The Ultimate Goal Of JIT
JIT is a Japanese concept. Also called the Toyota production system, it aims at producing the necessary parts in quantities needed, at the time they are required. The ultimate goal of JIT is to eliminate inventory, to have minimal work in process inventory monitored by reduction in working capital. JIT considers 7 types of wastes. Overproduction producing more than the customer needs Transportation Anywhere where goods are moved within a process Waiting where waiting time occurs, traditionally where one process waits for another to finish before it can start. Inventory typified by stock or materials that are not being used in the process or current activity. Motion Poor planning and organizational layout often cause motion waste Over processing where steps occur in the production process that do not add value to the end customer this is termed overproduction Defects The process results in an error or requires rework JIT divides all works into value adding and non-value adding activities and then eliminates all non value adding activities. Kanban is one means through which JIT is achieved. It is a scheduling system that tells you what to produce, when to produce it, and how much to produce Poka-yoke is a Japanese term that means “fail-safing” or “mistake-proofing”. Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur. Autonomation describes a feature of machine design to affect the principle of jidoka. At Toyota this usually means that if an abnormal situation arises the machine stops and the worker will stop the production line. Kaizen refers to the philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. Literature review Weiters (1984) in one of the first literatures on this topic states that “Financial justification of JIT in service industries is less likely but in service industries JIT offers intangible benefits in terms of improved service quality and customer satisfaction.”(cited by Inman and Mehra 1990) Benson (1986) was the first to point out “Service operations are organised systems of production processes with the same potential of improvement through implementation of JIT precepts as manufacturing operations” Cited by Duclos et. al. 1995 Berling and Geppi (1989) studied the supply chain of healthcare sector and offered JIT as an approach to hospitals in order to reduce inventory. They suggested closer relationships between hospitals and distributors. Billesbach and Schniederjans (1989) present a case study on JIT application in an administration setting. The case was on a big corporation and JIT programme was implemented in the headquarters of this corporation. Their approach was based on examining activities and the ones not contributing to result to be eliminated. Inman and Mehra (1990) had worked on FedEx. This package delivery company implements JIT to reduce their inventory of quasi-MRO goods (mainly packaging, labelling supplies).aimed at improving their service quality and competitiveness through implementation of JIT and anticipated that inventories would be reduced as a result. Lee (1990) presents a case study of a small bank. Study is focused on this banks loan approval process. Bank follows a two phase process and first evaluates the applications and makes the decision of lending in second phase. This process usually takes 12 days. Applying JIT approach whole process is redesigned and several tasks are unified. New approval process takes 4-5 days. Wasco et. al.( 1991) presents a case Kodak’s quality assurance division. This division provides services to worldwide chain of Kodak. An MRP II system is implemented with JIT approach and conclusion of the study is JIT techniques enhance the potential of MRP application. One of the most radical case studies is presented by Barlow (2002). He investigates the applicability of JIT techniques to hotel industry. Weakness of this study is it concentrates on liquor stocks of these hotels and draws conclusions on if statements and these hotels actually do not adopt any JIT techniques. Ruiz (2003 pp.1) JIT focuses on the process, not product. Therefore it can be applied (in theory) to any group of processes, whether manufacturing or service. Ultimate goal of JIT is to produce a good and a service without waste Literature on the matter quite confidently states that JIT can be applied in services and through reported case studies evidence is provided. JIT applications in service industries are vague in some sense. There are no empirical studies and reported case usually resembles manufacturing setting. Service operations management – evolution How to implement JIT in services? A philosophy of manufacturing excellence based on pursuit of the planned elimination of all waste and consistent improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product from design engineering to delivery and including all stages from conversion of raw material onward (APICS, 1992). Total visibility – of equipment, people, material and processes; Synchronization and balance – of production to sales and supply to production; Respect for people – Line operators is responsible for production, problem solving and improvement; Flexibility – adapt production to customer needs; Continuous improvement – never satisfied with the process; Responsibility for the operation’s environment – those who design, manage and operate the processes are responsible for the outcome; Holistic approach – companywide philosophy of elimination of waste; Each of these JIT themes may be applicable