JUST IN TIME SYSTEM and Its Benefits

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Discussion Outline
Introduction Presentation of the risks and benefits of implementing Just in Time System a. In an environment where business competition dictates majority of the courses in educational institutions, having this kind of knowledge is very much a good edge. b. Just in Time System is a highly coordinated processing system in which goods move through the system, and services are performed just as they are needed. 2. The discussion participants will be introduced individually and formally by the host to the audience.

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The Problem

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Production process is slow, wasteful and full of complexities. It presents a serious problem since major industries of today need to be competitive which entails decreasing costs, increasing profit while still maintaining quantity.

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Today we see that companies are implementing JIT since it has proven to be very effective and efficient. JIT has its roots in Japan, and since then and as the past decade JIT has been adopted by no less than Ford Mfg. Company, Mc Donalds, and Dell to name a few. The system originated in the late 1940s and early 1950s when Toyota was producing exclusively for a domestic market that wasnt very strong. Indeed, recession thinking underlies a big part of Just in Time System. The system started operating to have a better system that will satisfy the needs of the market through an efficient and effective way.

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It has been taken great consideration by large companies.

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It affects all the small and large business enterprises both manufacturing and service. Solution will be judged based on their after profit and costs.

Possible Solution 1. The members of the group propose the implementation of the Just in Time System. 2. The solution proposed is evidently effective and has a wide scope of benefits from the manufacturing to the end-users.

Evaluate and Choose Best Solution 1. It is the remedy for the problem. a. It eliminates the causes of the problem since it focuses on the roots of the problem. b. It is not a temporary expedient; the solution is permanent with proper preventive maintenance and management. 2. There is certainty that the Just in Time System is the best solution for the problem. a. It has the advantages of simultaneously having the key benefits a business enterprise needs like reduced inventory levels, high quality, flexibility, reduced lead times, increased productivity, and equipment utilization, reduced amounts of scrap and rework, and reduced space requirements. b. Since there is no such a perfect system, JIT may bring new disadvantages like absence of buffers such as extra personnel and inventory stockpiles to fall back on if something goes wrong. The possible results include lost sales and lost customers. c. The system is practical. It will work with careful planning and efforts to achieve a smoothly functioning system. d. One good proof is the Toyota Motor Company of Japan. After implementing such system, the company became successful and is considered the one of the most successful companies in the world.

Action 1. The solution will be put into operation by actually implementing the system to ones business enterprise. 2. The following plans should be adopted: a. Make sure that the top management is committed to the conversion and that they know what will be required. b. c. d. e. Study the operations carefully. Obtain the support and cooperation of workers. Enlist the aid of workers in identifying and eliminating existing problems. Gradually convert operations, beginning at the end of the process and working backward. f. g. Convert suppliers to JIT and be prepared to work closely with them. Be prepared to encounter obstacles of implementation.

Group members: Paolo Bagares Joanie Charmaine B. Hernandez Denjer Rafael Karen Germo Maryjun Quimlat Grace Ramos Nelette Veloso Jay Ryan Dalo Cheilo Beronio

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