Ford Company JIT Implementation and Management Operations

The main focus of this research paper is to investigate on the implementation processes of the JIT (Just in Time) approach in the Ford Company due to its recent introduction of its brand new KA vehicle. Specifically the most fascinating component in the automotive industry when many firms are focused on manufacturing processes which have been incorporated not only in the industrial sector but also within their respective working stations.

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FORD COMPANY JIT IMPLEMENTATION AND MANAGEMENT OPERATIONS
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I. Executive Summary
The main focus of this research paper is to investigate on the implementation processes of the
JIT (Just in Time) approach in the Ford Company due to its recent introduction of its brand new
KA vehicle. Specifically the most fascinating component in the automotive industry when many
firms are focused on manufacturing processes which have been incorporated not only in the
industrial sector but also within their respective working stations. The JIT concept has been
spread in regions such as Spain and Valencia, which harbor Ford firms. Additionally the paper is
aimed at explaining how firms can collaborate in harmony and using synchronized schemes in
order to attain optimistic production objectives of the JIT with the aim of achieving excellent
commodities over a limited period of time (Alcaraz and Maldonado, 2015). With maximum
attention during the preparation process, sufficient extraction methods, consumer orientation, and
cost-benefit evaluation, which are aligned as essential factors, included in the Just in Time
approach.
With immense market rivalry it causes most firms incorporate the JIT strategy in their daily
business processes. Most American producers are thrashing about increasing the marketing
deficits and other outsourced procedures, with the great rivals in the marketplace emanating,
with the aid of greater production tactics in resemblance of JIT with the incorporation of
incessant processes. Even though most advocates have stated the merits achieved while using the
JIT strategy, thus the execution process of the approach in American firms is increasingly being
conventional (Chen and Wang, 2018). According to scientific analysis it is postulated that

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enacting quality management practices and improved garbage minimization processes of the JIT
strategy always increases the performance of the company.
Table of Contents
I. Executive Summary........................................................................................................2
II. Introduction.....................................................................................................................3
III. Main Body.......................................................................................................................4
IV. Benefits/Costs of JIT in a production strategy at FORD Motors....................................4
V. Effect of JIT with its introduction...................................................................................6
VI. Issues and problems experienced with the implementation of JIT into FORD business 8
VII..........................Factors within the JIT system that affect supplier and inventory control.
.......................................................................................................................................14
VIII........................................................................................Recommendations and Conclusion
.......................................................................................................................................15

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II. Introduction
According to scientific study JIT (Just in Time) is a philosophical term which is focused
on eradicating various sources of industrial wastes through the production of the required parts
within the stated time and place. The main objectives of the JIT systems are mainly to increase
profits and company’s investment process through minimizing various inventory channels,
plummeting variability, increasing the quality of a product, and lastly reducing product cots.
Within the JIT systems, the unused opportunities are utilized during the buffer accounts which
are used in evading certain risks that would emanate. JIT approach is highly applicable in the
production sector involving frequent manufacture of similar product over a long period of time.
Thus the main brought about by the JIT is to institute various flow procedures through the
linkage of different plant for evenness (Dinsdale and Bennett, 2015). Additionally it aids in
facilitating the flow of items all the way through the manufacturing process familiar to one used
in the assembly processes. In order to achieve all these further efforts have been initiated in order
to achieve the objectives of motivating these lines near the zero value which enables
achievement of the stated lot size per unit.
JIT’s objectives are reducing the occurrences of the non-valued operations and the stagnant
inventories within the production lines. As a result it will lead to reduced throughput duration,
effective release execution process, use of advanced tools, minimal usage of space, higher profit
gain, and low expenses rates. Just in Time approach was designed with the aim of achieving
every consumer’s needs within the stated timeline without any inconveniences such as delays.
Therefore, in the past years, JIT was used by industries in order to meet the customer’s stated
timeline rather than the reduction of production wastes (Green et al., 2014). Just in Time strategy

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is also referred to as the Lean production/Stockless production due to the fact that the core reason
following a fruitful realization of the JIT approach is minimizing the inventory channels within
several centers within the production stages to a complete least amount. Thus it demands
effective management amid these centers so that each respective plant will only generate the
stated volume required by the subsequent plant.
III. Main Body
IV. Benefits/Costs of JIT in a production strategy at FORD Motors
JIT’s aims at acquiring high valued commodities and timely production process and also getting
rid of various sluggish stocks and wastes in the production process. Despite the fact that various
JIT execution processes comprise of comparable objectives and principles, various additionally
techniques used can be at variance depending of the type of industry operating from. Ford
Motors has effectively implemented the JIT approach which enables the company select
effective methods and techniques which aid it in minimizing various obstructions within the
supply chain. With the help of JIT, Ford is able to attain higher efficiency levels within the
automotive industry.
It comprises of different firms in Valencia which has instituted the use of JIT which other sub-
branches are also seeking to implement (Jadhav, Mantha and Rane, 2015). Aside from other
substantial merits mentioned in these papers, with the use of JIT approaches in the
manufacturing process it will increase customer satisfaction rates by providing abrupt replies and
reduced time limits in taking action of the marketplace development. Despite the fact that there
are not information explaining about JIT strategy benefits, still an evaluation of the Ford Motors

