Operational Management: Case Study on Just In Time System and Boeing Strategy

This case study explores the implementation of Just In Time system in the service industry and analyzes Boeing's strategy in location selection and layout of their manufacturing venue. It also discusses the benefits of JIT and the kind of inventory management embraced by Boeing.

Operation Management
case Study

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1. What is Just in Time? What is the purpose of implementation of JIT?...................................3
2. What are benefits of implementing JIT concept? Is there solid evidence of JIT benefits in
research?......................................................................................................................................4
3. What is the main problem which authors were attempting to resolve at Darshan temple?.....5
4. What were benefits of implementing JIT (Queued registration) on waiting times at the
pilgrimage center?.......................................................................................................................6
PART B...........................................................................................................................................7
1. Analysing Boeing strategy in location selection as well as layout of venue where airplanes
are manufactured.........................................................................................................................7
2. What is the kind of inventory management does Boeing embrace? How does Boeing
manage its inventory? Why it is important to manage inventory?..............................................8
3. Describing and critique about organisational strategy to overcome delays in manufacturing.
.....................................................................................................................................................9
4. What other strategies Boeing is planning to implement for cutting cycle times?...................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operational management is delineated as a business function which plans, directs, controls
along with supervises manufacturing practices and delivery of services. In an organisation,
operations management is seen as essential administration practice which have responsibilities
for daily production and strategy in manufacturing services (ALNabhani, Khan and Yang, 2017).
It generates highest efficiency level that is possible within an enterprise and is associated to
transform raw materials, labour and other production factors into valuable products with the
expectation of maximising profit of the firm.
The report is prepared in two parts in which Part A is all about an article that is “A case
study of Just In Time system in service industry”. It defines JIT, purpose to implement JIT,
benefits of executing the concept, problems which are faced by author to resolve at Darshan
temple and advantages of executing JIT in pilgrimage center. On other hand, Part B is based on
Boeing Company which is headquartered at Chicago, Illinois that is major producer of aircraft in
international market. In this part, information highlight are about Boeing strategy in location
selection, kind of inventory management that is embrace at the company, critique of strategy of
company and other strategies which the firm is planning to implement for reducing cycle
durations.
PART A
1. What is Just in Time? What is the purpose of implementation of JIT?
JIT is a dignified process to reduce waste as well as have been huge widespread operational
strategy as it gained success in manufacturing addition to production industry since past years.
The concept of JIT was developed in production and manufacturing domain. It is generally
identified, analysed together with altered for fitting along with benefiting service companies. It
main emphasis is towards process despite of any product. According to Al-Robai and Al-Naeli
(2020), JIT was launched as a substitute to traditional inventory system and is one of initiative
that emphasis more towards reducing waste through eliminating non value added practices. In
other words, Just in Time is a management tactic which aligns raw material order from suppliers
with schedules of production in direct manner. It is employed for enhancing efficiency addition
to decreasing waste through receiving commodities only as per requirements for production
process resulting in decreasing costs related to inventory. In general, the concept of JIT was

originated by Toyota Motor Company to assist enterprises reducing waste, aligning all stages of
production and decreasing manufacturing duration for products.
According to the article, objective to implement JIT system is to provide what customers
require in ordered quantities. At same time, it is also analysed that the purpose behind JIT
implementation is to eliminate waste and help manufacturers that have aspiration for improving
operations of company for the purpose of becoming more competitive with execution of the
system. Waste refers to everything which do not add values in end products from perspective of
users. It is a stratagem which manufacturers uses for enhancing productivity and diminishing
level of wastage through receiving commodities only as it is required for manufacturing
procedures (Boris, 2018). It makes good manufacturing by minimising possible time to deliver
finished goods, workspace required, human resource needed and is done with highest quality
with lowest cost.
2. What are benefits of implementing JIT concept? Is there solid evidence of JIT benefits in
research?
Just in time is controlling technique which improves production environment. It avoids
waste concerned with overproduction, holding excess stocks and waiting for materials. The
concept is all about production or manufacturing only what is required, at the time it is
demanded and in exact amount. Implementing JIT concept have five major benefits that are as
explained:
Reduction in inventory: Inventory is said to products and materials which an organisation
holds for ultimate objectives (Campbell, 2017). One of benefit of implementing JIT concept is
that it reduces overproduction, which occurs at the time supply if commodity in a market
increases demand resulting to accumulation of inventories that is unsalable. In JIT system, orders
are made for what is required that leads to a situation on no risk of accumulating unusable stock.
Productivity improvement: Productivity is a ratio among output volume as well as
volume of inputs. Execution of JIT concept benefits manufacturers in keeping production
increased and moving towards new products fastly addition to easily if required. For the purpose
of JIT production, it is a requirement for very close communication among all involved parties in
while production process so that the production level is improved by immensely emphasising on
quality of end product and attaining first time right for various commodities.

