Production & Operation management Practical study History Just in time Advantages and disadvantages Elements of JIT Waste

material SWOT analysis Recommendations Conclusion

Managing people and machinery in converting materials and resources into finished goods and services
Its deals with processes that produce goods and services that people use everyday.

Key OM Concepts

Efficiency - Doing something at the lowest possible cost Effectiveness - Doing the right things to create the most value for the organization Value - Quality divided by price

Production System

CASE STUDY JUST IN TIME STRATEGY AT COCA-COLA

VISION
People: Be a great place to work where people are inspired to be the best they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities Productivity: Be a highly effective, lean and fast-moving organization.

HISTORY
Established: 1886 Ranking: We own 4 of the worlds top 5 nonalcoholic sparkling beverage brands: CocaCola, Diet Coke, Sprite and Fanta. Operational Reach: 200+ countries Consumer Servings (per day): 1.5 billion.

Slogans
1963 Things Go Better With Coke.
1970 Its the Real Thing 1975 Look Up America

1979 Have a Coke and a Smile

1982 Coke Is It! 1987 You Cant Beat the Real Thing 1993 Always Coca-Cola 2012 Burrrrrrrrrrrrrrrrr

Major Competitors Of Coca Cola

DEFINITION
Just-in-time

(JIT) is an inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.
JIT production is the system that enables a firm to produce only what is required, in the correct quantity and at the correct time.

The technique was first used by the COCO COLA

Company.

The just-in-time inventory system focus is having the right material, at the right time, at the right place, and in the exact amount.

BENEFITS OF JIT

PRODUCT COST: The cost of production is greatly reduced due to reduction of manufacturing cycle time, reduction of wastes & elimination of non-value added operations. QUALITY: Quality is improved because of continuous quality improvement programmes.

DESIGN:: Due to quick response of technical change, alternative designs can be quickly brought on the shop floor.
PRODUCTIVITY IMPROVEMENT: Under JIT System Suppliers Supplies High Quality Materials And The Use Of Automated Robotics With Preventive Intensive Maintenance Programmes, Which Prevents Machinery Breakdowns Etc. Ensures High & Perfect Product Quality.

DISADVANTAGES OF JIT

JIT REQUIRES SPECIAL TRAININGS WITH Reorganizations of policies and procedure. RESISTANCE TO CHANGE: JIT involves a change through out the whole organizations, but human nature resists change.

JIT REQUIRES MULTI-SKILLED WORKERS With flexibility to change. And it is very hard to find those workers.

Time consuming and Wastages in product

INTRODUCTORY QUOTATION
Waste is anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product.
John Pemberton Founder, Coke

How can production can be Waste?

Overproduction Waiting Transportation Inefficient processing Product defects

Overproduction is the exact opposite of Just-in-time production

JIT ensure that there is no waste from overproduction

OVERPRODUCTION

it means produce more of something than is wanted or needed

Just-in-Time Success Factors

Suppliers

Employee Empowerment

Layout

Quality

JIT

Inventory

Preventive Maintenance

Scheduling

Lowering Inventory Reduces Waste

Work in process inventory level (hides problems)

Unreliable Vendors

Scrap

Capacity Imbalances

Lowering Inventory Reduces Waste

Reducing inventory reveals problems so they can be solved.

Unreliable Vendors

WIP Scrap

Capacity Imbalances

Lowering Inventory Reduces Waste

Reducing inventory reveals problems so they can be solved.

Unreliable Vendors

Scrap

WIP

Capacity Imbalances

STRENGTHS
.Global presence Word leading brand Strong financial background Strong relations with the sports world. Brand awareness Logo famous Strong marketing and advertising

WEAKNESS
Negative publicity Low profits in strong areas Decline in cash flow Supply is restricted. Lack of popularity of many Coca-Cola brands. Health issues.

OPPORTUNITIES
Diversification of other business like food and snacks. Aggressive acquisitions Increase in demand for bottled water

THREATS
Intense competition Slowdown in rural Demand Negative health effect Commodity price growth.

RECOMMENDATIONS
For the products like diet coke, pulpy orange and kinlely soda it better to stop manufacturing these products Invest profits for future growth and for earning more of market share and profits

Invest heavily into products like fanta and sprite in order to push the products to star status.
The organization has to carefully study external environment moves and accordingly devise strategies to gain competitive advantage

CONCLUSION
JUST-IN-TIME METHOD IS A PHILOSOPHY, WHICH BELIEVES THAT WASTE CAN BE ELIMINATED BY CUTTING UNNECESSARY INVENTORY AND REMOVING NON VALUEADDED ACTIVITIES IN OPERATIONS. THE GOALS ARE TO PRODUCE GOODS AND SERVICES AS SPECIFICATIONS AND CONTINUOUS IMPROVEMENT THROUGH VALUE ADDITIONS.

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