MALAN

Topics: Lean manufacturing, Manufacturing, Management Pages: 63 (14278 words) Published: September 21, 2014

TABLE OF CONTENTS

1.0 INTRODUCTION
1.1 The Importance of Just In Time (JIT)
Nowadays, companies used Just In Time (JIT) systems control work flow by bringing in materials and sending out goods on demand which is ideally, just enough to provide what consumers want. JIT also is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. In just in time manufacturing system inventories are reduced to the minimum and in some cases they are zero. Companies typically hold inventory in three locations which are raw materials, work-in-process inventory of partially worked materials or sub-assemblies for workstations to complete, besides finished goods to be shipped out to customers. Mostly, fast food restaurants implement JIT system for instances McDonald, Kentucky Fried Chicken (KFC), Marrybrown and etc. these companies can make customer satisfied with their services because of their system. Thus, the JIT system makes the company produced good quality of product by purchasing their inventories on the day they serve to customers. The importance of JIT brings a lot of benefits to the company that implementing this system. The best thing about using this JIT system is the company no worries about having any warehouse to store their inventories. Besides that, they also can deal with low cost and have strategy to manage their inventories. Areas previously used to store inventories can be used for other more productive uses.

1.2 The Objectives of the Study
The objectives of this study are:
i.to understand the implementation of just in time.
ii.to identify the benefits of just in time.
iii.to recognize the limitations of just in time.
1.3 The Research Methodology
Field Study
The researchers used a Malaysian company that is Marrybrown. This study focused on the inventory management that being applied by the company that is Just In Time (JIT) system. A field study of company practices was conducted using interview sessions by telephone Marrybrown Company at Changlun on 1st October 2013 and make an appointment for interview. Then, the person who hang on the phone was Encik Fitri which in position operation manager cum supervisor and he agreed and allowed us to interview him. We go for interview on the same day we make an appointment at 4.00pm. The duration of interview session about one hour, besides we also takes some picture on how their operation work on counter and the inventory of their goods like chicken, the cashier system and etc. This method was chosen, as opposed to wide-ranging survey, because it enabled researchers to obtain more information by interviewing and collecting company documents. Case studies have often been viewed as a useful tool for the preliminary exploratory stage of a research project Rowley (2002). Therefore, we were of the opinion that their practice would be very much similar to that of other players. Moreover, the reason for the selection of company was to ensure that the company under study had enough sophistication, with respect to management expertise and sound accounting system, to meet the purpose of the study. 2.0 LITERATURE REVIEW

2.1 The Definition of JIT
According to Kokemuller (2013) just in time (JIT) inventory is a management system in which materials or products are produced or acquired only as demand requires. This approach to managing inventory has become increasingly popular in the early 21st century as suppliers and retailers collaborate to try to control inventory costs while still meeting customer demands. Just-In-Time (JIT) manufacturing is a Japanese management philosophy applied in manufacturing which involves having the right items of the right quality and quantity in the right place and the right time. It has been widely reported that the proper use of JIT manufacturing has resulted in increases in quality, productivity and efficiency, improved communication and...

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