Just resources can be reduces and used more

Just in time (JIT)
originated in Japan, as recognized technique, philosophy or way of working is
generally associated with the Toyata motor company, JIT being initially known
as the “Toyata Production System”. JIT due to increasing global competition,
manufacturing entities and a vast variety of companies around the world have
addressed more attention to customer satisfaction and competitive advantage
(Gupta, 2011).  Nowadays, business environment
are characterized by three aspects: competitiveness, readiness to confront and
adapt to unpredictable change and fluctuations in demand, and strict customer
requirements seeking for high quality products and the fulfilment of specific
needs (Delgado, 2000).   

Just in time (JIT)
philosophy is directed toward the elimination of waste by streamlining
production processes, reducing setup times and controlling flow of materials and
providing preventive maintenance to equipment and machinery activities, inventory
and resources can be reduces and used more efficiently (Tan, 2005). For example
an organisation is Harley-Davidson
Motor Company a leading US motorcycle manufacturer, was struggling to
increase its bike sales in the face of rapidly shrinking market caused by the
economic slowdown and changes in demographics after World War II. Harley-Davidson, the nation’s
No.1 seller of heavyweight motorcycle, offered more than 30 models of touring
and custom Harleys through a worldwide network of more than 1,500 dealers. Harley
Davidson faced fierce competition from Japanese companies with the entry of
Suzuki, Yamaha, Kawasaki and Honda into the American market in the 1960. The
Japanese manufactures were able to provide better quality bikes at a relatively
lower price. Reacting to this, Harley-Davidson filed a dumping case against the
Japanese competitors, claiming that they were dumping the bikes in the US at
unfair prices. In the 1990s the Harley Davidson was credited with achieving a
remarkable turnaround by adopting various operational strategies including Just
in time (JIT) manufacturing, after showing less than efficient process they
turned to JIT and by having inventory on hand they lead to shorter lead times
and much more efficient services for customers. Harley-Davidson found that
there were three most important practices of Japanese companies which differentiated
their production process that of others: JIT manufacturing, employee
involvement, and the use of statistical process control. However, they
succeeded in manufacturing high quality motor cycles at low cost. Harley-Davidson
achieve reduction of rework by 68%, inventories of WIP decreased by $22
million, inventory costs have fallen by 75% and also increase of productivity.

With JIT inventory,
manufactures keep only as many parts on hand as needed for immediate use
instead of large pools components and tools lying around the facility (Daniel
Gross, the turnaround at Harley-Davidson. The adoption of MAN let Harley cut
its inventory by 75% and allowed its two assembly plants to operate without
stockrooms (Daniel Gross). The reduction of inventory cleared space on the
factory floor, thereby eliminating assembly-line bottlenecks. Since inventory
came in smaller batches, adjustments could be made before the next supply of
components arrived (Daniel Gross, 1996).

The major shortcoming
of the JIT to Harley Davidson’s, also has weakness, the biggest problem in JIT
is dependency. If a supply chain is not well interconnected or something breaks
anywhere, it may have negative impact on supplies and the product or the
services will not be delivered on time. Any problem will have a chain of
consequences for other companies relying on the one having troubles.  Harley Davidson success in re-mastering the
heavy motorcycle industry was the adoption of JIT system. There are lots of
advantages of incorporating Just-in-Time inventory management in company. If
there is a good coordination with suppliers, the company will certainly have
benefits from JIT, and it will be reflected with more efficiency in production
operations and will results in inventory and cost control, so it will also have
positive impact on customer’s expectations. It means that Harley Davidson
reduces the cost of maintaining inventories and at the time the supplies were
not threatened.

Harley
Davidson success with implementation of JIT had a lot to do
with the fact that when JIT was put practice, process problems could no longer
be hidden by costly inventory that help to meet ship dates. JIT might be
beneficial, but as with Harley Davidson, it has to be implemented wisely and
management should be aware of the possible consequences of this approach.

 

 

 

 

 

 

Question
B:

A services is an act
performance offered by one party to another. They are economic activities that
create value and provide benefits for customers at specific and places as a
results of bringing desired changed (William B, 2011). The term services are defined
in a number of ways but not a single one is universally accepted.

The services have four
type attributes which make them different from that of goods. The most common
characteristics of services are intangibility, perishability, variability and
inseparability.

First services is intangibility cannot touch them
are not physical objects. Since, services are not tangibles, they do not have
features that appeal to the customers senses, evaluation, unlike goods, is no
possible before actual purchase and consumption. While selling or promoting a
services one can derive having spent on these services. Example an airline
sells a flight ticket from A destination to B destination. Here is the matter
of consumer perception of services than smelling it or tasting it (Chandrashekhar,
2014). So, as a result of this, the services are not known to the customer
before they take them.

Second services is perishability cannot be stored,
saved, returned or resold once they have been used. Services too, are
perishable like labour, services a high degree of perishability. Sometimes
demand exceeds maximum available supply or demand exceeds optimum supply level
(Linda, 2011). Therefore, a marketer should effectively utilize the capacity
without deteriorating the quality to meet the demand. For example, a customer
dissatisfied with the services of a barber cannot return services of the haircut
that was rendered to him (MSG team, 2011).

Third services is variability as they depend on
the service provider, and where and when they are provided. Service buyer are
aware of this variability. So the services firms should make an effort to
deliver high and consistent quality in their service. For example, the uber
services that transports the consumer from A to B is different from the uber
services that transport the same consumer from B to A, trip involved a
different point in the time, another direction and maybe another route for
drivers.

Fourth services is inseparability involves the
simultaneous production and consumption which attribute most services. Services
and their providers are associated closely and thus, not separable. They are
willing to pay money to save time and effort and to have a specialist do the
task better than they would (Gimmesson, 2004). For example taxi operator driver
taxi and the passenger uses it. The presence of taxi driver is essential to
provide the services. The services cannot be produces now for consumption at a
later stage or time. Therefore, inseparability is an important attributes of
service which proves challenging to services management industry.

The service have unique
attributes which make them different from that of goods. The most common
attributes of services are intangibility, perishability, variability and
inseparability. The term services are defined in a number of ways and gave some
example to accept.