Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 1

to those needs, thus, we would not have to hold any excess inventory and by the end of the

season our leftovers would also minimized.

Jidoka:

Fazal (owner) would procure the used shoes in bulk from a wholesale market nearby Lahore
railway station, a major concern for him was that a good portion of it would get wasted as they
were either in bad condition to be sold (or) they were not the typical brand and style that would
sell in the local region and he would incur upfront losses. It would be better if he would inspect
the lot on the spot where he buys instead of bringing them all to his store and then inspecting
them for any defects. This proactive and upfront quality control will help the owner to classify
his goods into three segments:
1. Used shoes with satisfactory quality: Ones that the owner can sell at his shop with
reasonable certainty.

2. Used shoes in bad condition: In normal conditions these shoes have wear and tear and
are a wastage. But, the owner can repair and mend this category to a satisfactory level
and add value to it, and will be able to sell these shoes at a reasonable profit.

3. Unusual brand and style shoes: Instead of sending these shoes back to the market and
selling them at discounts, it would be better if he identifies this brand on spot, where he
can either replace them with the ones that have a demand at his shop (or) he can also sell
them at a reasonable price at the shoe market, and he would also be avoiding the
transportation costs also.

Heijunka:

One of the main concern for the owner was the uncertain product demand i.e. the traditional
chappals and sandals demand would peak during EID season, and the demand for school bags
would peak during back to school season and drop significantly afterwards. The problem was
often times, the product that was in high demand would have small quantities of it the bulk lot
size that he bought, and thus he would quickly run out the product category that would be in high
demand and lose out on significant profits. The concept of heijunka would improve the process
in such a way that that the unpredictable consumer demand for JSC products would match the
procurement of these goods and eliminate waste. Thus, the owner should ensure to procure
reasonable quantities of high product categories and since he had enough space in his shop to
store the additional quantities, it would be better to stock these quantities during low demand
season and be prepared to use it as a buffer for peak season.

You might also like