Inventory Management Processes in Transition Think about the transition from tra

Question

Inventory Management Processes in Transition

Think about the transition from traditional inventory management methods to a just-in-time process. Using the readings, the presentation and the examples provided at the end of the lecture, how would you go about managing that transition? What contingencies would you plan for? How might you mitigate those contingencies? How would you handle the cultural shift within the operation? Please include references in at least your initial response.

http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/just-in-time.html

https://www.entrepreneur.com/article/220631

Explanation / Answer

- Just in time (JIT) is a philosophy that was first adapted by the Japanese company "Toyota".

- It has shown to the world that how a new philosophy can be successfully implemented in the organization which has made Toyota a world leader in efficiency and quality practices.

- JIT believes in working at very low level of inventory levels of the raw materials, work in process and finished.

- The traditional inventory management pactice belaives in having a inventory at each level of production.

- So that whenver there a breakdown of a machine in the value chain the production do not suffer.

- JIT belives in the phylosophy that there must not be any inventory. Inventory hides a probelm. If there is breakdown and there is no inventory, the complete focus of the management will be on that machine/ breakdown.

- To implement this philosophy, all the stake holders from the top management to the final workers must be educated on this system.

- Total Productive Maintenance and Preventive Maintenance must be implemented in the company prior to implementation of JIT, so that there are minimum breakdown.

- JIT is not limited to the OEM company itself but must be extended to the suppliers also.

- All the above discussed points must also be extended (implemented) to the suppliers and vendors also.

- Management and the other staff must not in a habit to find solve the problems in very less time as needed in JIT system. The organization may come across a problem of decrease in efficiency and less production due to prolonged breakdown.

Following arrangement must be made by the organization to mitigate the above contingencies.

Ideas from the workers must be encouraged and implemented as a Kaizen initiative, so that the system evolves during a period of time and becomes custom made system as per the company's needs.

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