Running head: JOURNAL REVIEW 1
JOURNAL REVIEW 1 `
Keshia Henry
Liberty University- BUSI 613
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JOURNAL REVIEW 1
Inventory is the flower of all evil
Purpose
Inventory is believed to be the main cause of reduced production and excessive overtime,
however the JIT (Just-in-Time) is a possible solution to refocus production improvement.
Application of Just-in-time to reduce inventory theory
Organization’s growing complexities and competition have increased the need for
improved supply chain management strategies. According to the Just-in-time policy every
supplier must deliver the right amount of goods, at the right time, and to the right place
(Elahipanah & Farahani, 2008). The Just-in-time process creates the strategic implications that if
production is successful to zero errors creating product evenly and on time. Inventory control can
lead to improvement with the production performance, but the process of removal or reduction
should be conducted slowly and incrementally. Just-in time plays an important role in efficient
distribution of goods by satisfying customers demands on time to help with cost reduction and
increasing the service level for customers (Elahipanah & Farahani, 2008).
The role of inventory reduction has to be strategically planned to fit the production
process. The promotion of inventory removal is sometimes factored into the Just-in time process
because significantly there is possible use for inventory. Inventory control comes into the process
by having just enough to cover certain buffers. Buffers help with the bottlenecks that tend to
arise during the product manufacturing process. Elimination of bottleneck within a
manufacturing system is a way increase efficiency (Bolmsjo, Ingemansson & Ylipaa, 2004). The
more reliable buffer present with the manufacturing process the less bottlenecks which in turn
leads to less inventory on hand. This all leads to improve effectiveness of the Just-in-time theory
to develop more a more calculated supply chain.
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Background of Issue
Production problems are an ongoing issue within the supply chain management process.
Removing inventory before evaluating the the production problems will not resolve the presented
issues with production. The Just-in-time approach in action calls for slashing production and
purchase lot sizes and also buffer stocks--but incrementally, a little at a time, month after month,
year after year" (Inman, 1993). The value of the supply chain management system (SCIS) when
determining production performance is the management control level where the productivity and
quantity are measured. The underlying principle of Just-in-time manufacturing philosophy is to
produce the right quantity at the right time with the right quality level. To produce the desired
quantity that both internal and external customers demand, at the time that they demand it (Chan,
2001). The impact of Just-in-time on an organization supply chain is
Just-in-time main focus is continual improvement, reduction of setup times and lot sizes,
“no defects” goal in manufacturing, worker involvement, and cellular manufacturing (Young,
2014 p. 243). Exception information is a potential leading variable with JIT because actual issues
are predicted and solved at a user level. Exception information is used to highlight potential
customer or operational problems (Young, 2014 p. 9). Exception information seems to be the
exception to the rule within the management control level. The importance of the exception
information is that it helps
Managerial Implications
The managerial perspective shows that many implications or ways to implement and
enforce the changes needed to make Just-in-time with inventory reduction successful. During the
Just-in-time process managers have to ask how hard are the production problems are to find and
how much of the error and mistake blame lies with the workers. Identifying simple production
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problems are easier to find based on where the production process slows down at to create
bottlenecks. These bottlenecks can easily be identified by the pile up of product on the assembly
line and with the easy identification.
Just-in-time not only changes the manufacturing and production process it effects the
organization as a whole. Information systems that support Just-in-time have to be updated to fit
the criteria need for the successful application of the process. Information technology can
enhance the ability of service to benefit Just-in-time such as bar-code technology and point-of-
sale (POS) systems have made it possible to create a just-in-time replenishment system between
vendors and retailers which improves customer service (Small, Yasin, & Wafa, 2003). Other
implications are planning, control, and scorekeeping which all are developed along with
improving the manufacturing or production process.
Summary
In reflection inventory is another variable within the production process that needs to be
reduced as much as possible to increase and improve production. Just-in-time techniques are not
the most solid solution without resolving the base production problems. Just-in-time will
definitely provide more improvements and add quality to the production but the implementation
of the process has to be accurate. If production problems are fairly complicated to solve then
reducing inventory is a process that could be valid to use. Inventory should not be a replacement
to solving the actual production or manufacturing issues.
Just-in-time features various elements that are unrealistic to the actual production goal.
Zero defects which means perfection which is hard to accomplish, so in retrospect JIT strive for
the least amount of defects as possible. Inventory is not a useless practice, however these
concepts have validity Inventory and buffers combined to together can develop organizations to
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reach their goal of achieving the Just-in-time success. Overall the inventory is not the root to all
evil inventory is a disordered and outdated practice but in smaller quantities still provide valid
solution to production problems. JIT is a valuable source to recreate and develop a better
production system and between a combination of all elements working together can only
improve the efficiency of the process.
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References
Bolmsjo G. S., Ingemansson A. & Ylipaa T. (2005) Reducing bottlenecks in a manufacturing
system with automatic data collection discrete-event simulation. Journal of
Manufacturing Technology Management. Vol 16. Iss 6. Retrieved from
http://www.emeraldinsight.com.ezproxy.liberty.edu/doi/full/10.1108/1741038051060947
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Chan F.T.S. (2001). Effect of kanban size on just-in-time manufacturing systems. Journals of
Materials Processing Technology. Vol 116. Iss 2-3. Retrieved from
http://www.sciencedirect.com.ezproxy.liberty.edu/science/article/pii/S0924013601010226
Elahipanah M. & Farahani R. Z. (2008). A genetic algorithm to optimize the total cost and
service level for just-in-time distribution in a supply chain. International Journal of
Production Economics Vol 11. Iss 2. Retrieved from
http://www.sciencedirect.com.ezproxy.liberty.edu/science/article/pii/S0925527307001831
Inman R. (1993). Inventory is the flower of all evil. Production and Inventory Management
Journal. Retrieved from
http://search.proquest.com.ezproxy.liberty.edu/docview/199911228?accountid=12085
Small M. H., Wafa M. A. & Yasin M. M. (2003). Organizational modifications to support JIT
implementation in manufacturing and service operations. Omega. Vol 31. Iss 3. Retrieved
from
http://www.sciencedirect.com.ezproxy.liberty.edu/science/article/pii/S0305048303000240
Young, G. (2014). Supply chain management. New York, NY: McGraw-
Hill Create.
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