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

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.