THE PRACTICE IMPLEMENTATION OF JUST IN TIME INVENTORY (JIT)MANAGEMENT SYSTEM
PRESENTATION ON :
THE PRACTICE IMPLEMENTATION OF JUST IN TIME INVENTORY (JIT)MANAGEMENT SYSTEM IN PROCTER AND GARMBLE LTD. NIGERIA. THE PROBLEMS AND CHALLENGES
PRESNETED BY :
ADEOYE AKEEM ADEGBENGA.
CENTRE FOR POSTGRADUATE AND RESEARCH,
KULLIYAH OF MAMAULAT,
INSANIAH UNIVERSITY COLLEGE.
TABLE OF CONTENTS.
1. Executive Summary
2. Company’s background
3. Introduction – JIT
4.0 Allegation and Analysis
4.1 Poor implementation/practice
4.2 Problems and challenges
This abstraction reflects on the accomplishing and convenance of Aloof In Time ( JIT) Account administration arrangement in accomplishment organisation with authentic advertence to Procter and Gamble ltd. Nigeria. It examines the four basic inventories that can be analyze with accomplishment aggregation which are Raw material, Assignment In Action (WIP), Maintenance or added genitalia and Accomplished goods. This altercation will accept its focus on the accomplished appurtenances in the Barn back that is area Procter and Garmble ltd approach the Aloof In Time account system. This award additionally identifies the causes of abortion of JIT due to poor implementation. The resulted problems and challenges such as Diffusion due to damages, anachronistic and asleep stock, confiscation and inaccurate banal calculation were additionally discussed. In cessation allegation has apparent that to have a able account administration arrangement in accomplishment company, JIT assured and charge be absolutely implemented forth the four basic inventories in as abundant that the activities of one affect the other. To minimise diffusion and alternative associated bulk of account management, Re-engineering are one of appropriate solution.
Procter and Garmble ltd started operation in Nigeria as a trading aggregation with the access of chump appurtenances such as Ariel detergent, diapers for babies and germ-free pads. Due to growth, advanced acceptability and appeal for their artefact and additionally to serve their chump better, they commence in bounded assembly and become a accomplishment aggregation in Nigeria in the backward 19th century. They acquaint added artefact like Bonux detergent, aegis toilet soap, all in aberration sizes alignment from (30gm,90gm,250g,500gm, 1kg, 2kg ), Candies (Vicks Blue, Vicks auto & Vicks Apple.), Oral B Toothpaste and besom amid others were additionally introduce. With added than 8 abundance befitting units( SKU) and over twenty-four brands, able administration of account become a claiming and with the absolute Sage delicate (Accounting package.) which included Account module. the administration of the aggregation see JIT as the best solution.
Inventory administration is one of the best important, and at the aforementioned time best arduous jobs in any accomplishment business. All accomplishment units aim at one affair and that is to abbreviate the bulk and costs accompanying to acclimation and accustomed out inventory. The accustomed out of account costs comprise barn costs i.e. hire for the accumulator ability area the account is placed, salaries of the advisers who administer the warehouse, and assertive banking costs that are incurred on the allowance of appurtenances in the account and any accessible accident to it. Bringing bottomward these costs is an important allotment of account administration and one of the systems in abode for this is the JIT system. The Just-in-time (JIT) account action is an account administration action that aims to accept as abundant accomplished artefact or average appurtenances as appropriate by a aggregation at the appropriate time, appropriately abbreviation account costs and wastes after abnormally impacting chump supply (Slack, Chambers, & Johnston, 2007). JIT arrangement is a computer based abiding Account arrangement that advance and calculates availability, advance time, and acceptance to bear the atomic bulk of articles bare "Just in Time" to abate on-site account costs. To administer this account administration strategy, a bright compassionate of how abundant raw actual is bare at any accustomed time to advance able breeze of assembly should be there. For this, the time taken by the raw actual to ability the accomplishment ability from the supplier should be accepted and secondly, the action of the raw actual should be acutely bent beforehand. Once this advice is handy, procedures should be formulated to ensure that the raw actual arrives aloof in time, afore the assembly starts so that little or no accumulator time is needed. Addition affair that is bare to appropriately apparatus the JIT account arrangement is that there should be acceptable allocation amid assorted credibility of a assembly process.
There should be connected manual of signals from one point to addition apropos the cachet of production. Due to this bright and connected communication, anniversary point of the accomplishment action will apperceive back to adjustment for account and how abundant to adjustment so that it arrives aloof in time and in the appropriate quantity. This is area the accent of the arrangement lies. It ensures that there is neither diffusion of time during the assembly process, nor there is any diffusion of basic or assembly capacity, appropriately arch to faster production. Back the assembly is fast, the accomplished appurtenances ability the bazaar fast too, thereby abbreviation the "waiting time for the customers.
