Just-In-Time

Case Study # 116908

Business > Applied Operations
Business > Companies
Business > Management

Just-In-Time

A look at how the theory of just-in-time can minimize warehouse costs.

1,243 words () | 3 sources | MLA | 2009 United States

Paper Summary:

This paper briefly discusses the workings of a factory warehouse and in particular looks at how it has been revolutionized by the just-in-time (JIT) practice of inventory. The paper explains that the idea behind just-in-time inventory is the "dock to factory floor" approach where material supplied at the right quantity, and at exactly the right time eliminates storage costs. The paper further explains that JIT works on the premise of low-inventory and then demonstrates JIT using its implementation by the car manufacturer Chrysler as a case study.

From the Paper:

"Workers involved in processes that generate defects or rework should be well-trained to use their initiative to overcome these defects. They have to think why there are problems. They can no longer reach into safety stock because there is no extra stock available. This method helps to create spontaneous innovations which are needed in every process of a J-I-T line. An example is described here by Yu. Yu writes in MITSloan Management Review, about a company assembling stock components with a pneumatic screwdriver. Because of fluctuations in air pressure, the screwdriver would slip and the product has to be discarded. This was wastage which the company could not afford to write off. Typically, the engineer or the manager concerned would take some time to implement a control mechanism to prevent this situation from happening. But as it turned out, a worker came up with an innovative idea: Install a screw nail to the slot so that the screwdriver cannot slip from the screw head. It worked perfectly for this given situation."

Sample of Sources Used:

Ball, Jeffrey. "Chrysler Averts a Parts Crisis - Logistical Logjam From U.S. Disasters Tests Ingenuity, Stamina of Auto Makers' Leadership - Disruptions Expose Flaws in Just-in-Time System" Asian Wall Street Journal. 25 Sept 2001.
Reid, R. Dan & Sanders, Nada R. Operations Management, 3rd edition. John Wiley & Sons. Inc, 2006. < http://bcs.wiley.com/he-bcs/Books?action=contents&itemId=0471320110&bcsId=1114>
Yu, Larry. "Improving Quality Just In Time." MITSloan Management Review. 2001. 21 July 2006. <http://sloanreview.mit.edu/smr/issue/2001/summer/1i/>