JIT, system integration and customer service

Richard E White, John N Pearson

International Journal of Physical Distribution and Logistics Management

2001, Vol. 31, No 5, 313-333

1)      Introduction

  1. a) USA
  2. i) Reducing productivity growth rate
  3. ii) Becoming less competitive in new environment

iii)     Should become more adept at integration of production systems

  1. b) Strategies to achieve overall system effectiveness
  2. i) Focus orientation of the organization toward customer service
  3. ii) Continuous system effort toward the reduction of throughput time

iii)     Motivational adaption of the organization to achieve high levels of customer service

2)      Total enterprise manufacturing

  1. a) Synchronized supply chain: collaboration
  2. b) Future success factors
  3. i) Increased flexibility
  4. ii) Supplier partnerships

iii)     Mass customization

  1. iv) Customer interaction
  2. v) Open communication
  3. vi) Continuous improvement

vii)   Integrative relationships throughout the enterprise

3)      JIT

  1. a) System of continuous improvement
  2. i) Creates flexible environment
  3. b) Ten management practives
  4. i) Focused factory
  5. ii) Group technology

iii)     Reduced set-up time

  1. iv) Total productive maintenance
  2. v) Multi-function employees
  3. vi) Uniform workload

vii)   Kanban

viii)  Just-in-time purchasing

  1. ix) Total quality control
  2. x) Quality circles
  3. c) Value chain
  4. i) Primary activities

(1)   Inbound logistics

(a)    JIT exploits linkages between purchasing and traffic

(b)   Links supplier to shop floor

(c)    Depends on reliable transportation

(2)   Operations

(a)    Continually strive to improve ability to respond to unanticipated demand

(b)   Reduced set-up times, group technology, total productive maintenance, uniform workload

(c)    Developing greater efficiency and responsiveness by streamlining operational activities

(3)   Outbound logistics

(a)    Collecting, storing and physically distributing products

(b)   Transportation selection

(i)      Focus on customer service

(ii)    Emphasis on product life-cycles

(4)   Marketing and Sales

(a)    Advertising and promotion

(b)   Channel selection

(c)    Pricing

(d)   Utilizes total quality control and quality circles to design system

(5)   Service

(a)    Activities occurring after production activities

(b)   Customer service links, matches and integrates supplier system with customer system

  1. ii) Support activities

(1)   Procurement

(a)    Reduce number of suppliers

(b)   Increase quantity of orders

(c)    Develop long-term relationships

(d)   Interdependence

(2)   Technology development

(a)    Enables competitive advantage

(3)   Human resource management

(a)    Multi-function employees and quality circles allow for full employee utilization

(b)   Improves communication

(4)   Firm infrastructure

(a)    Flatter structures produce more efficient vertical information flows

4)      Integration through Value System

  1. a) Value System
  2. i) Profits result when product’s market value exceeds the cost to the firm
  3. b) Information flows
  4. i) Communication must be effective and timely
  5. ii) Critical to performance

iii)     Challenge is to establish appropriate linkages

  1. c) Integration
  2. i) Management must lead effort
  3. ii) Training must occur along the supply chain

iii)     All management members must be involved