Improved quality: Quality is said to conformance to specifications. Through JIT concept,
producers have knowledge about at what time employees are required at different workings of
assembly so to meet demand of manufacturing stages. Implementation of JIT concept helps in
making more flexible workforce that emphasis towards quality production with decreasing defect
rates that results in improving quality.
Increased profit margin: It is possible due to implementation of JIT concept that
businesses are able to increase profit margins as the concept cuts cost in production procedure. It
help sin eliminating costs related to raw materials, inventory and stored commodities that leads
to increasing profit margin of company. JIT concept have significant effect on various measures
of profitability and efficiency of corporate that translates into higher return on total assets and
generating profits (Chen, Guo and Han, 2018).
Increased competition position: According to the article, execution of JIT concept
benefits in building and sustaining competition position for the company. It makes efficient
supply chain that delivers products at lower costs in manufacturing process and then lower costs
are passed towards customer that makes products of business more affordable. This results in
acquiring larger market share resulting to outpacing competitors and building unique position.
In a research, it is found that JIT is production along with inventory system wherein
materials are purchased as well as units are produced as per requirements to meet actual
customer demand. The implementation of JIT concept benefits in more cost efficient production,
waste elimination, defect free output, improving productivity, reducing manufacturing time,
improving supplier relationships and many more (Mansoori, 2020). All the benefits from JIT are
possible within just in time environment. Moreover, the concept guides towards foundation for
implementing JIT control techniques as well as improving the environment that is essential for
shifting to a higher degree of process control for striving towards reducing wastage. With JIT
system, sudden changes in demand are responded quickly as well as builds of unsold finished
commodities are avoided that benefits in spending less time on checking together with re-
working on some product. It reduces defect rates and assist in less waste that provides greater
customer satisfaction.
3. What is the main problem which authors were attempting to resolve at Darshan temple?
Darshan temple is main purpose to which pilgrim visits Pandharpur in period of
pilgrimage. In this, per day result is fixed as well as is an accumulation to processing rate as well

as darshan duration available. In this, the main issue which authors are attempting to resolve at
Darshan temple is to manage waiting experience as one of greatest disadvantage of existing
system is that specific pilgrim do not have any idea about how long will it take to reach at front
of deity and how many people are ahead (Davar and Pandey, 2020). The existing processing rate
if around 40 pilgrims per minute translated towards 2400 pilgrims in an hour. In this, darshan are
kept open for nearby 14.5 hours. It is notices that the result rate is constant as well as process of
arrival is stochastic. At the time when arrival number per hour is more than 2400 then occurrence
if wait is noticed. Due to great privilege addition to tolerance needed for undertaking the
pilgrimages, there are large number of pilgrims who have willing for undergoing excessive
together with unexplained delay. Moreover, the problem which authors are working for resolving
at the temple is time of physical queue in which an individual have to wait for darshan. The
authors are making huge efforts to understand reduction of waiting period for those who uses
Just in Time approach.
4. What were benefits of implementing JIT (Queued registration) on waiting times at the
pilgrimage center?
Queued registration is a kind of JIT system that is devised for controlling long queues. In
various situations, queues of population forms that results in long waiting time to reach at end
location (Fu and Bai, 2016). The queue management system refers to a set of sub systems which
helps in controlling flow of people, enhancing their experiences, managing waiting time and
hence forth fir various places. In pilgrimage center, implementation of Queue registration as JIT
system provides favourable experience to pilgrims as it eliminates long lines in queues. With
application of JIT that is queue registration in duration of waiting at pilgrimage center, the
observed benefit is that waiting time for pilgrims is decreased by nearly to seven hours.
Furthermore, the pilgrims are able to select date and time as per the availability through JIT
concept. With queue registration, pilgrims get registered through web sites and gets ticket that
indicates name, location of living, time and date of darshan. With execution of the concept,
people booked their time of darshan by producing ticket at “Tukaram Bhavan” just half hour
prior to time of darshan. Once verification about photograph on ticket, date and time are done
then an individual is permitted to enter into the queue for darshan. After around 15 minutes, an
individual gets proper darshan without any disturbances that leads to reducing waiting time. So,
pilgrims that have implemented JIT approach are benefitted with waiting time that is maximum