to service organizations; Synchronization and balance of information and work flow matching output with customer demand – one of the important aspects of service operations often cannot inventory the output of their processes making balance even more vital Semantodontics, a direct marketing company selling nationwide by catalogue to dentists, also found JIT an appropriate approach for reducing the time to process paperwork (Conant, 1988) and, hence, the time required for a dentist to receive an order. The idea of making lot sizes as small as possible was implemented by decreasing the batch size in which telephone orders were aggregated. As a result, telephone orders were moved to the second stage of the process three times daily rather than once a day, as was the previous norm. Set-up time for entering new customer records was reduced by moving the process to the original telephone operation where the data were first gathered. The decrease in order batch size had a behavioural impact on employees as well. From the sense of satisfaction gained on completion of multiple small batches, employees tended to work faster and more efficiently. Atlantic Envelope Company uses kanban trays at its Atlanta facility to move documents within the order entry department. Order entry time fell to under a day from a previous uncertain number of days. Total visibility of all components of the process Northern Telecom Inc.’s (NTI) Customer Service Centre borders the traditional manufacturing environment (Savage-Moore, 1988) and the implementation is a good example of providing visibility through the use of work cells. This unit of NTI has the labour-intensive responsibility of repairing printed circuit packs (PCPs). For an individual PCP, it is difficult to predefine the specific repair process required, not unlike a job shop environment. The work cell concept was applied to keep all work on a PCP performed within a single cell and by one team of employees. This provided all employees repairing a PCP with visibility as to the repair needs and processes used to repair the product. Additionally, employees were cross-trained to staff the cells and jobs were redefined to recognize employee training efforts. Over a two-year period, NTI saw customer service levels increase from 85 per cent to 100 per cent and quality levels significantly improved. Work-in-progress inventory was reduced by 75 per cent and repair cycle times reduced from one week to less than 48 hours. Continuous improvement of the process The Manufacturing Quality Assurance Organization at Kodak in Rochester, New York provides specialized services in the form of sample testing of photographic film, chemical and environmental testing, equipment development and calibration control. JIT precepts were introduced to provide a framework for involving the entire organization in continuous improvement (Wasco et al., 1991). Fifty JIT cells were established to start the JIT delivery of products or services based on functional precepts. JIT activities were used to reduce work-handling steps and run times. Improvements through JIT techniques saved an average of $33,000 per month in 1990. Holistic approach to elimination of waste suppliers Few suppliers; Nearby suppliers; Repeat business with same suppliers; Active use of analysis to enable desirable suppliers to become/stay price-competitive; Clusters of remote suppliers, competitive bidding mostly limited to new part numbers; Buyer plant resists vertical integration and subsequent wipe-out of supplier business; Suppliers are encouraged to extend JIT buying to their suppliers; Quantities: Steady output rate (a desirable prerequisite); Frequent delivery in small quantities; Long-term contract agreements; Minimal release paperwork; Delivery quantities variable from release to release, but fixed for whole contract term; Little or no permissible overage or underage of receipts; Suppliers encouraged to package in exact quantities; Suppliers encouraged reducing their production lot sizes (or store unreleased material); Quality: Minimal product specifications imposed on supplier; Help suppliers to meet quality requirements; Close relationships between buyers’ and suppliers’ quality assurance people; Suppliers encouraged to use process control charts instead of lot sampling inspection; shipping: Scheduling of inbound freight; Gain control by use of company-owned or contract shipping, contract warehousing, and trailers for freight consolidation/storage where possible – instead of using common carriers. Flexibility in the use of resources Bookbinder and Locke (1986) present a model to determine if JIT distribution methodology is a feasible alternative to traditional distribution methods. They investigated the behaviour of two different distribution models for JIT organizations. In the first, a factory-warehouse-retailer distribution system, the warehouse holds stock. In the second, stock moves from factory directly to retailers. The models were compared using statistical tests, and the second model was determined to be the superior distribution system because it furnished essentially the same service level to retailers while carrying one less echelon of stock. Another mathematical model is offered by Ramasesh (1990) for the implementation of JIT techniques in purchasing systems that have not yet advanced to the ultimate level of JIT purchasing (lot size of one). He treated the fixed costs associated with the adoption of JIT as investment, and justified it based