Business Process Management (BPM) is a method of controlling the processes in an organisation . BPM is utilised to ensure that an organisation is run as effective and efficient as possible with regards to costs profitability and production. BPM should be continuously monitored on an on-going basis. Methods of BPM include Total Quality Management (TQM), Cost of Quality Report (COQ) and Just-In-Time (JIT).
Just-In-Time (JIT) manufacturing is producing the required items, of the right quality, and in the exact quantities, precisely as they are needed (Minahan, 1997) . JIT “is a management philosophy focused on how the supply chain fits into the manufacturing process” (Greb, 2009) . JIT manufacturing focuses on reducing inventory held and the costs associated with holding inventory and increasing the quality of the products. JIT relies on close links between the manufacturer and its suppliers and also assumes that there will not be an unforeseen large increase in demand. Schonberger writes that “ The characteristics of JIT purchasing are few suppliers, nearby suppliers, frequent deliveries in small lot quantities, long term contract agreements and close relationships between buyers and suppliers” (Schonberger, 1983) Companies such as Dell, Harley Davidson, Toyota, Xerox and Hewlett Packard have all implemented some form of JIT.
JIT can result in lower costs associated with holding stock, an increase in floor space available, an increase in quality and reduction in deliver time to customers, which may lead to an increased level of customer satisfaction which in turn will lead to higher orders and a higher demand for products. However JIT is not suitable for all firms or industries and should only be implemented after serious considera...
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The basic premise for JIT is fairly simple: a company only produces an item when there is a need, or just-in-time for a company or individual to purchase it (Manoocherhi, 1988). The theory of JIT also accepts that there may be a need for an item at another work station and this would also create the need for production. Rather than utilizing the common practice of mass production and attempting to sell and distribute the products after they are created, JIT waits until there is a defined need that must be met. By doing this, JIT systems allow companies to decrease the level of production, decrease the necessary manpower hours utilized in mass production modes of supply, and eliminates the waste inherent in over-production. These techniques are especially effective for small companies, who are far less able to absorb the impact of unsold products. JIT has been shown to significantly impact reductions in overhead costs that reduce re-investments, and encourage stabilizing business practices(Manoocherhi, 1988).
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Business Process Management (BPM) is considered as the umbrella of our research. This chapter introduces an overview of BPM which offers a set of diversity values for organizations. Figure 2.1 represents the different areas that we covered in this chapter.
“Must have JIT experience”, “What?” I did not know what it was, or meant. Just In Time (JIT) is the production process rooted on the basis of the system working just when and as it is needed, while attempting to eliminate waste. JIT is designed to keep inventory costs down, by eliminating large inventory. The concept is to have manufacturing parts arrive just in time to be picked then assembled, and arrive just in time for the customer’s use.