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helps in acquiring substantial benefits and recover the initial investment in no time. The below
table exhibits the benefits and cost achieved by Ford Motors in using JIT strategy, they include:
Costs Benefits
 Extending outsourcing (losing control)
 $500 million pilot plan and analysis
 Building aerial tunnels
 Setup Direct Automated Delivery DAD
 $16 million delivery system
 Less handling = less damages / costs
 Less conventional transport dependent
 Time saving
 Manufacturing seamless integration
 Further interest from more suppliers
 Saving $6+ million per year on transport
 25% shorter time production time needed
 Accuracy of production on plan
 Speed-up production process 8 weeks
 Smaller number or manufacturing parts
 Concentrating on core business functions
V. Effect of JIT with its introduction
Talking of the JIT approach, you may question yourself of the outrageous firms that has been
successful in using the type of technique. Thus the most effective answer is Ford Motors. Not
exclusively did Ford Motors exploit the JIT strategy but also obtained huge advantages within
the company’s daily operations. The term “Just in Time” was acquired with the manufacturing
schemes and activities instituted by Ford Company which exhibits effectual manufacturing
processes along with the production of higher quality products and cheap products (Jadhav,

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Mantha and Rane, 2014). Due to this fact it is deduced that these systems are effective and abide
by customer necessities. The abilities of the Ford Company are shown below. Therefore JIT
effects on Ford productions process is also shown below:
1. Standardized work
 Manufacturing Cells
 Manufacturing Lines
 Facility Layout
 Technology Development
 Simulation of processes and systems
2. Quality Improvement
 In Process Inspection
 Experimental Design
 Process Development
3. Continuous Improvement
For Instance:
The production process of Ford Company involves the routing of the commodity within the
whole plant and thus directed to other plants where the work is now ready for processing. Putting
into operation the production cells normally augments the company income radically while
minimizing the time cycle by 50% (Mirzoev & Brockman, 2013). Thus the price incurred during
the structuring and execution process of always gained during the initial year of inventory
reserves. The papers thus has highlighted various advantages acquired through the assembling of

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various processes and events and also analyzes various simulations which aid in structuring and
forecasting the trend noticed before the execution process thus reducing the risk incurred by the
firm.
According to Eldenburg and Wolcott (2009), there is an improvement in profit and the reduction
of time cycle of the production cells and the simulations. The main focus of the analysis was to
bring forward how companies should utilize the JIT approach without incurring any implications
in the manufacturing process. His strategy was effective for manufacturing units in the
implementation of waste disposal, which is clearly identified by the Ford Company (Phogat and
Gupta, 2017). It is thus postulated that the JIT approach is much effective compared to the
traditional productions approaches used initially. Hoskin’s theory was helpful to many
manufacturing since they were able to identify the suitable position of commencing the
execution process, which required critical evaluation of various performance based operations.
VI. Issues and problems experienced with the implementation of JIT into FORD
business
There are many issues and problems experienced with the use of the JIT approach in Ford
Motors. The institution of the JIT approach in the automotive industry is dissimilar to the
manufacturing industry as a result of its features. This huge disparity between these two
industries is due to that fact that there are different production levels with higher intricacy and
vagueness in the automotive industry. There exists vast number of reasons as to why there are
vagueness and multi-faceted concepts in the automotive industry (Shnaiderman & Ben-Baruch,
2016). There are many individual in the automotive industry comprising people with extensive

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skills and knowledge. Additionally, prospective partners in the automated industries consist of
their own aims and goals they ought to achieve within a specified duration. Thus, such
circumstance becomes very daunting for one participant’s action, thought, and personality would
bring significant impact towards the final scheme. Aside from the number of player in the
automotive industry performance, inadequacy of proper consistency, number parts, and other
additional limiting features create difficulty in the productions process of the automobile during
the production process.
How might this concept work in automotive?
As specified before in this part, the automotive advancement is an intricate errand. Hence, it
must be efficient by the administration with the end goal to accomplish the most extreme
execution in the task. In any case, the all-around organized timetable given by the administration
isn't just the one key factor of task effective. The other party should remain on their piece of the
calendar with the end goal to have a smooth work process and limit the issues amid the entire
procedure of car venture. In actuality, it is uncommon that the undertakings perform decisively to
their unique timetable (Singh, 2010). This circumstance occurred because of changes on inside
and outside variables identified with car advancement, for example, business conditions change,
conveyances slip; a plan requires amendment, and so forth. The progressions made by the
gatherings may not affect the end dates if the first calendar has adequate slack in the affected
exercises. The circumstance will be distinctive contrasted with the car venture which is the
calendar has a practically no slack. The players are influenced to make it up in quickened
generation. Actually, this circumstance may made postpone car venture which is could bring