on the savings generated using any of the techniques of investment analysis. He modified the traditional economic order quantity model to include explicitly the costs of small-lot shipments. He also provided guidelines and formulae for determining the order quantity and the optimal number of shipments. Case studies DHL- impact of JIT The founders began to personally ship papers by airline from San Francisco to Honolulu, beginning customs clearance of the ship’s cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbour. With this concept, a new industry was born: international air express, the rapid delivery of documents and shipments by airplane. DHL network continued to grow at an incredible pace. The company expanded westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was already present in 170 countries and had 16,000 employees. The different business units of the company are DHL Express DHL Freight DHL Global Forwarding DHL Exel Supply DHL Global Mail The process above mentioned was improved using JIT with following ways Inventory Management Concerning Services For instance, in the case of DHL, vehicles, bicycles and other assets that facilitate service delivery must be accounted for, serviced, ready and available to be used for work purpose. Quality Management Concerning Services Tangibles Reliability Responsiveness Competence Courtesy Access Supplier Relations Concerning Services Human Resource Management Concerning Services JIT in retail The key principles of JIT in any system are: No wastage, Total visibility, and Flexibility in the use of human and material resources In any environment these principles translate into three simple rules: don’t start any work unless the demand signal indicates a need for more material; if the demand signal indicates a need, work to fill that need; and, never exceed the queue-size limit Automatic Replenishment Systems (ARS) is also an example of application of JIT in retail. JIT in Indian service industry A survey was done on the Indian service industry. The data was collected from the selected service industries and analyzed. The results of degree of importance are given in the table The most important element recognized by the Service industries was waste reduction (mean=0.8929). The least important element was JIDOKA (mean=0.5625). The elements of the study are mentioned in appendix table 1 JIT in hospitals Most research in the health care industry has been directed toward process and information system improvements. Generally, service environments such as health care are likely candidates for JIT if their operations are repetitive, have reasonably high volume, and deal with tangible items such as mail, checks, bills or letters. In hospitals, there is a vital department named CSSD (Centre for Sterilization Service department), the functions of which include materials management, instruments reception, washing, packing and sterilization, sterile store, instruments distribution As an illustration a previous supplier model can be analysed And compared with an improved model, which centralises and streamlines the supply chain JIT in administrative setting JIT practices and their effect on quality can be analysed Human elements of JIT Steps in implementation of JIT in service industry Eliminate disruptions in work of the employees and make the service system flexible and train the workers to handle more variety. reduce set-up time and eliminate waste including errors and duplicate work and minimise work-in process e.g. Packages waiting to be delivered, calls waiting to be answered, pending orders to be processed, trucks waiting to be loaded/unloaded Generally, service environment may benefit from jit system if the operations are repetitive, have high volume, and deal with tangible items e.g. Sandwiches, mail or bills services must involve manufacturing like operation Consistently high quality service employees can be taught the value of providing defect free services uniform facility loading reservation systems and differential pricing are ways to level the load on the facilities standardised work methods high efficiencies achieved by analysing work methods and standardising Close supplier ties volume services such as fast-food joints and mass merchandisers require close supplier contacts to ensure frequent short lead time and high quality shipment of supplies Flexible work force greater the customisation in the service, greater is the need for a multi-skilled workforce e.g. Electronic repair shops needing wider experienced workforce to diagnose the problems and repair the defects Line flow strategy mangers can recognise their employees and equipment to provide uniform flows through the system, and eliminate wasted employee time e.g. Banks use this system in their cheque processing operations Process improvement and problem solving can contribute to streamlining a system, resulting in increased customer satisfaction, and – higher productivity – e.g. Self service system including retail operations, ATM, vending machines, service stations etc which is the ability to provide services when required simplify the process, especially when customers are part of the system jit services , if achieved , can be a major competitive advantage for companies A Framework Appendix Table 1:
Kingdom Of Heaven | Summary | Analysis
