Just - In - Time production system : TOYOTA

            What is exactly J.I.T? J.I.T. refers to the Just In Time. Nowadays, most of the company use J.I.T process. With J.I.T process, we can manage to cut the cost of the production and also can eliminate waste. However, J.I.T also includes some of systems for example Kanban system and also Kaizen system. JIT relies on other elements in the inventory chain as well.

        

       Toyota Motor Corporation’s vehicle production system is a way of ‘making things’ that is sometimes referred to as to as a ‘ lean manufacturing system’ or a ‘just in time (JIT) system’. And has come to be well known and studied worldwide. This production control system has been established based on many years of continuous improvements.

           

         JIT is Toyota’s manufacturing philosophy to minimize waste, and the JIT production system is a subsystem controlled by Kanban. Kanban card contain the part number, the part description, the type of container and various workstation information. A Kanban production control system uses simple, visual signals to control the movement of materials between work centers. The Kanban card is used to provide an easily understood, visual signal that a specific activity is required.

          

          Production quality products effiently through the complete elimination of waste, inconsistancies, and unresponable requirements on the production line. In order to deliver a vechicle ordered by a customer as quickly as possible, the vehicle is efficiently built within the shortest possible period of time.

Kanban production control system divides two main types. First is production kanban and second is withdrawal kanban. Production kanban signals the need to produce more parts. Each kanban is physically attached to a container. Withdrawal kanban signals the need to withdraw parts from one work center and deliver them to the next work center.

          Conclusion, JIT is very effective method to use in all production. However, Kanban and Kaizen system can make the work become smooth and clean. Besides, it also can fulfill customer requirement.

THE ADVANTAGES AND DISADVANTAGES OF JUST-IN-TIME

The purpose of  Just in time inventory system is one in which inventory levels are kept extremely low by only producing to specific customers orders, rather than to a forecast of what customers order might be. The key lean principles focus on people, postponement, efficiency, and the elimination of waste.  

 The advantages of just in time production is :
 - minimal amounts of inventory obsolescence.
 - Low inventory levels.
 - eliminate waste.
 - reduce setup time.

 There are also have some disadvantages of just in time production :
 - Excess demand
 - supply disruption
 - input price changes
 - may not be able immediately to get unexpected orders.

          There is an example of using the process of just in time is TOYOTA PRODUCTION SYSTEM(TPS) as a means of eliminating the seven waste. However it was not at the Ford Motor Company that Toyota representatives saw the JIT model in action. When Toyota toured plants in the United States in 1956, Ford had not yet fully implemented the JIT model. It was at Piggly Wiggly, the first self-services grocery chain, that Toyota representatives saw JIT demonstrated and that was the model they based their system on. Three of seven waste categories defined in Toyota Production System(TPS) is overproduction, waiting and excess inventory.

 The seven waste should be avoid :  
 - Overproduction.
 - Waiting.
 - Transportation.
 - Inappropriate processing.
 - excessive inventory.
 - unnecessary motion.
 - defects.

        The conclusion of JIT is an important operational system for manufacturing and supplying companies to adopt and implement. However, it is important to realize that significant competitive advantages can emerge for a firm that utilizes its JIT purchasing function effectively.

Logistics and Supply Chain of PORSCHE PANAMERA

Bismillahirrahmanirrahim

Assalamualaikum w.b.t

Today our group want to discuss the " Logistics , supply chain and Purchasing " based on the story of PORSCHE PANAMERA.

Porsche is headquartered in Zuffenhausen, a city district of Stuttgart, Baden-Wurttemberg and is owned by the Piech and Porsche  families. In July 2012, it was announced that Volkswagen AG was taking over the Porsche automotive company completely, which bears the same name, but is only a subsidiary of Porsche.




  Porsche Engineering Group (PEG) has for many years offered consultancy services to various other car manufacturers for example Audi, Mercedes,Subaru, Zastava, Automobiles and others have consulted Porsche Engineering Group for their cars or engines. The Lada Samara was partly developed by Porsche in 1984. Porsche Engineering Group also helped Harley-Davidson design the water-cooled engine and gearbox.