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misuse of times, cash, vitality, labor and so on. With the end goal to execute the utilization of
JIT, the need goal of this application is to dispense with or limited the variety and wastage.
In reference to the facts illustrates above, is JIT implementation on automotive possible?
Generally, the automotive sector is regarded as the third company in terms of danger, demand
and dirt. This analysis will deal with the ‘dirty’ part since this item significantly relates with the
JIT’s philosophy (Sukarma, 2014). For instance, in 1998, the agency on environmental
protection in the United States projected that approximately 136M tons of building-concerned
wastes are produced in USA, which represent 25%-40% of the country’s solid stream of waste.
According to an update given in 2003, there was an increase to approximately 164,000M tons
years, whereby 9% is summed as automotive wastes, 38% as renewal wastes and 5% as the
destruction debris (River and Mojica, 2014). The situation indicates an excessive increase of
automotive waste over a particular timeframe. However, the figures are in the United States only,
hence signifying its influence to other nations too.
Is it possible to imagine about the affordability of our land for automotive wastes?
Automotive waste disposal requires an extensive land scale even though the world faces a major
shortage of land to meet the demands of agriculture, accommodation, education, manufacturing
among other human necessities. C&D disposal of wastes triggers an arrangement of antagonistic
properties that are not ostensible to building competencies (Ballou, 2007). These comprise of
wasted resources, diminishing of fundamental properties, generation of the green energy and
other ecological stressors connected to the production of novel materials other that utilizing the
present materials. The amount of C&D landfills is diminishing hence implying that options for

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disposal will be fewer, hauling will be greater and the consumption of fuel and motor emissions
will increase (Danese, Romano, & Bortolotti, 2012). Closing, capping, landfills monitoring and
cleansing of contaminated or leaking landfills consumes public resources. Up to that juncture, it
is clear that JIT implementation in the automotive sector may seem unclear since the application
of different methodologies taken from other companies may be implemented in the automotive
firm.
The automotive sector is uncertain and complex hence requiring drastic enhancement is different
aspects like, party coordination, control of waste products, and planned system of management
among other (Alcaraz, and Maldonado, 2015). The analysis indicated above related to waste
materials and how it is categorically adverse according to the selection priority of JIT objectives
and application. The FORD’s automotive process plants like chemical, petroleum, food
processing, paper and pulp for the automotive industry starts before designing is finalized. In that
case, the demands of contractors to get early distribution will reduces the available duration for
engineering and drawing process to end (Blocher, 2009). The issues exist because of later
distribution of materials and drawings, which lead to more delivering demands and issues. To
eliminate and shield the contractors to the implication of late deliveries, an extensive schedule
buffer, between the automotive and suppliers, is necessary.
Conversely, nothing is impacted when addressing the initial causal factor of variation in the
automotive schemes. Moreover, shielding is expensive and time-consuming; which necessitates
the recommendation of a rule by Gregory and Glenn (Jadeja, Khandare and Batish, 2009). These
two individuals suggested that schedule placement buffers after processes considering variable
outputs. For instance, the management issued schedule buffers between fabrication and

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engineering instead of installation and fabrication. The process of fabrication and delivery is
predictable, except if the drawings were incomplete or incorrect. Moreover, fabrication and
delivery is unpredictable if the drawings are pulled from fabrication yet to be analyzed (Nahmias
and Olsen, 2015). Engineers are allotted much time to do their works efficiently in case schedule
buffers are available over fabrications. This action also favors the fabricators since they will have
the chance to choose their work bundle that meets the demands of production efficiency,
sequence and quantities. Gregory and Glenn recommend resizing schedule buffers to a particular
degree of variation and uncertainty under management. According to research, schedule buffers
are resized regardless of the projects’ stiffness.
The other implementation issues of the JIT are relation to supply chains. As universally known,
the company’s supply chains in the production sector is regarded as a long-term concern instead
of a competition-based bidding. This form ensures that tasks are constellated to partners. The
supply chains that last long in the manufacturing sector imply that supply chain members
enhance their activities collaboratively to deliver novel products, but at pocket-friendly prices in
reference to potential clients. A structure on incentives to consider supply chains as a single
integration makes one of its superior than others (Primrose, 1992). For automotive actors, each
task happens once whereby the structure on incentives motivates constructors to reap off profits
in every task. As such, disjointedness is disadvantageous in automotive task productivity, which
is changeable through an alteration of the composition in automotive chains. The automotive
chain could possible aim at establishing a strategic relationship with the actors and materials’
value chains.
Why is the supply chain in JIT very significant?

