JIT AT General Motors

S

sunandaC

Sunanda K. Chavan
General Motors


An example of the use of JIT in General Motors is given below.
General Motors (GM) in the USA has (approximately) 1700 suppliers who ship to 31 assembly plants scattered throughout the continental USA. These shipments total about 30 million metric tons per day and GM spends about 1,000 million dollars a year in transport costs on these shipments (1990 figures).


JIT implies frequent, small, shipments. When GM moved to JIT there were simply too many (lightly loaded) trucks attempting to deliver to each assembly plant. GM's solution to this problem was to introduce consolidation centres at which full truckloads were consolidated from supplier deliveries.
This obviously involved deciding how many consolidation centres to have, where they should be, their size (capacity) and which suppliers should ship to which consolidation centres (suppliers can also still ship direct to assembly plants).


As of 1990 some 20% by weight of shipments go through consolidation centres and about 98% of suppliers ship at least one item through a consolidation centre.
All this has been achieved without sacrificing the benefits of JIT.
 
Just in Time (JIT) Inventory Definition

JIT inventory is a strategy to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. In other words, JIT inventory refers to an inventory management system with objectives of having inventory readily available to meet demand, but not to a point of excess where you must stockpile extra products.
 
sunandaC said:
General Motors


An example of the use of JIT in General Motors is given below.
General Motors (GM) in the USA has (approximately) 1700 suppliers who ship to 31 assembly plants scattered throughout the continental USA. These shipments total about 30 million metric tons per day and GM spends about 1,000 million dollars a year in transport costs on these shipments (1990 figures).


JIT implies frequent, small, shipments. When GM moved to JIT there were simply too many (lightly loaded) trucks attempting to deliver to each assembly plant. GM's solution to this problem was to introduce consolidation centres at which full truckloads were consolidated from supplier deliveries.
This obviously involved deciding how many consolidation centres to have, where they should be, their size (capacity) and which suppliers should ship to which consolidation centres (suppliers can also still ship direct to assembly plants).


As of 1990 some 20% by weight of shipments go through consolidation centres and about 98% of suppliers ship at least one item through a consolidation centre.
All this has been achieved without sacrificing the benefits of JIT.
Click to expand...

Hey sunanda, thanks for explaining JIT in general motors. Well, JIT is the Just In Time which means availability of anything before its requirement or demand. Well, i have also got a document on General motors and would like to share it with you.
 

Attachments

jitendra05 said:
Hey sunanda, thanks for explaining JIT in general motors. Well, JIT is the Just In Time which means availability of anything before its requirement or demand. Well, i have also got a document on General motors and would like to share it with you.
Click to expand...

I am not able to get access to your PDF file!Can you please mail it to me?
 
You must log in or register to reply here.
Back
Top