IMPROVEMENT PROCESS ANALYSIS
The main objectives of JIT are obtaining low-cost high quality products and on-time production as well as eliminating waste and stagnant stock (Svensson, 2001). Even though most of JIT implementation has similar aim and purposes, the strategies involved may differ from industry to industry or company to company. Ford has smartly chosen the right methods and strategies by reducing the barriers in relation with its suppliers.
Through JIT, Ford is achieving the highest efficiency in car manufacturing industry. Its plant in Valencia has become the standard and being adopted in its other plants in many other countries. Apart from its tangible benefits such as saving on transport costs, stock/inventory costs, quicker manufacturing process and minimised risk/wastage, JIT will also bring immediate intangible benefits such as improved customer satisfaction through immediate responses and shorter timeframe to respond towards market trends.
The main objectives of JIT are obtaining low-cost high quality products and on-time production as well as eliminating waste and stagnant stock (Svensson, 2001). Even though most of JIT implementation has similar aim and purposes, the strategies involved may differ from industry to industry or company to company. Ford has smartly chosen the right methods and strategies by reducing the barriers in relation with its suppliers.
Through JIT, Ford is achieving the highest efficiency in car manufacturing industry. Its plant in Valencia has become the standard and being adopted in its other plants in many other countries. Apart from its tangible benefits such as saving on transport costs, stock/inventory costs, quicker manufacturing process and minimised risk/wastage, JIT will also bring immediate intangible benefits such as improved customer satisfaction through immediate responses and shorter timeframe to respond towards market trends.