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Complete 8 page APA formatted essay: OPERATION.Download file to see previous pages... "Just in Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by redu
Complete 8 page APA formatted essay: OPERATION.
Download file to see previous pages..."Just in Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs." (Wiki Encyclopedia, 2007). JIT is a division of Lean Manufacturing. It offers scope for reducing inventories and introducing ways and means to improve productivity by planning optimal use of resources by elimination of all activities that do not add value and/or are safety nets, maximum use of scarce resources like capacity, manpower and capital becomes achievable. (road.uww.edu, 2007) It also results in value addition for the customer, improved bottom line, elimination of wastage and enhanced productivity of employees (road.uww.edu, 2007). This is the ultimate objective of Lean Design.
In contrast, other methods try to automate current business process and while implementing, there is a risk of simply automating the waste. With them quality is an issue that is left for other standards like ISO etc.
Just in Time is also a simple method to implement as we will identify some of the main elements of it in our case study, it also maximizes the velocity of service and improves customer needs. For these reasons, Just in Time is now a widely adopted focusing philosophy for on customer value adding activities through eliminating wastes and striving towards continuous improvement (Wiki Encyclopedia, 2007). JIT can be applied to the service industry, like hospitals, as these too need to work on timelines and deliver value for money.
The elements in St James's new approach that could be seen as deriving from JIT and Lean principles of manufacturing
Presently at St James a system is offered that has some measures of savings as well as bringing about economies in workloads. The areas currently covered are purchases and admission procedures of one surgical ward.
For cost effective measures it has already adopted some lean technologies, specifically the Just in Time (JIT) system and some Kanban methods have been adopted to streamline supplies as per requirements.
1. Cost Reduction
A cross functional task force of personnel from medical and supply staff found that as many as 20 glove types were purchased for use by surgeons at a cost 1 per pair supplied by several suppliers. This was brought down to 20 pence per pair, by standardizing and buying fewer types and sourcing from one supplier who reduced prices due to higher quantities required. Likewise a single source was used for anesthetic items and these too could be bought for at lower cost. It was found that single sourcing coupled with volume purchases brought down the costs substantially. There was one more development. The supplier was happier to deliver small quantities against a bulk order. This resulted in low inventories and reduced wastage. This also made material handling a lot easier for both inward and outward movements.
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