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In engineering companies, the schemes of operation are centered on sustaining the process of
production and maintain the products as long as the customers establish more demand. As long
production is maintained, the utility of the same distributers is necessary. This step is
fundamental to facilitate coordination with one distributer since its will be easier to evaluate the
quality of a single worker compared to many. Meanwhile, fluctuations are evident in automotive
supply chains as denoted earlier on. The minimal timeframe of supply chains leads to observable
uncertainties. New tasks also denote new consultants, supplier and contractors in the automotive
sector. The transition of parties in each tasks influenced by the relation between different parties
is for a minimal timeframe (Chen and Wang, 2018). However, this illustrates novel projects,
which implies that participants have to familiarize themselves with each other. Participants need
to know their major roles in the company, quantity of projects to be produced and any other
fundamental aspects, which might affect the company.
Establishing a long-lasting relationship with distributers is a major factor influencing the
automotive scheme. The novel record tracking of distributers is recommendable to consecutive
projects to attain the desired aims of the tasks. Conversely, this scenario rarely occurs in the
automotive industry since it engages other influencers like minimal resources and transportation
among others. Consequently, to undertake automotive tasks considering the allocated resources,
the management team needs to eliminate particular expense, mostly in the aspect of access the
best materials from amount-specific suppliers. This scenario relates to a particular JIT concept,
which denote about the production of the best part at the right time and place.
It is fundamental to ensure that distributers deliver the best parts of project materials as the
project demands. Moreover, suppliers can assure the supply of those materials at the best time. In

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addition to that, the automotive industry needs to have a strategic locate for the storage of
strategic materials to eliminate any form of damages and unexpected expenses. The process of
materials delivery from distributers is dependent on the means of transport that engages less
speculated traffic. In that case, it indicates that many factors need to be considered when
implementing JIT application in the automotive sector.
VII. Factors within the JIT system that affect supplier and inventory control.
An effective implementation process of JIP depends on the flexibility of distributers, stability of
users, management and the commitment of workers to working as a team. By eliminating waste,
JIT obliges to enhance the quality of products and the overall process of productivity. Waste
does not add any value to a certain activity like how work does. In that regard, motion is denoted
as a means of waste (Singh, & Chand, 2010). Waste precisely includes component
overproduction, material delay, product information, material transformation, irrelevant
processing, and production of excess stocks, defects in information or materials and irrelevant
human actions.
The seven JIT principles to overcoming the issues mentioned above are:
a) Waste elimination
The JIT central philosophy to dealing out waste under the concept of JIT is classified into the
categories below. These are:
 Waste due to over-manufacturing
 Waste due to delays

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 Waste due to movement
 Waste due to irrelevant processing
 Waste due to over inventory
 Waste due irrelevant motion
 Waste due to defects
The automotive industry is driven based on schedules. With a well-organized schedule and when
every individual participant effectively, the running of projects is smooth hence improving the
performance (Rushton, Croucher and Baker, 2014). However, the performance of projects might
not correlate with the initially planned schedule. Moreover, the conditions of businesses
transform, supplies slip and designs might necessitate corrections. When schedules have
effective slacks in an impacted happenings, changes have less impact to dates. With little to no
slack, participants are pressurized to enhance the production rate.
VIII. Recommendations and Conclusion
In this research, we analyzed the application of JIT methodology in the Ford Company in
reference to its latest KA model. This is a major and interesting revolution whereby industries
engaged in the production process are assimilated in their physical plants and business activities
(García and Maldonado, 2015). JIT has revealed its success in the delivery of novel products
within a minimal timeframe with less or no expenses incurred from various parties. A vigilant
planning for production, cost-effective analysis, satisfactory outsourcing planning and client
orientation are applauded as fundamental influencers of JIT.

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A significant different between the JIT and traditional strategies is evident in the methodology
realized in intermediate production stages. A traditional concept assumes a purposeful company
formulated to limit manufacturing expenses of specific components. The JIT scheme evaluates
transitional process that respond directly to affect the demand in the later production stages. The
distinction process can be denoted from the alteration between the demand-pull and cost-push.
This paper illustrates a baseline concept model of manufacturing for benefit and cost comparison
of two fundamental methods. In that case, the JIT methodology is the best and largely desired
unless manufacturing economies are connected to the traditional method, which affects the
extensively changing system.

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