Just-in-Time (JIT) – Introduction Just-in-Time (JIT) is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing organisations. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays. Taiichi Ohno is frequently referred to as the father of JIT. Toyota was able to meet the increasing challenges for survival through an approach that focused on people, plants and systems. Toyota realized that JIT would only be successful if every individual within the organisation was involved and committed to it, if the plant and processes were arranged for maximum output and efficiency, and if quality and production programs were scheduled to meet demands exactly. Just-in-Time(JIT) technique tries to ensure that there are no zero inventories, and goods are produced or ordered only when they are needed. Hence the name, Continue reading
Operations Management Concepts
Plant Layouts – Definition and Objectives
Plant layout means the disposition of the various facilities (equipment’s, material, manpower etc.) within the areas of the site selected. Plant layout begins with the design of the factory building and goes up to the location and movement of work. All the facilities like equipment, raw material, machinery, tools, fixtures, workers etc. are given a proper place. Some definitions of Plant Layout are; In the words of James Lundy, “It identically involves the allocation of space and the arrangement of equipment in such a manner that overall cost are minimized”. According to MoNaughton Waynel, “A good layout results in comforts, convenience, appearance, safety and profit. A poor layout results in congestion, waste, frustration and inefficiency”. According to Andrew Greasly (2007), the layout of a plant or facility is concerned with the physical placement of resources such as equipment and storage facilities, which should be designed to facilitate the efficient Continue reading
Business Process Reengineering (BPR) and Total Quality Management (TQM)
Business Process Reengineering (BPR) Business process can be defined as a set of logically related tasks performed to achieve a defined business outcome. It is a structured, measured set of activities designed to produce a specified output for a particular customer or market. Improving business processes is important for businesses to stay ahead of competition in today’s marketplace. Over the last 10 to 15 years, companies have been forced to improve their business processes because customers are demanding better products and services. Many companies begin business process improvement with a continuous improvement model. The Business Process Reengineering (BPR) methodology comprises of developing business processes are simplified rather than being made more complex. Job descriptions expand and become multi-dimensional – people perform a broader range of tasks. People within the organization become empowered as opposed to being controlled. The emphasis moves away from the individual and towards the team’s achievements. The Continue reading
Quality Circles – Definition, Structure and Implimentation
It is now an accepted fact that in today’s fiercely competitive world, individual efforts, however brilliant, cannot be a substitute for teamwork. Modern organizations have to heavily depend on various types of teams to be effective and efficient. Japan is a pioneer in this team concept and has shown the world how an innovative concept like “Quality Circles” draws involvement of employees at all levels in solving work related problems and achieve continuous improvement in every area of work. Japanese organizations give a very large credit to this concept for their undisputed world leadership in quality and productivity. What is “Quality Circle”? Quality Circle is a voluntary association of a group of persons working in same or similar type of job at the same work area who meet regularly one hour a week during their normal working time to discuss about their work related problems and arrive at a Continue reading
Role and Importance of Operations Management in an Organization
Operations Management is very important for managing large firms and running them successfully. Operation management is mainly related to production of goods and services in an organisation. The main purpose of the operations management is to run the business operations successfully, smoothly and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, labour to produce maximum output like products, goods and services. Operations Management is very crucial factor in order to increase company’s profit. Operations management is not only responsible for producing goods but also take control of distribution of services. Operations management plays a very crucial role in organisations as they produce professional managers which are capable of achieving organisation’s strategic goals in a defined period of time. Operations management is the heart of any organization as it controls the whole Continue reading
Inventory Management Techniques
The term inventory derives from the French word inventaire and the Latin word inventariom which simply means a list of things which are found. The term inventory includes materials which are in raw form, or are in process, in the finished packaging, spares and the others which are stocked in order to meet all the unexpected demands or distribution in the future. This term usually refers to the stock at hand at a particular period of time of all those materials which are in raw form, those goods which are in progress of manufacture, all the finished products, merchandise purchased products for resale of those products, tangible products which can be seen, touched, measured or are countable. In a connection with the financial statements and records of accounting, the reference may be to the amount assigned to the stock or the pile of goods owned by an enterprise at a Continue reading