Michael S. Spencer

JIT Systems and External Logistics Suppliers

Just‐in‐time (JIT) systems have evolved from a few selected implementations in the automobile industry into a widespread business practice. Early understanding of JIT models indicated that JIT can reduce inventory in the production system through the elimination of wasteful activities. This understanding led some researchers to suggest that JIT warehousing or JIT logistics are contradictions in terms since JIT′s purpose is to eliminate warehousing by delivering components just as they are needed. However, more recent studies of JIT practices indicate that an opportunity exists to use JIT benefits. Discusses the benefits of outsourcing logistics functions to external suppliers in order to enhance JIT performance. Additionally, a survey of services provided by JIT logistics suppliers is presented as well as criteria for selecting the “best” logistics supplier.

An exploration of the components of JIT

The positive impact of just‐in‐time (JIT) programmes on production performance is well documented. JIT programmes consist of a number of different elements including change‐over reduction, kanban methods, and preventive maintenance programmes. Some researchers have proposed lists of elements they believe are critical to JIT success. However, there is a lack of consensus among researchers as to which items should be included in the list of critical elements. Reports research, consisting of a survey of manufacturers known to be active in JIT exploration, and an in‐depth case study to improve the understanding of the critical components in JIT programmes. Results from the survey were compared with existing research to determine better the elements critical to JIT success.

Just‐in‐time Functional Model

It has been proposed that the just‐in‐time (JIT) philosophy can be effectively integrated systemwide to yield increased efficiencies and excellence throughout an organization. Greater understanding is needed as to what this entails. The researchers empirically test and attempt to validate a previously developed basic functional model of JIT comprising three components – respect for people in the system, the execution system and planning process prerequisites – needed to support JIT′s goal of elimination of waste through a process of continual improvement. Regression model results support the hypothesized relationships between the model components and the JIT waste‐elimination goal.

Just‐in‐Time Concepts: Applicability to Logistics/Transportation

Successful manufacturing applications of the Just‐in‐time (JIT) management philosophy have been well documented in the literature. Utilisation of JIT techniques within manufacturing offers the potential for significant operational improvements beyond inventory reduction. JIT‐related improvements include increases in quality, improved employee productivity, decreases in stockouts, and reductions in customer response time. Relatively little research has focused on the transferability of JIT concepts to other functional areas. The article explores the application of JIT concepts to a specific logistics function – transportation. Although review of the literature suggests that JIT systems significantly impact on the transportation function, no methodology was identified for incorporating the just‐in‐time philosophy within a transportation firm in a totally integrated manner. Therefore, two models are proposed illustrating the authors′ conceptualisation of the phased development and implementation of JIT.

Total quality management: applicability to law firms

The practice of law is under pressure from various sources. Economics is one such source. The number of licensed lawyers is growing rapidly at a time when other disciplines are threatening areas of practice that were once the sole province of lawyers. Another pressure on the profession comes from the courts which are in some instances attempting to reduce legal fees. Thus, a question arises as to whether law firms may be implementing TQM techniques developed by other disciplines and by the few law firms which are leading the way for change. To answer that question a survey of Iowa law firms was conducted. The survey was sent to 100 law firms in Iowa in an attempt to determine the extent to which these firms are adopting TQM in an effort to reduce costs and increase efficiency. The research in this exploratory study shows that Iowa lawyers are not embracing even simple means of increasing efficiency such as employing paraprofessionals and upgrading employees’ skills.

Logistics support for JIT implementation

SUMMARY It is generally believed that to maximize the full potential of ‘just-in-time’ (JIT), it must be fully integrated, system-wide. To achieve such integration, a common understanding of and appreciation for JIT is needed within various functional areas. Therefore, manufacturers and logistics executives were surveyed to determine their attitudes and understanding about JIT. The primary objective was to identify how different or similar their opinions were regarding JIT adoption and implementation. The manufacturer respondents indicated a much broader view of JIT as a management philosophy whose goal is to eliminate waste throughout an organization. In contrast, the logistics respondents were more likely to view JIT as largely an inventory reduction policy. In general, there appears to be an opportunity for logistics managers to more fully utilize aspects of JIT to achieve overall performance improvements.

TQM Stresses MIS: The Ache of Continuous Change

As an operating philosophy, TQM has crossed departmental and disciplinary boundaries as a way to increase productivity and improve quality. Information Systems Managers, particularly those supporting legacy systems, face substantial challenges in an organization implementing TQM. A principle philosophy of TQM is that of conÐ tinuous improvement resulting in a continuous stream of change requests for the IS department. IS managers must understand this as a source of the increase in change reÐ quests and seek ways to successfully manage them. In the short run, one method is active participation on the qualÐ ity teams suggesting such changes. The long run, however, requires a proactive stance by the IS department that inÐ cludes implementation of the TQM philosophy throughout its own ranks. Otherwise, the IS department will continue to be stressed by an avalanche of change requests and viewed as a roadblock to successful TQM implementation.

Warehouse Management Using V‐A‐T Logical Structure Analysis

The management of a warehouse facility has often been viewed as a problem in facility layout, inventory management, or logistics. Seldom has the management of a warehouse been viewed as a process of succeeding operations that can be analyzed as a unique operating production system. Yet, warehouses are process oriented and can show significant improvements in productivity by applying methods usually used in production environments. One such method if called V‐A‐T analysis. This method examines the process, determines the logical structure of the process and defines critical control points for management to use to improve the overall process performance. This article describes the V‐A‐T analysis and applies the method to three different types of warehouse facilities.

Cycle counting in a JIT environment using V-A-T focusing

Inventory cycle counting is considered a basic component of effective inventory management. With the Just-in-Time production management system, inventory is greatly reduced. Is there a role for cycle counting under JIT? Logical structures for any manufacturing process can be determined by combining the product routeing with the bill of material. The identification of the logical structures is known as V-A-T analysis. By using the V-A-T analysis method, cycle counting can be focused to support the operations that are most critical to success under JIT. Three manufacturing plants are used to illustrate the process.