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Just in Time Services

In: Business and Management

Submitted By monimaba
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Explain how JIT works in services. After all, how does “small lot size” and “reduce setup cost” make sense in services? Supply examples to support your work
Just in Time (JIT) is an operational philosophy initiated at Toyota Company in Japan. For many years, JIT system was of great interest and was applied mainly in manufacturing companies. Most recently, JIT began to migrate to non-manufacturing environments. Some of these non-manufacturing environments are the business services; examples: health care, mail-order, hospitality sector, consulting, education, legal services, utilities, real estate, and many others. The implementation of Just in Time System in the service sector is similar to that in the manufacturing sector. The goal of this document is to explain some important aspects of Just in Time in services; these aspects are suppliers, layout, inventory and scheduling.
Suppliers. The main goal of both service companies and suppliers is to satisfy customers. Business services that have adopted the Just in Time system depend on the quality of the suppliers to satisfy customers through quality of service. Key points to obtain quality in supplies and reduced waste depend on having just a few suppliers based on a strong relationship, on how close suppliers are located, and on the quality of delivering on time. Quality and on time supplies make it possible to offer better quality of services at lower cost and higher customer satisfaction.
Layout. Just in Time layouts diminish the waste of movement, both movement of materials and people. Using JIT layouts makes it possible to have what is needed (materials or supplies) in the right place. For example, before using the JIT system, McDonalds needed more time for the food-preparation process; with JIT layouts McDonalds increased food quality and customer satisfaction service. With the new system of food preparation…...

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