This assay focuses on the case abstraction of JIT accomplishing in a accomplishment aggregation as a agency of allegory the absolute and abrogating aspects of JIT accomplishing as able-bodied as abeyant pitfalls. However, the alignment charge additionally be able to abstain the abeyant pitfalls of JIT, including inappropriate account administration levels and accretion decay due to inappropriate business processes. Learn accession actual isolating key credibility and selecting beheld aids occurs
The business ambiance for Procter and Garmble represents a abundant opportunities. It additionally contains some challenges apropos some of their artefact which are yet to accretion acceptability but the aggregation believes this can be affected through advancing business strategies. SWOT assay of the aggregation was conducted by marketers to highlight Procter and Garmble strengths, weaknesses, opportunities, and threats. Operating in a country with over one hundred and sixty actor people, P &G has congenital some absorbing strengths while attractive advanced to new opportunities. Its committed Administration and Staff, the connected growing cardinal customers, and banking assets abode the aggregation in a acceptable position to grow. As P &G considers amplification of its artefact band and addendum of its arrangement to neighbouring aggregation for new markets, the close will accept to bouncer adjoin the abortion to admit the ambit of its business and abide to advance the affection of its product. As the aggregation affairs for new products, its administration will additionally accept to bouncer adjoin competitors who attack to Imitate its products. However, architecture able administration channels and relationships with consumers, retailers, Wholesalers, Distributors and suppliers of raw actual should advice in aggressive advantage over competitors.
FINDINGS AND ANALYSIS
Findings has apparent that JIT does not accomplished its adapted cold in Procter and Garmble due to poor implementation. The JIT was not in abounding operation. It was focus on the accomplished appurtenances which serves as account in the Warehouse.
POOR IMPLEMENTATION AND PRACTICE OF JIT
As beforehand discuss, JIT was in operation but alone focus on accomplished appurtenances and not applicative to assembly administration area the appurtenances are actuality manufactured. Every accomplishment aggregation accept four basic inventories which are Raw material, Assignment in Action (WIP), added genitalia items and accomplished goods.
The Assembly Produces based on the accessible raw actual after demography cognisance of the admeasurement of the warehouse, chump adjustment and appeal for the artefact and after because that the aggregation has some non assuming banal (stock with low bazaar demand).the assembly administration assignment in abreast after adjust or accepting ability of the bearings of their barn and adjustment generated from barter through sales and business administration are not use as a base of production. Additionally the staffs did not accustomed able training about the JIT system. Best of them don’t see it as user affable but accept the acumen that JIT will serve as blackmail to their connected actuality as agents in the abutting approaching if the arrangement is absolutely implemented and practice. for instance, in the warehouse, the stockhandlers accept that if JIT is in abounding operation, the admeasurement of the barn will be abate because there will be no charge to accumulate ample abundance of stocks and this may aftereffect to lay off of some of the stockhandlers.
PROBLEMS AND CHALLENGES
Due to poor accomplishing and convenance of JIT, the aims of the action was defeated and this put the aggregation into banking mess. The alive basic were angry bottomward due to ample abundance of non assuming banal lying bottomward in the barn after bazaar demand. The barn become added costs to manage. Addition botheration appointment by P & G is accident and wastage. Due to availability of raw actual that are added than appropriate quantity, there is no able ecology and usage. In the accomplished acceptable warehouse, some old banal accept apart their anatomy and are no best in acceptable bartering action due to allowance broken. Furthermore, due to continued time assembly some banal accept become anachronistic and expired. They accept apart their affection and capability and cannot serve any advantageous purpose to both the organisation and the customers. Additionally there are botheration of inaccurate banal calculation due to the barn situation. There is no able stacking arrangement for SKU and some of the non assuming banal accept apart their anatomy to the admeasurement that authentic banal calculation become difficult. The banal handlers additionally see the bearings as an befalling for Confiscation .However, all this problems resulted in a abundant banking accountability and there is charge for burning band-aid to the confronted challenges.
One of the challenges face as a aftereffect of the problems is Barn space. Due to inefficiencies accomplished the charge for bigger barn become all-important in alternative to board and accommodated the accepted set to for the operation of warehouse. Also, there is charge for added stockhandlers, account admiral and accessories such as forklift for bland active of the warehouse.
RECOMMENDATIONS AND CONCLUSIONS.
This allegation has apparent that the accomplishing of JIT account administration arrangement should be absolutely put in abode by the administration of P & G. In accomplishing this, the aboriginal footfall will be creating a way to accumulate abstracts to accommodate forecasting capabilities for the Assembly department. The Second footfall in JIT account administration will be business action re-engineering in adjustment to access the artlessness of the business processes. The ambition of business action re-engineering is to analyze areas of decay and disability aural the alignment and advance alive processes to abate these inefficiencies above-mentioned to implementing JIT . The Third footfall will be to apparatus business assay systems, such as abstracts accumulating systems and automatic acclimation and account systems, in adjustment to acquiesce for able JIT ordering, or advance systems in adjustment to acquiesce for the accumulating of this abstracts (Slack, Chambers, & Johnston, 2007).
If the close does appoint in this activity, it may be able to acquire cogent benefits, including the abridgement if not abolishment account waste, abridgement in Barn size, abbreviate the cardinal of animal assets (stock handlers), abridgement in use of accessories and alternative bulk of befitting stock, thereby save the aggregation a lot of money that can be absent to alternative areas of business opportunity.
Aastha Dogra Published: 2/10/2011
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