Writing a case study on the world's most prominent automobile manufacturer strategy is no simple task. Toyota, the Japanese Car Giant, employs the Just-In-Time management strategy to streamline its operations.
If you are looking for kia motors case study, this write-up can assist. It explores Toyota's JIT strategy in precise detail.
Understanding The Just-In-Time Strategy At Toyota
The founder of the Toyota Motor Corporation, Kiichiro Toyota, was THE first person to opine that the best way to excel in assembly-line manufacturing is by having all to-be assembled parts right at the side of the line, just in time for use.
Just-in-time is an inventory Investment Management Assignment Help strategy for procuring materials AS they are required during production. It allows Toyota to do away with a bloated inventory. Toyota’s JIT strategy involves devising a system of production control that enables them to minimize raw material & work-in-progress inventories.
The key benefits of Toyota’s Just-In-Time inventory management strategy are:
JIT purchasing allows the how to Write Assignment company to match the acquisition of materials with their usage closely with usage. As a result, the stock inventory reduces to a near-zero level. Proper implementation of JIT strategy involves developing a closer relationship with suppliers and arranging effective & frequent deliveries of materials.
Toyota’s implementation of the JIT inventory management strategy resulted in a lean manufacturing process, enormous saving in storage & material handling costs, and a drastic reduction in spoilage & obsolescence. In addition, long-term arrangements with suppliers also allow saving of ordering costs and elapsed time.
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