custom writing service Kingdom of Heaven by Ridley Scott is a modern film about the Crusades, set in 1184 centered on Balian of Ibelin. The film is presented as a conscious piece of historical fiction and the majority of the film follows closely with historical records. (Wikipedia) William Monahan, the films writer, has included several fictional characters and dramatized the relationships between characters to increase the films artistic and commercial appeal. Ridley Scott makes an effort to promote Christian/Muslim peace in the Holy Land and downplays traditional Religious viewpoints. The film’s cinematography is visually stunning and the battle scenes are intense. (Radcliffe) Overall, the film is enjoyable to watch, although it is quite long. The Directors Cut Edition has a running time of 189 Minutes. Kingdom of Heaven is a fictional historical action film with the main theme of promoting peaceful coexistence between religions. The film begins in a remote French village as Balian, a blacksmith, is devastated over his wife’s suicide. Balian meets a group of Crusaders led by Baron Godfrey of Ibelin, who reveals himself to be Balian’s father. This part of the storyline deviates from historical records because Baron Godfrey is a fictional character and Balian is from Ibelin. (Wikipedia Balian de Ibelin) After killing the town priest, Balian joins Baron Godfrey on his Crusade to Jerusalem with hope of redemption and forgiveness for his sins. During Balian’s quest to Jerusalem he is Knighted and after his father Godfrey’s death, is recognized as Baron of Ibelin in Jerusalem. Scott depicts Jerusalem as a city where Christians and Saracens live in peace under King Baldwin IV. King Baldwin IV the Leper ruled Jerusalem from 1174-1185. Jerusalem’s political arena is complex, as the Knights Templar, led by Guy de Lusignan and Raynald of Châtillon, Tiberius, the Marshal of Jerusalem, and Princess Sybilla all are seeking to increase their own power. The Knights Templar led by the films Arch-Villian, Guy de Lusignan are the primary Villians and portrayed by Scott as mercenaries, seeking profit and attacking Muslims because “God wills it.” (Kingdom of Heaven 2005) Princess Sybilla and Balian begin a relationship when she visits Ibelin. This part of the story is fictional and my feeling is that Scott intended to make the film more appealing to women by adding a romantic affair between the main characters. The Knights Templar attack a Muslim trade caravan that is under protection of Saladin, the leader of the Muslim army. Saladin is a Muslim historical figure that led the Muslim Army in opposition to the Crusaders and ruled over Egypt, Syria, and Damascus. (Maalouf 1984) This attack sets into motion a course of events that ends with Saladin gaining control of Jerusalem in the film’s final scenes. Saladin attacks Kerak, Raynald’s castle as retribution for his crimes. During the battle, Balian and his men are captured while trying to defend the villagers. Because Balian had displayed mercy by releasing one of Saladin’s servants earlier in the film, Saladin releases Balian and a temporary truce is negotiated between the Muslims and Christians. This is an example of the films main theme and prominent sub-theme of doing good deeds for others. Shortly after the battle, King Baldwin passes away, leaving Sybilla’s son, Baldwin V King of Jerusalem. Historical records indicate that Saladin did attack Kerak in 1183 and 1184, but was repelled by the Crusaders. (Wikipedia Siege of Kerak) In addition, King Baldwin IV did not pass away immediately after the Siege of Kerak, he passed away in 1185. Scott indicates a bias toward the Muslims in this part of the film; he depicts the Knights Templar and Raynald as warmongers and the film’s villains. Raynald and Guy are against peace between the Christians and Muslims. King Baldwin V’s reign over Jerusalem is temporary because Princess Sybilla euthanizes her son out of compassion, as she finds that he is also a Leper. This part of the film is fictional, King Baldwin V was not a Leper, but he did pass away in 1186, just one year after becoming King. (Wikipedia King Baldwin V) Sybilla crowns Guy de Lusignan as King and he immediately instructs Raynald to wage war against Saladin. Raynald and Guy lead the Knights Templar to battle against Balian’s advice. Saladin massacres the Raynald’s Army at the Battle of Hattin and personally beheads Raynald. This was Saladin’s plan all along; he knew Guy and the Knights Templar would attack first. After Balian survives an assassination attempt ordered by Guy, he joins Tiberius in Jerusalem which is now virtually defenseless against Saladin’s Army. By showing the aftermath of the Battle of Hattin, that God has punished an evil man and his followers’ belligerent actions with death, Scott reinforces the films primary theme of encouraging peaceful coexistence between religions and sub-theme, that doing good deeds for others is being religious. Tiberius and his men abandon Balian and the people of Jerusalem, leaving no Knights to defend the city. This part of the film shows how Balian’s values have changed during the film. Before Balian left on his Crusade, he had lost faith in religion and himself, and now he is a confident and selfless leader, who stays in Jerusalem only to “defend the cities people.” (Kingdom of Heaven 2005) Scott shows a bias toward the Christian point of view in the film’s final scenes and audience should feel a strong sympathy to the Christians as they are defending innocent people. In preparation for the battle with Saladin, Balian Knights many of the villagers to improve morale. Balian is outnumbered by Saladin’s men and his only hope is