THE PRACTICE IMPLEMENTATION OF JUST IN TIME INVENTORY (JIT)MANAGEMENT SYSTEM IN PROCTER AND GARMBLE LTD. NIGERIA. THE PROBLEMS AND CHALLENGES

Topics: Inventory, Manufacturing, Management Pages: 6 (1883 words) Published: October 11, 2013


PRESENTATION ON :
THE PRACTICE IMPLEMENTATION OF JUST IN TIME INVENTORY (JIT)MANAGEMENT SYSTEM IN PROCTER AND GARMBLE LTD. NIGERIA. THE PROBLEMS AND CHALLENGES

PRESNETED BY :
ADEOYE AKEEM ADEGBENGA.
CENTRE FOR POSTGRADUATE AND RESEARCH,
KULLIYAH OF MAMAULAT,
INSANIAH UNIVERSITY COLLEGE.

TABLE OF CONTENTS.
1. Executive Summary
2. Company’s background
3. Introduction – JIT
4.0 Findings and Analysis
4.1 Poor implementation/practice
4.2 Problems and challenges
5 Recommendations
6 Conclusions.

Executive Summary
This study reflects on the implementation and practice of Just In Time ( JIT) Inventory management system in manufacturing organisation with particular reference to Procter and Gamble ltd. Nigeria. It examines the four main inventories that can be identify with manufacturing company which are Raw material, Work In Process (WIP), Maintenance or spare parts and Finished goods. This discussion will have its focus on the finished goods in the Warehouse since that is where Procter and Garmble ltd channel the Just In Time inventory system. This finding also identifies the causes of failure of JIT due to poor implementation. The resulted problems and challenges such as Wastage due to damages, obsolete and expired stock, pilfering and inaccurate stock count were also discussed. In conclusion findings has shown that to have a proper inventory management system in manufacturing company, JIT inevitable and must be fully implemented along the four main inventories in as much that the activities of one affect the other. To minimise wastage and other associated cost of inventory management, Re-engineering are one of suggested solution.

COMPANY DESCRIPTION.
Procter and Garmble ltd started operation in Nigeria as a trading company with the importation of consumer goods such as Ariel detergent, diapers for babies and sanitary pads. Due to growth, wide acceptability and demand for their product and also to serve their customer better, they embark in local production and become a manufacturing company in Nigeria in the late 19th century. They introduce additional product like Bonux detergent, safeguard toilet soap, all in difference sizes ranging from (30gm,90gm,250g,500gm, 1kg, 2kg ), Candies (Vicks Blue, Vicks lemon & Vicks Apple.), Oral B Toothpaste and toothbrush among others were also introduce. With more than 8 store keeping units( SKU) and over twenty-four brands, proper management of inventory become a challenge and with the existing Sage pastel (Accounting package.) which included Inventory module. the management of the company see JIT as the best solution.

INTRODUCTION
Inventory management is one of the most important, and at the same time most challenging jobs in any manufacturing business. All manufacturing units aim at one thing and that is to minimize the expenditure and costs related to ordering and carrying out inventory. The carrying out of inventory costs comprise warehouse costs i.e. rent for the storage facility where the inventory is placed, salaries of the employees who manage the warehouse, and certain financial costs that are incurred on the insurance of goods in the inventory and any possible damage to it. Bringing down these costs is an important part of inventory management and one of the systems in place for this is the JIT system. The Just-in-time (JIT) inventory strategy is an inventory management strategy that aims to have as much finished product or intermediate goods as required by a company at the right time, thus reducing inventory costs and wastes without negatively impacting customer supply (Slack, Chambers, & Johnston, 2007). JIT system is a computer based perpetual Inventory system that tracks and calculates availability, lead time, and usage to deliver the least amount of products needed "Just in Time" to...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Just in Time Inventory Management
  • Just in Time System Essay
  • Just-in-Time Inventory Management Essay
  • Just-In-Time Inventory System Research Paper
  • Inventory Management Essay
  • A Study Onrole of Just in Time Inventory Control System Essay
  • Just in Time Approach in Inventory Management Essay
  • Importance of Just-in-Time Inventory System Essay

Become a StudyMode Member

Sign Up - It's Free