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organizations control systems

Consider the following questions:

�What are the benefits of just-in-time (JIT) techniques?

�What types of organisations use JIT techniques?

�Should things change if they are running smoothly?

In an approximately 850-word response, address the following issues/questions:

�Things that are running smoothly should not be subject to any control. If you commit yourself to just
finding and fixing problems, you’ll be able to carry out effective control (within an organisation) with fewer

personnel� (Minoura, 2003).

Discuss what the above statement means and whether you agree with it.

Describe how an organisation that you have experience of, or have researched, has benefitted from just-
in-time (JIT) techniques and with special reference to inventory control. Also discuss whether the potential
benefits�and drawbacks�of such JIT techniques are limited to large manufacturing businesses or

whether they have wider applications for other organisations.

Base your answer on research, your readings and your own experiences.

Please cite all references.



Different organizations use different control systems to ensure efficiency and positive
performance. A just-In-Time technique is one of the inventory and production control systems
that entities employ to ensure efficiency and to meet customer needs. The technique ensures that
materials purchased produce units required to meet customers’ demands. The paper therefore
deliberates on various aspects in references to JIT techniques.

In concur with the Minoura (2003) quote (as indicated in the question). This statement
means that when operations and systems do not encounter any problem, then no control is
needed. Effective control is achievable if an organization concentrates on finding the problems
and addressing them immediately. This will also require less number of workers in such an
organization. Therefore, the reason I do agree with the statement is that most organizations that
have invested in an effective inventory control system tend to experience challenges in their
operations. Furthermore, an organisation that has put in place sufficient measures to identify and
fix problems immediately will not encounter many challenges and vice versa. The reason most
organisations fail to operate smoothly is they lack appropriate tools to identify problems and to
address the same in a short period. Such organizations, as well require few personnel since
systems run smoothly.

Many organizations have adopted JIT techniques and have accrued benefits from the
same (Bortolotti, Danese & Romano (2013). One such organization that has adopted JIT for the

longest time in its production more so in inventory control is the Toyota Company (Bortolotti,
Danese & Romano (2013). The company manufactures automobiles. It has a large market share
across many countries. Using this technique has enabled the company to make vehicles ordered
quickly and in an efficient way. The company delivers vehicles to its customers as quickly as
possible because of utility of JIT (Bortolotti, Danese & Romano (2013). The company produces
vehicles and their components required by the next process and this ensures flow in its
production process. Since production in Toyota is highly repetitive, JIT technique has
contributed to improvement in its operational performance. The company achieves high volume
production with fewer inventories at the right time as a way to eliminate wastes and ensure
continuous improvement (Sandanayake & Oduoza, 2009). Furthermore, the company has
minimized its warehouse costs since it has reduced the number of warehouses they maintain. The
carrying costs as well reduce because it reduces inventory that the company keeps.

The company as well has recorded improvement in their supply chain management,
making it become more efficient and competitive. An efficient supply chain lowers
manufacturing process costs that the company passes to the customers. The products they sell are
more affordable and this has made it gain a larger market share making it stay ahead of its
competitors. The company has also a greater control level over the entire manufacturing
processes, and this has enabled it serve its customers well (Chan, Yin & Chan, 2010). Through
JIT, the company responds quickly to change in customers’ needs. This as well helps the
company to cut on wastes in an event some of the units produced are defective.

According to Bortolotti, Danese & Romano (2013), JIT is not appropriate in non-
repetitive context because of the high level of product customisation and demand variability.

Further, the company production line can easily come to a halt in case of unexpected disruptions
such as unavailability of essential parts. This can negatively affect the profitability of the
company. JIT is also associated with various constraints that vary across manufacturing contexts.
These constraints include inaccuracies of information that forecasts demand, capacity of the
vendor to deliver certain products as well as their commitments, sudden design changes on
parts, frequent/constant changes in production scheduling among many others (Nadarajan,
Chandren & Mohamed Elias, 2013).

It is also important to note that drawbacks and benefits of JIT techniques cuts across
other larger industries dealing in other products and services. Most manufacturing companies
that deal in repetitive productions stands a better change to benefit from JIT techniques. Such
organisations include companies such as Toyota, Dell, IBM, and even service industries such as
McDonald. Those manufacturing companies in non-repetitive context experience demand
variability and higher product customizations hence not recommended to adopt JIT.
Manufacturing companies such as Toyota has benefited a lot from the technique. The company
has managed to service larger markets with its vehicle brands because of the efficiency
associated with JIT. Service industry such as McDonald has as well succeed and remained
competitive in the market because of using JIT techniques.

JIT techniques have experienced continuous improvement over the years. Many
manufacturing companies as well have adopted JIT techniques because of the benefits it accrues
to such organisations such as eliminating wastes and enhancing operational performances. Major
manufacturing companies have used JIT for long periods and have benefited greatly. They have
managed to satisfy their customers, reduce waste, and gain a competitive edge over its

competitors. JIT technique is therefore an effective and efficient inventory control system that
can save companies lots of money and enable them gain competitive edge.

Reference List

Bortolotti, T, Danese, P, & Romano, P 2013, ‘Assessing the impact of just-in-time on operational
performance at varying degrees of repetitiveness’, International Journal Of Production
Research, 51, 4, pp. 1117-1130, Business Source Complete, EBSCOhost, viewed 9 July
Chan, H, Yin, S, & Chan, F 2010, ‘Implementing just-in-time philosophy to reverse logistics
systems: a review’, International Journal Of Production Research, 48, 21, pp. 6293-6313,
Business Source Complete, EBSCOhost, viewed 9 July 2015.

Minoura, T 2003, ‘The Toyota production system’, A

Nadarajan, S, Chandren, S, & Mohamed Elias, E 2013, ‘Hiccups in just–in–time practices for
electrical & electronic manufacturing’, International Journal Of Academic Research, 5, 5,
pp. 269-271, Academic Search Premier, EBSCOhost, viewed 9 July 2015

Sandanayake, Y, & Oduoza, C 2009, ‘Dynamic simulation for performance optimization in just-
in-time-enabled manufacturing processes’, International Journal Of Advanced
Manufacturing Technology, 42, 3/4, pp. 372-380, Academic Search Premier,
EBSCOhost, viewed 9 July 2015.

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