PORSCHE PANAMERA is the first Sport Car  who make four door. To make a PORSCHE car, it needs three different location at GERMANY.








1.  LEIPSIC,GERMANY

There are LEIPSIC, HANNOVER and STUTTGART. First thing to make a PORSCHE car, they made an engine first at STUTTGART.It is because to make an engine of the PORSCHE car, it take more time compare to the other parts.For the PORSCHE engine, it is not a common engine like the other car. PORSCHE engine is the turbo Engine. They make one engine for PORSCHE PANAMERA is in four weeks.Besides, they deliver forty times per day for the engine at the assembly part.They need 300 worker to make PANAMERA engine.


 2.HANNOVER,GERMANY

Next, The body PORSCHE car is make in a different place which is HANNOVER. First thing they do is to make a shape for the body cars. After that, they paint the body car based on customer demand. Then, they will check the car with the full attention either it is on customer demand or not. To make a body car, it takes only a week usually.However, The company receive 20 post PANAMERA body per days.They also use robot for paint the cars. Here, they have 24 different color to choose.Company will attach the small part just use by hand.They will use the machine when there are the large part that are going to attach. After finish that, they kept the body in warehouse  to get ready for delivery.


3.STUTTGARD,GERMANY

Last but not least is the manufacturing process. It is the last part where they assemble the whole thing such as engine and body part to join together to make a PORSCHE car.The manufacturing process take place at LEIPSIC. At LEIPSIC,they joint together all the component parts to make a complete PORSCHER car.

For the conclusion, PORSCHE car is the great car and it is already be avowed by all people in the world. Furthermore, it is possible when PORSCHE become the great car based on their performance.

ISSUES THAT MUST BE CONSIDERED IN BUYING DECISION

ISSUES THAT MUST BE CONSIDERED IN BUYING DECISION

     Buying is a part of purchasing activities. It is a tough tasks that must be done by a purchaser. As the decision maker, he must faces multiple goals in making the buying decision. The cost per unit, quality and lead time are some of the issues that a decision maker faces in making the buying decision. Usually, the purchasing decision must buy the right materials as acceptable cost and quality level within a reasonable lead time. So that, it is shown that become a purchaser, its a tough task that must be done.

     The first issue that must be considered in making buying decision is the cost. Cost is realy important in making buying decision. It is because, the cost per unit of material depends on the volume or amount purchased, the quality desired for the material and the desired lead time. The cost must be lower in order to gain profits. So that, to lower the cost the purchaser must procured in larger volume because it enables the firm to buy at discount. The discount will drive the material cost.

     The second issue that must be considered in making buying decision is the quality level. The quality level of material must meet the desired objectives as defined by the firm’s competitive prioritis. The lower the acceptable defect rate, the higher the quality level of material purchased. To achieve the quality goals, a firm must emphasizing the quality than the cost objectives. Six Sigma is the way to measure the quality. So that, firms must follow the Six Sigma in order to achieve the excellent quality.

     The last issue that must be considered in making buying decision is the lead time. The purchaser lead time will affect a firm’s flexibility and services to its own customers. A firm must shorter the lead time in order to get customer satisfaction. Shorter lead time can make the company responsive to external changes.

      For conclusion, there are three issues that must be considered in making buying decision. That are the cost, quality level and lead time. So that, as a purchaser, the three issues are necessary to considered in making the decision.

WHY PURCHASING MANAGEMENT TODAY MORE COMPLICATED COMPARED THE PAST ?

Bismillahirrahmanirahim ....


Assalamulaikum wbt ...

okay,today we are going to post the second post about the " Purchasing management Today more complicated compared the past? "

Do you know about the challenges in purchasing manager today?
If you don't know and don't ever think about it. just look here and read this.


Are you ready get a new information about it ? let go scroll down ....

