Assignment Students name: Hassan Ahmed Khan Program: MBA E Course: Cost accounting and management Write 2 types of each (industry wise): © JUSTIN TIME © THEORY OF CONSTRAINTS, * TOTAL QUALTY MANAGEMENT © Just in Time: JIT is considered to be one of the best ways to improve profitability since it implicates that inventory is ordered and received only when needed, as opposed to keeping a previously purchased stock of items. Here are the two examples of it. Example 1: One of the most famous examples of Just in Time manufacturing simply because it was one of the first to implement this strategy effectively. At Toyota the raw materials are not brought to the production floor until the order is received from the client and the product is ready to be built. During the process no parts are included in the next node unless they are required to. This keeps the amount of inventory to a minimum which as a result means lower costs. Moreover, this process allows Toyota to adapt rather quickly to their customer's demands without concerning themselves with excessive inventory and its disposal. Some of the factors that lead to Toyota’s success are that the small quantities of raw material are kept at the different stations assuring that there is always enough (o start production of any product, and once it has been made the parts are replaced. Additionally, itis necessary to have a very accurate forecast of the raw materials required for upcoming demand so that they can be stocked. Example 2: Fast food restaurants like MeDonald’s usually having everything they need ¢o assemble and don’t do so until the order has been taken, except for a few finished products. This makes the process so standardized that every time a customer goes they get the same experience. * Theory of Constraint: The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until itis no longer the limiting factos. ‘Scanned wih CamScannerExample 1: ‘Small appliances brand Murphy Richards challenged standard industry practices by adopting ‘Theory of Constraints. Consumer Durables brand, Murphy Richards, has seen dramatic improvement in stock outs and excess inventory at the distributor end. They have been able to optimize working capital by as much as 40%. All this has been achieved after the company decided to implement Theory of Constraints — within the company and extending the principles to include its distributors too. Example 2: Executive Credits Theory of Constraints for Company Turnaround. At the 11th annual conference for theory of constraints professionals, Mr. Mitsuo Hitomi described the crisis faced by Mazda to offer creative and innovative exhilarating driving to those people who still hold dear the love of motion experienced as a child while surviving four straight years of significant financial losses. Mr. Hitomi described the last chance for Mazda to survive by developing technology that would achieve low fuel consumption from an internal combustion engine that would rival a hybrid engine, no compromise in the driving pleasure, and affordable for all customers. The product development cycle had to be cut in half for Mazda to survive. Starting with Critical Chain Project management education in 2007, the momentum grew within the company for holistic project management until the development project duration was cut by half. Mr. Hitomi then described how this new technology was applied in a multi-project environment, with all projects delivered with full scope on time. * Total Quality Management: Total quality management (TQM) practices can be described as best ways in which organizations and their employees undertake business activities in ali key processes. These practices have a positive impact on business results in manufacturing and service industries. Example 1: One of the most famous examples of quality management is Toyota. Toyota implemented Kanban System to make its assembly line more efficient. ‘The company decided to keep just enough inventories to fulfill customer orders as they were generated. Example 2: In a large MNC producing white goods, the performance appraisal form has a column which asks, “Did you help a colleague at times of some difficulty though it was not required of you as per your role?” This was simply great as I have seen so many people go out of the way and help their colleagues only to be reprimanded by their bosses. They simply keep quiet. Their efforts go unsung, but not here. ‘Scanned wih CamScanner