Improve the quality control system. Just In Time JIT is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs.
Received Aug 27; Accepted Nov This is an open access article distributed under the terms of the Creative Commons Attribution License http: This article has been cited by other articles in PMC.
Abstract In recent years, inventory management is continuous challenge for all organizations not only due to heavy cost associated with inventory holding, but also it has a great deal to do with the organizations production process. This study attempts to identify the key strategies for successful implementation of just-in-time JIT Production operation concerns when implementing strategies philosophy on the cement industry of Pakistan.
The results show that implementing the quality, product design, inventory management, supply chain and production plans embodied through the JIT philosophy which infect enhances cement industry competitiveness in Pakistan.
JIT implementation is a vital manufacturing strategy that reaches capacity utilization and minimizes the rate of defect in continuous flow processes. The study emphasize the need for top management commitment in order to incorporate the necessary changes that need to take place in cement industry so that JIT implementation can take place in an effective manner.
Just-in-time management, Production process, Structural equation model, Cement industry, Pakistan Introduction In the face of current economic crunch, companies are looking for the ways to cope with the situation by opting for cost reduction and quality products at the same time.
Referring back to Japanese manufacturing success in s, companies find the TQM and just-in-time JIT inventory management systems are some of most popular ways to have lower cost and high quality products Daniel and Reitsperger Advantages of implementing JIT are enormous.
Klein and Devens argued that it leads to efficiency and effectiveness. JIT increases communication inside the organization as well as outside the organization with other organizations such as vendors and distributors Inman and Mehra JIT implementation also leads to the reduction in the cost of purchase which has been the major expense for many industries Gargeya and Thompson Just in time tries to promote managerial involvement and organizational discipline Ptak ; Bolander et al.
JIT also tends to combine the different organizational functional areas. It specially endavour to make connection between accounting and production Johansson ; Sandwell and Molyneux ; Green et al.
Biggart and Gargeya found that JIT implementation helps to minimize the amount of work-in-process inventory, raw material and the finished goods.
Thus all these advantages are contributing in lowering the costs of production and the product itself. However, implementation of JIT has posed many setbacks to the firms who are actually following this philosophy.
For example, Japanese faced several problems while implementing this philosophy such as suppliers have been blamed for inconsistency in the delivery process due to traffic problems. Some experts also blamed that JIT philosophy switches the responsibility of this inefficiency from more powerful and large manufacturing companies to smaller, lesser powerful vendors.
JIT is also vulnerable in the management of natural catastrophes such as earthquakes, floods, storms etc. Beyond these above mentioned barriers to the successful implementation of JIT approach, companies may also find problems due to gaps between the communication facilities available to manufactures and suppliers.
Proper training of the employees as well as the top management involvement is the important factors for the successful implementation of JIT Minahan Presence of accurate data including the accurate and reliable forecast of demand is a key for JIT to operate smoothly Francis Given the potentials of the JIT, implementation of this philosophy will be of great help to Pakistani companies in this current economic downturn.
Pakistan cement industry has exposed marvelous development since the time of independence. In the yearthere were just 4 operational cement units in West Pakistan having round about half a million tons per annum of production capacity.
Total demand through the same period was estimated at over a million tones. For the duration of these 3 decades, BY production went up from 3.
And in to Government policy of Pakistan moved towards denationalization and had complete focus towards construction and housing. In s in order to meet demand, the government permitted to set up 7 more units by the private sector housing units having total capacity of 2.
On the other hand, there were huge price differentials between public and private sector manufacturing units in Pakistan as SCCP i-e the scientific committee on consumer products fixed cement prices much lower for the public sector companies.
During toin hand capacity of the cement plants was not able to meet the local demand mainly in the north of Pakistan resulting an imminent and enormous need of increasing the in hand capacity of the cement plants in order to satisfy the growing need.
At the same time a few plants were also shut down due to different reasons resulting the dramatic increase in the prices in s. The shortage of local cement and high cost of import were a few main reasons behind this huge increase in the price at that time.
In the world and the local economy, by the projections for accelerated growth in demands, 5 more plants were set up to satisfy cement requirements at local level.
To overcome this problem, cement industry should rethink on the reduced deficits and focus on infrastructure building to meet the market demand and to maximize profit from its operations.
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Just-in-time JIT management philosophy focuses on the reduction of wastes and improves the efficiency of the manufacturing process. Same problem exists in the cement industry of Pakistan and the manufacturers are continuously looking the ways to reduce defects and efficient inventory management to increase the capacity utilization during the production processes.
The most imminent barriers to the successful implementation of JIT in Pakistan are electricity crisis, terrorism, natural catastrophes, economic crises, technology gap between the power manufacturers and the weak suppliers to name a few.
Keeping in view, the more specific objectives as follows: To investigate the imminent factors which somehow influences the cost associated with production process, reduce the inventory costs and smooth running of production process in cement industry of Pakistan.
To identify those factors which eliminate and reduce the waste of resources; inappropriate processes and redundant waiting time in the production processes.Learning objectives The main objective of this chapter to enable to students about production and operation issue relating to strategy implementation.
WHEN IMPLEMENTING STRATEGIES Learning objectives The main objective of this chapter to enable to students about production and operation issue relating to strategy implementation. Production/Operations Concerns When Implementing Strategies Strategy in action means implementation requires complete transparent process.
Dec 01, · JIT implementation increases performance by lower level of inventory, reduced operations & inventory costs was reduced eliminates wastage from the processes and reduced unnecessary production which is a big challenge for the manufacturer who are trying to maintain the continuous flow processes.
Production/Operation concerns when implementing strategies Introduction In the growing global competition, the productivity is the key for the survival of any business organization.
Among different functions in an organization, production/operations function is a vital function which does the job of value addition to product/service, respectively. Strategy implementation is also defined as the manner in which an organization should develop, utilize, and amalgamate organizational structure, control systems, and culture to follow strategies that lead to competitive advantage and a better performance.
Implementation is the process that turns strategies and plans into actions in order to accomplish strategic objectives and attheheels.comenting your strategic plan is as important, or even more important, than your strategy. The video The Secret to Strategic Implementation is a great way to learn how to take your implementation to the next level.