Now,we're going to discuss SEVEN(7) purchasing challenges :

 1.  Increase in MATERIAL COST
  2.  Increase in TRANSPORTATION COST
  3.  Increase changing ECONOMY and POLITICAL environment
  4.  GLOBALIZATION
  5.  New INVENTORY concept
  6.  Safety of ENVIRONMENTAL issue
  7.  TECHNOLOGY requirement
 


First of all,it about the RAW MATERIALS. You know want is a raw materials ? raw material is  
  the basic material from which goods, finish goodsor intermediate materials are manufactured or made.
why the purchasing chalenges make effect to the raw material ? As you know the resources in our earth cannot be renew.That why,it effect to cost of the raw materials.For example of raw material is coal,oil,rubber



Second,the cost of TRANPORTATION. As you know transportation effect in purchasing challenges based on distance, type of transportation, load and so on.As we know the increase of petroleum's price,highway tol fees, road taxs make effect cost of transportation. So,transportation is very important in purchase the finish goods.



Third point in challenges of purchasing is economy and political environment. In economy environment, different currency is  big deal as we need to change, development of economy in another countries. In political issues is documentation, unstable political countries such as Egypt.


Globalization refer to processes of international integration arising from interchanges or world views, product, idea and other aspects of culture. Now many company want to expand their business to international to income more benefit in their company. So, Globalization is the factor of challenges to purchasing manager.



Furthermore,people like to have the product quickly.So,Just-In-Time(J.I.T) is new trend in new inventory concept.To be competitive in market.they must reduce the inventory.that why,company must to fulfill the customers' need. Some of the firms need to apply inventory as they must satisfy the customer requirement.



moreover,environmental issue is part of challenges,that purchasing manager should consider with it. This concern makes the purchasing management work hard to apply this concept to make sure they are creating a good relationship with the people and more Eco-friendly.


Last but not least,as the purchasing manager another effector their should take in is technology requirement. They must always make sure the technology should be chaseg time by time. It is the big part because customer always demand the latest technology requirement.



Well their are lot of challenges in purchasing that should be focus in order to fulfill customer requirement.If This challenge don't be consider. the failer be occur.


Please drop your comment if any idea.

The Logistics is about ...........

And we will gain profits ..............

THE IMPORTANCE OF PURCHASING IN AN ORGANIZATIONS

                 Purchasing is very important nowadays. Without purchasing in an organization, we cannot make a better and proper work. In definition, purchasing is known as a medium between the companies to buy a goods or services. Purchasing also is an activity of acquiring goods or services to accomplish the goals of an organization. So, based on the definition above we know that purchasing is essential in the organization. For example, the company needs a purchasing manager to buy raw materials. A purchasing manager will evaluate suppliers on the base of price, quality, service support, availability, reliability and selection. Then, they research the reputation and history of the suppliers and may advertise anticipated purchase actions in order to solicit bids. So that, the purchasing manager will give big advantages to the company in terms of save cost, increase profit and so on.

            There are many importance of purchasing in the organization. With the purchasing, the company can centralize or it also can be decentralized depend its own need.  

Centralized is main company must purchase the same product to the entire branch at the other country.

The importances of purchasing in the centralized company are:

                    I.            It can cut cost through purchasing department

                  II.            It also can make purchasing manager easy to purchase

                III.            Get quantity discount

Decentralized company is each department in a company buy goods on their own.

The importances of purchasing in decentralized company are:

                    I.            Cut transportation and warehouse costs

                  II.            Make employee more independent

                III.            Save time for purchasing manager

         So that, it is prove that purchasing are important nowadays. All of this are relating with purchasing function. Purchasing consists of many tasks within the business entity. The tasks includes of materials, supplies and services. Purchasing agent also will represent the company in negotiations with suppliers in order to perform duties, purchasing must be given authority when a purchasing manager is appointed. So, this is shown that purchasing are importance and will give a big impact or profits to an organizations. Without purchasing, an organizations can not run their business properly and difficult to gain profits.