Just in time (JIT)originated in Japan, as recognized technique, philosophy or way of working isgenerally associated with the Toyata motor company, JIT being initially knownas the “Toyata Production System”.
JIT due to increasing global competition,manufacturing entities and a vast variety of companies around the world haveaddressed more attention to customer satisfaction and competitive advantage(Gupta, 2011). Nowadays, business environmentare characterized by three aspects: competitiveness, readiness to confront andadapt to unpredictable change and fluctuations in demand, and strict customerrequirements seeking for high quality products and the fulfilment of specificneeds (Delgado, 2000). Just in time (JIT)philosophy is directed toward the elimination of waste by streamliningproduction processes, reducing setup times and controlling flow of materials andproviding preventive maintenance to equipment and machinery activities, inventoryand resources can be reduces and used more efficiently (Tan, 2005). For examplean organisation is Harley-DavidsonMotor Company a leading US motorcycle manufacturer, was struggling toincrease its bike sales in the face of rapidly shrinking market caused by theeconomic slowdown and changes in demographics after World War II. Harley-Davidson, the nation’sNo.1 seller of heavyweight motorcycle, offered more than 30 models of touringand custom Harleys through a worldwide network of more than 1,500 dealers. HarleyDavidson faced fierce competition from Japanese companies with the entry ofSuzuki, Yamaha, Kawasaki and Honda into the American market in the 1960.
TheJapanese manufactures were able to provide better quality bikes at a relativelylower price. Reacting to this, Harley-Davidson filed a dumping case against theJapanese competitors, claiming that they were dumping the bikes in the US atunfair prices. In the 1990s the Harley Davidson was credited with achieving aremarkable turnaround by adopting various operational strategies including Justin time (JIT) manufacturing, after showing less than efficient process theyturned to JIT and by having inventory on hand they lead to shorter lead timesand much more efficient services for customers. Harley-Davidson found thatthere were three most important practices of Japanese companies which differentiatedtheir production process that of others: JIT manufacturing, employeeinvolvement, and the use of statistical process control. However, theysucceeded in manufacturing high quality motor cycles at low cost. Harley-Davidsonachieve reduction of rework by 68%, inventories of WIP decreased by $22million, inventory costs have fallen by 75% and also increase of productivity. With JIT inventory,manufactures keep only as many parts on hand as needed for immediate useinstead of large pools components and tools lying around the facility (DanielGross, the turnaround at Harley-Davidson.
The adoption of MAN let Harley cutits inventory by 75% and allowed its two assembly plants to operate withoutstockrooms (Daniel Gross). The reduction of inventory cleared space on thefactory floor, thereby eliminating assembly-line bottlenecks. Since inventorycame in smaller batches, adjustments could be made before the next supply ofcomponents arrived (Daniel Gross, 1996).
The major shortcomingof the JIT to Harley Davidson’s, also has weakness, the biggest problem in JITis dependency. If a supply chain is not well interconnected or something breaksanywhere, it may have negative impact on supplies and the product or theservices will not be delivered on time. Any problem will have a chain ofconsequences for other companies relying on the one having troubles. Harley Davidson success in re-mastering theheavy motorcycle industry was the adoption of JIT system. There are lots ofadvantages of incorporating Just-in-Time inventory management in company. Ifthere is a good coordination with suppliers, the company will certainly havebenefits from JIT, and it will be reflected with more efficiency in productionoperations and will results in inventory and cost control, so it will also havepositive impact on customer’s expectations. It means that Harley Davidsonreduces the cost of maintaining inventories and at the time the supplies werenot threatened. HarleyDavidson success with implementation of JIT had a lot to dowith the fact that when JIT was put practice, process problems could no longerbe hidden by costly inventory that help to meet ship dates.
JIT might bebeneficial, but as with Harley Davidson, it has to be implemented wisely andmanagement should be aware of the possible consequences of this approach. QuestionB: A services is an actperformance offered by one party to another. They are economic activities thatcreate value and provide benefits for customers at specific and places as aresults of bringing desired changed (William B, 2011). The term services are definedin a number of ways but not a single one is universally accepted. The services have fourtype attributes which make them different from that of goods. The most commoncharacteristics of services are intangibility, perishability, variability andinseparability.
First services is intangibility cannot touch themare not physical objects. Since, services are not tangibles, they do not havefeatures that appeal to the customers senses, evaluation, unlike goods, is nopossible before actual purchase and consumption. While selling or promoting aservices one can derive having spent on these services. Example an airlinesells a flight ticket from A destination to B destination. Here is the matterof consumer perception of services than smelling it or tasting it (Chandrashekhar,2014). So, as a result of this, the services are not known to the customerbefore they take them.Second services is perishability cannot be stored,saved, returned or resold once they have been used.
Services too, areperishable like labour, services a high degree of perishability. Sometimesdemand exceeds maximum available supply or demand exceeds optimum supply level(Linda, 2011). Therefore, a marketer should effectively utilize the capacitywithout deteriorating the quality to meet the demand.
For example, a customerdissatisfied with the services of a barber cannot return services of the haircutthat was rendered to him (MSG team, 2011). Third services is variability as they depend onthe service provider, and where and when they are provided. Service buyer areaware of this variability. So the services firms should make an effort todeliver high and consistent quality in their service.
For example, the uberservices that transports the consumer from A to B is different from the uberservices that transport the same consumer from B to A, trip involved adifferent point in the time, another direction and maybe another route fordrivers. Fourth services is inseparability involves thesimultaneous production and consumption which attribute most services. Servicesand their providers are associated closely and thus, not separable. They arewilling to pay money to save time and effort and to have a specialist do thetask better than they would (Gimmesson, 2004). For example taxi operator drivertaxi and the passenger uses it. The presence of taxi driver is essential toprovide the services.
The services cannot be produces now for consumption at alater stage or time. Therefore, inseparability is an important attributes ofservice which proves challenging to services management industry. The service have uniqueattributes which make them different from that of goods.
The most commonattributes of services are intangibility, perishability, variability andinseparability. The term services are defined in a number of ways and gave someexample to accept.