain for smooth adoption and working of Lean management thus taking a leap ahead towards the successful implementation of JIT. The recommendations mentioned in the end are in context to the stories of Indian Firms but can be applied globally as India has made a mark on the International Globe. The study also highlights methods to overcome these failures related to implementation of JIT in India. REVIEW OF LITERATURE JUST IN TIME It is a manufacturing system with a goal to optimize processes and procedures by continuously pursuing waste reduction. The entire process was developed by Taiichi Ohno after the Second World War in competition to the American Automobile Industry. But the demand being less, the Japanese could not afford to order by EOQ & stock an inventory. So to keep the waste and operational cost to a minimum, Taiichi came up with the concept of Just-In-Time (JIT) where any item moves the production system on need. Systems were non-automated, there was no over-production and the time spent in waiting for parts and processing of order was now minimized. The inventories levels were reduced and so were the waste. When a car was selling at a particular selling price such that PRO FIT = (SELLING PRICE – COST) then cost leveling was the only option to raise profit levels. Also JIT got with itself cellular manufacturing when machines were clustered so that items move smoothly in the process. The workers were now trained to be multi-skilled to be able to work on more than one machine.