The companies that chosen by our group is Toyota, Dell, and Harley Davidson. These company have a similar operation method which are using just-in-time (JIT) inventory management to complete their operations. The main concept of just-in-time inventory management is to remove the waste which involve the waste of time, stock, and inventory. Besides, it also a tactics that help the company to increase their efficiency and decrease the cost of carrying inventory. (Jack Willson, 22 July 2015) In addition, the goals of JIT is to increase return on investment through non-essential cost.
However, volume changes in the market place over time (let's ignore mix for the moment). As inventory increases and sales fall, Toyota adjusts takt time from 57.6 seconds to a slower number to reflect the decline in demand. This will continue as needed each month. When inventory falls (sales pick up), they will increase takt time to a faster rate (such as 48 seconds) and, of course, potentially add more workers to the line. Month by month, Toyota does this type of adjustment and moves people to where they are
Total asset turnover ratio helps to show if the company’s assets are helping to encourage sales revenue, thus a high asset turnover ratio implies good use of assets in promoting revenue. Not only is Strong Tie’s total asset turnover decreasing, as of 2008 it is below the industry average by around 40%. Strong Tie fixed asset turnover is also diminishing and well below the industry average. It is important to acknowledge that Strong Tie has been investing a lot into factory automation which means an increase in assets, thus lowering turnover ratios. This might be lowering rates now, but has potential to reduce labor costs and speed up design which are all influential factors in the company’s strategic planning.
Having a recently updated Customer Information System (CIS) allows company to build the kind of customer relationships needed to maintain and thrive in today’s ever competitive marketplace. The right CIS can do wonders for utility company and make it easier for Enbridge Company to: Track Customer Information Manage Customer Relationships Generate Bills Issue Service Requests Decrease Customer Response Times Maximum Flexibility With a sound Customer Information System in place, it will provide Enbridge Company with the right framework to maximize your efficiency when dealing with customer service issues. Whether company is a large and serving the needs of a large client base or a small utility company looking to branch out, having the right CIS in place can give a deciding advantage over competing utility companies and help to maximize Enbridge’s customer service efforts. Possible role that IT Performs Implementation of an SAP Industry Specific Solution for Utilities Industry (SAP ISU)/ Customer Care System (CCS) on HP Integrity Superdome with HP-UX 11i v3 helps in •Speeds batch processing of core billing by 80% (from 10 to 2 hours), which
In the past, the designer need to predict the marketing trend base on the forecast data and they may not get the things right all the time because they may not know their customer base well enough so the sales volumes go up and down. Through QR supply chain management system, the lead time from the factory and also the throughput time for order placed to Cornwall can properly reduce (Krishnamurthy, 2004) because this system able to help both retailers and suppliers to react quicker to improve the efficiency (Krishnan, Kapuscinski & Butz, 2010). Thus, the QR approach could help to improve the supply chain performance of the company because it helps the company to focus on the real season’s sales pattern and make the right decision of the volume of the product to make sure that the product they made is the product they can
These services gain more profit to the company. The services are most important part to the Volvo companies. There comes to be an ongoing transitions process through the provision of more completed service offerings. The Volvo Trucks companies have been applied the idea of Fuelwatch. The aim is to reduce customers’ fuel consumption and indirectly can cut fuel costs.
Co-innovation strategy: Co-innovation and co-creation involves collaborating and coordinating with customers as well as suppliers in the product development process. This ensures that the products are designed as per customers ' specifications and are aligned with the manufacturing processes. Most of the global organizations leverage online panels of experts to evaluate their product in the development phase itself to avoid rework and over engineering. Co-innovation improvises upon the chances of a successful product launch and ensures realization of high revenues. 2.
Fitzsimons (2000) and Anderson et al. (2006) study how customers respond to stockouts and how to measure and mitigate stockout costs. Substitution effects and its consequences for demand estimation are studied by Kok and Fisher (2007) and Musalem et al. (2012). We shall also explore the inventory management benefits of online-offline integration and investigate the use of modern technology to make the transition seamless.
All this is supporting the Just in Time (JIT) approach of Toyota and increasing the working capital utilization. - Efficiency in warehouse space management: In addition to reduction in safety-stock requirements, the WMS is also helping to increase the storage capacity in warehouse by more efficiently locating items in relation to receiving, assembly, packing, and shipping points. Moreover the items are properly organized in a certain way. This can reduce inventory holding costs significantly. - Reducing inventory paperwork: Implementing the WSM has significantly reduced the paperwork that were earlier associated with warehouse operations.
SUPPLY CHAIN PROCESS: Toyota uses Toyota Production System (TPS) as its Supply chain management strategy. The TPS is based on lean manufacturing and Just in time philosophy. The Supply chain process basically can be described through these three basic principles 1. Toyota uses Just In Time (JIT) philosophy for demand forecast and planning. Toyota plans its capacity by eliminating its inventory to an optimum level.