to protect the city long enough to force Saladin to make a deal to protect the people of Jerusalem. Balian and his men successfully withstand a barrage of bombs from Saladin’s Trebuchets and attacks from his Army for three days. During the battle, Balian is a successful Commander, although he is injured while fighting with a Muslim. On the third day, Saladin is able to breach Jerusalem’s walls overpower Balian’s men. Balian is able to negotiate the peaceful surrender of Jerusalem with Saladin only because he threatens to destroy the city and all religious artifacts, both Muslim and Christian if the battle continues. This scene is based in fact as records indicate that Balian de Ibelin did negotiate the surrender of Jerusalem to Saladin, but that Saladin was offered a ransom for all Christians to leave Jerusalem unharmed. (Wikipedia Balian de Ibelin) The film ends with Balian and Sybilla in the remote French Village where the story began. King Richard of England and his men ride along searching for the “defender of Jerusalem” and Balian replies, “I am a blacksmith.” (Kingdom of Heaven 2005) Ridley Scott conveys his primary theme with his final message that “Nearly a thousand years later, peace in the Kingdom of Heaven remains elusive.” Throughout the film we see evidence that Scott is promoting peaceful coexistence between religions. King Baldwin IV states, “A man must choose to do good deeds instead of evil” and “Your Soul is in control of your own.” Balian consistently supports this theme by resisting violence, by refusing to fight over his horse, releasing Guy de Langston after the final duel and many other times during the film. Ridley Scott has disguised Kingdom of Heaven as a visually pleasing historical action film; Scott wants his audience to realize the futility of war and the value of peaceful coexistence between all religions. http://blogcritics.org/video/article/movie-review-kingdom-of-heaven1/ Maalouf, Amin. 1984. Crusades Through Arab Eyes. Online E-Reserve Edition. London: Al Saqi Books. Kingdom of Heaven: Directors Cut Edition. 2005. Directed by Ridley Scott. 189 Min. Century City, CA: 20th Century Fox. Blu-Ray.
GF 530 Purdue University Global Unit 6 Financial Reporting and Analysis Questions
GF 530 Purdue University Global Unit 6 Financial Reporting and Analysis Questions.
11.5 Nondiversifiable and Diversifiable Risk Factors. Identify the types of firm-specific factors that increase a firm’s nondiversifiable risk (systematic risk). Identify the types of firm-specific factors that increase a firm’s diversifiable risk (nonsystematic risk). Why do expected returns models include no expected return premia for diversifiable risk? 11.6 Debt and the Weighted-Average Cost of Capital. Why do investors typically accept a lower risk-adjusted rate of return on debt capital than equity capital? Suppose a stable, financially healthy, profitable, tax-paying firm that has been financed with all equity now decides to add a reasonable amount of debt to its capital structure. What effect will the change in capital structure likely have on the firm’s weighted-average cost of capital? Chapter 12 12.2 Free-Cash-Flows-Based Valuation Approaches. Explain the theory behind the free-cash-flows valuation approaches. Why are free cash flows value-relevant to common equity shareholders when they are not cash flows to those shareholders but rather are cash flows into the firm? 12.6 Valuation When Free Cash Flows Are Negative. Suppose you are valuing a healthy, growing, profitable firm and you project that the firm will generate negative free cash flows for equity shareholders in each of the next five years. Can you use a free-cash-flows-based valuation approach when cash flows are negative? If so, explain how a free-cash-flows approach can produce positive valuations of firms when they are expected to generate negative free cash flows over the next five years. Chapter 13 13.2 Required Income. Explain required income. What does required income represent? How is required income conceptually analogous to interest expense? 13.6 Interpreting Residual Income. If a firm’s residual income for a particular year is positive, does that mean the firm was profitable? Explain. If a firm’s residual income for a particular year is negative, does that mean the firm necessarily reported a loss on the income statement? Explain. What does it mean when a firm’s residual income is zero?
GF 530 Purdue University Global Unit 6 Financial Reporting and Analysis Questions
Deanza College Harmful Effects of Genetic Conditions Film Discussion Paper
Deanza College Harmful Effects of Genetic Conditions Film Discussion Paper.
Please read through the Film Discussion 1 lecture slides before viewing the films (important background information is included).https://drive.google.com/file/d/1roO8v1FxxCm7up6huPiJTHS3p_DzTsMz/view (Sound and Fury)https://drive.google.com/file/d/1GvBtqr8VDKIOmDk3y… (The Eye of the Storm)Answer the following 4 questions in 2-3 sentences each:Sound and FuryIf we have the ability to minimize harmful effects of genetic conditions, does this mean that natural selection will no longer affect our species? Do you believe it is inappropriate to treat deafness as a disability? Is deafness medicalized?The Eye of the StormWhat insights did you gain from this film?What do you think might be the strengths/weaknesses of her approach, compared with other methods of trying to improve race relations?
Deanza College Harmful Effects of Genetic Conditions Film Discussion Paper