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Essay / Research Paper Abstract
A 4 page paper answering 3 questions about JIT: how it minimizes warehouse costs; how long-term storage can result in diminished quality; and how Chrysler managed the JIT problems of parts delivery immediately after the terrorist attacks of 9/11. Bibliography lists 4 sources.
Page Count:
4 pages (~225 words per page)
File: CC6_KSopsMgmtJIT.rtf
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Unformatted sample text from the term paper:
When management is able to achieve optimum JIT practice, there is no need for a warehouse. If there is no warehouse, then obviously there are no warehousing costs.
It is rare that any organization making or dealing in tangible goods operates with no inventory at all, however. Many businesses will find that they need at least some
warehouse space, but JIT prevents them from needing a great deal of it. In the facility operating under JIT, finished goods leave the
last station of assembly to go directly to shipping. The goods are not shipped to a company-owned warehouse, but rather to customers who are buying or have bought the
product. Dell perfected the model when it developed its JIT manufacturing process. Dell did not produce computers just to have them, on the chance that individuals would call
the company to buy them (Burrows and Sager, 1999). Construction of a computer occurred in response to an order. When that order was from any source other than
a government, the order also was paid well before Dell began constructing order computers. Dell was able to take JIT one step further. Not only did it not
warehouse any of its products, it also built a high percentage of its computers with customers funds rather than its own. Parts and
components generally are stored on the production floor at or near the stations where they are used, thereby reducing the need for temporary warehousing within the production facility. Floor
space dedicated to parts storage is more accurately costed as production space. The bottom line when operating according to JIT is that if
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