of 30 minutes. This resulted in happy customers or pilgrims and improves relationship among
management and customers as staff members are able to communicate with pilgrims about what
is happening as well as how they are feeling about getting darshan without waiting in queue for
longer period or duration.
Queue registration have possibility to ensure next customer is served with more
advantages in right number and right service are sent to them that improves their interest for
darshan at temple. As per the article, it clearly indicates that waiting duration is decreased by Just
In Time. Moreover, it was not possible for pilgrims who have taken darshan in queue as
uncertain for long waiting. By looking towards the advantages, the management have made a
decision for increasing quota for concept of JIT of Queue registration in upcoming period of
pilgrimage (Reichert and Strüker, 2016). At the location, queue registration also benefits in staff
satisfaction as employees are able to serve customers in more relaxed environment through
implementation of the JIT system. When there are relaxed employees than customers are able to
expect and receive better service quality as the system assist in allotting working to each person
so that all the operations are completed smoothly without any disturbances and irritation to target
people.
PART B
1. Analysing Boeing strategy in location selection as well as layout of venue where airplanes are
manufactured.
Boeing Company is among two major producers of aircraft within international market.
For it, being in right location is essential element for success of business. In case, when wrong
location is selected that it may result in inadequate access to marker, transportation, materials,
customers and workers (Sarri, Martelloni and Vieri, 2017). Location selection is important for
business and its overall profitability. In this context, Boeing strategy for location selection
involves key aspects that are facilities, feasibility, labour, production area and use of updated
techniques. Through the location strategy, managers of Boeing company are able to obtain
optimal location that is aligned with needs, choices and objectives of the company which allows
it to maximise opportunities by minimising risks together with cost.
In context to layout of the venue, Boeing Company have a building that is fairly large for
accommodating huge undertaking. The building of the entity covers nearby 98 acres as well as

have four stories high that makes it largest by volume within the globe. It is a windowless
building that has six huge doors at one side, each are nearby 100 yards wide as well as 40 yards
high that is similar to football field. The layout has capacity for fitting Disneyland inside it and
still leaving 15 acres for indoor parking.
2. What is the kind of inventory management does Boeing embrace? How does Boeing manage
its inventory? Why it is important to manage inventory?
Inventory management is termed to a systematic approach of sourcing, warehousing and
distribution of available stock, both raw materials and finished products. The Boeing embraces
Just In Time inventory management in which expediters arranges required inventory for planes
in direct connection with production schedules. In the company, the expediter keeps proper track
of progress of all parts and then accordingly deliver then at suitable place as soon as they comes.
In meantime, portion of tasks remain unfinished and awaiting replacement parts, employees
complete other portion of assembly. It is one of great kind of inventory management which
decreases inventory costs and helps businesses to receive required stock level on an as required
basis rather of ordering in bulk as well as adding risking dead stock (Shanin and Boris, 2018).
Boeing manages its inventory through bar coding, collection of manned tool cribs along
with point to use dispenser for managing inventory and usage, issue purchase orders, tracking
consumption and generates reports on various aspects related to its inventory. Moreover, it
records all parts and orders related to production and warehouse of items so to discover missing
or defective parts as well as them prioritising as per critically of parts for disruption of workflow.
Further, the parts with highest priority are assigned to expediters that determine best aspect to
replace other part.
It is significant to manage inventory because it makes or breaks a business. Effective
management of inventory strikes balance among stock that is coming in as well as the inventory
which is going out (Toghani Holari, Taher and Mehrasa, 2020). In case with Boeing Company,
inventory management is significant to fulfil orders accurately, planning and ordering inventory
in better ways, improving accuracy of stock orders, organising warehouses, enhancing
productivity, saving time and money. In other words, successful inventory management enables
cost controlling and reducing production duration to Boeing Company.

