Operations and Technology Management

RUNNING HEAD: Operations and Technology Management
Operations and
Technology
Management

Operations and Technology Management 1
Contents
Introduction ..................................................................................................................................... 2
JIT Concept in the practice of Operations and Technology ........................................................... 2
Major Shortcomings of the JIT Production Approach .................................................................... 3
Characteristics/ Attributes of a Service........................................................................................... 4
Intangibility ................................................................................................................................. 4
Perishability................................................................................................................................. 5
Inseparability ............................................................................................................................... 5
Variability.................................................................................................................................... 6
Conclusion ...................................................................................................................................... 6
References ....................................................................................................................................... 7

Operations and Technology Management 2
Introduction
With the increasing competition around the globe, the business environment is changing at a fast
pace thereby pressurizing the manufacturers for quicker responses and adopting shorter product
life cycles in order to meet the rapid demands of the customers. Therefore, the changing
customer demands are significantly managed with the help of a wiser approach named Just In
Time (JIT) philosophy. JIT has completely transformed the economy of the globe by changing
the face of manufacturing and has brought about a significant rise in profits (Shin, Ennis &
Spurlin, 2015). It is both a philosophy and a set of methods and techniques for management
utilized for the purpose of eliminating waste (particularly inventory). The report also throws light
on the various attributes of a service.
JIT Concept in the practice of Operations and Technology
Just In Time (JIT) can be defined as the manufacturing of the required items in the required
amount at the required phase. In other words, JIT concept aims at the provision right product at
the right place in right quantity at the right time. For the purpose of achieving the 4Rs, the
necessity arises for a pull system of inventory. JIT focuses on the creation of more responsive
logistics systems and reduction of levels of inventory thereby avoiding the surplus inventories.
JIT can also be described as an inventory strategy which is employed by the companies in order
to increase their overall efficiency and reduce inventory costs by decreasing the waste by the
way of receiving goods only when their requirement arises in the process of production. It aims
to address issues related to poor quality of products, delivery of incorrect part or quantity and
high cycle times (Stevenson & Hojati, 2007).
The major goals of JIT involve arriving at the zero inventory level with the reduction in the setup
costs for the achievement of smallest economical lot size. The goals also includes production of
the items at the required rate of the customer, safety stocks minimization, implementation of a
program related to total quality control, elimination of needless lead time and the optimization of
the flow of materials from the suppliers till the point when the finished product is sold such that
the inventories are optimized (Lou, et. al., 2015).
The adoption of JIT concept provides advantages to the business in terms of reduction in work-
in-progress and inventories along with the reduction in space occupied with the inventory. It