Question

What are the Information Systems required to implement JIT in a corporation?

Describe the purpose of each information system and their relationship.

Start from the customer order and explain the information exchanged between the Information Systems by the Customer, the Corporation, and the Supplier in order to manufacture the customer order and pay the parts provided by the Supplier.

Answer 1

Just-in-Time (JIT)

The JIT system is a management strategy that the raw material order from the supplier directly with the production schedule of the company, this strategy imply by the company to increase the efficiency in the business and also it will be helpful to reduce waste by receiving goods only at the time of need them during the production process .

JIT is helpful in reducing the inventory cost but the produce require to forecast the demand accurately , then only this system work effectively and with full of efficiency. JIT manufacturing technique first used by Toyota production system for manufacturing their car in 1970s .

JIT inventory system has various advantage over the traditional model , under this system if the production runs short, manufacturer quickly move from one product to another but under JIT it help to reduce cost by minimizing warehouse needs .

Purpose and Exchange Information

- the JIT inventory system is a management strategy that is helpful to minimize the inventory and also helpful in increasing efficiency

- this system is helpful to avoid overcapacity of work in progress

- the main reason for success of JIT production process realize on the ground that there is steady production , high quality workmanship , no machine breakdown and also reliable supplier make possible to work to the maximum level with high production volume.

- JIT production system cut the inventory cost due to the fact that manufacturer do not have to pay storage cost, for their product

- manufacturer has also not left with unwanted inventory if it is observed that the order has been canceled or not to be fulfilled in the near future

- company also spend less money on the raw material because company buy enough resources to make the ordered product and no need for extra raw material

The JIT appear to offer number of advantages in terms of productivity , waste reduction and human resources management

JIT manufacturing also known as just in time production or Toyota production system (TPS) is aimed to reduce timing within the production system as well as response time from supplier to the final consumer , it was originated and developed in Japan

For success of JIT , will totally depend on the fact that is is necessary to find the supplier that are close or can supply material quickly at a very short notice , so that this system work very effectively and also helpful in reducing the storage cost , less work in progress in form of raw material , and also customer obtained the product easily and in time bond manner.

The main drawback of the system is that employees work at the risk when natural and man - made disaster will disturb the flow of energy and goods and services just like covid-19 pandemic , which disruption in JIT practice

So, overall analysis shows that JIT system is worked good for the company in advance and help to reduced cost both from the manufacturing cost is concerned and also customer obtain the product at less cost which gives advantages to the nation also by increased GDP.

JIT system work for the suppliers also if the suppliers are work harder and supplies to the company raw material at time of need by reducing cost to the product and helping to raise the level of the return on the investment. So, this technique is unique one.