3. Describing and critique about organisational strategy to overcome delays in manufacturing.
Re-engineering Boeing is the strategy of Boeing Company for overcoming delays in
manufacturing. It refers to redesigning core processes of company for improving product quality,
output and reducing cost (Webb, 2017). The top priority of the strategy is to upgrade the
computer system that will help or provide better links to suppliers as well as leads to more
updates information for material management in production processes that enables the
organisational representative that are at customer sites to devise customised aircraft design on the
laptop computer.
Re-engineering strategy do not suit in all business requirements as it is dependent on
certain factors such as size along with availability of resources. At same time, re-engineering
strategy fails to provide immediate resolution and concentrates significantly on long hauling
income collaboration which not only takes efforts for shaping but also very hard to gauge.
Moreover, the strategy needs substantial investment in information technology with proper
planning, exceptional execution together with fantastic teamwork. Re-engineering strategy have
chances to replace humans at the duration of getting work completed error free that involves
huge threats to occupational profiles in Boeing Company.
4. What other strategies Boeing is planning to implement for cutting cycle times?
One or strategies which Boeing is planning to execute so to cut cycle time is lean production
which is an approach of operation management that majorly emphasis on cutting out waste by
ensuring adequate quality. The main aim behind lead production strategy is to cut costs through
making organisational working more efficient as well as responsive to needs and choices of
market. Through this, the entity hopes to optimise people, efforts, energy and resources for
devising values (Xing, Fu and Cheng, 2017). With this strategy, customers will get their planes
as early as possible and will reduce labour together with inventory costs by decreasing
production time for aircrafts.
The other strategy that Boeing is planning to execute for reducing cycle duration is Late-
stage customisation that is also named as delayed differentiation in which standardising of
assembly of aircrafts will be done as early as possible prior to adding custom feature. This
further leads to time saving step that speed up production considerably by providing the business
a key competitive benefit (Yokoyama and Toyoda, 2017). At same time, Boeing is also working

to decrease number of suppliers it have as well as devising better links together with cooperation
from suppliers.
CONCLUSION
From the report, it have been concluded that operation management guides for managing,
controlling, directing and supervising products and working of business. JIT system refers to
management concept that coordinates between raw materials and production schedules.
Implementation of JIT concept benefits in reducing inventory, productivity improvement,
improved quality, increased profit margin and increased competition position. In pilgrimage
centre, set up of queue registration benefits in proving favourable experiences to pilgrims,
reducing their waiting duration and less groups of people at one place. Inventory management
works to maintain desired stock level of particular product and managing cost of investment on
inventory. Effective inventory management strategy benefits in reducing risk related to
overselling, greater cost savings, avoiding excess or stock outs, improving business negotiations,
better product visibility, making more profitable decisions for business and keeping track of all
stocks. The strategies that help in cutting cycle times are lean production, reducing number of
suppliers with the entity, establishing links with better suppliers and late stage customisation
strategy.

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Online:
Mansoori. H. 2020. Benefits of JIT. [Online]. Available through: <
https://www.valleybox.com/blog/bid/130296/benefits-of-jit-just-in-time>