Just in Time Approach in Inventory Management

2 world(prenominal) convocation ON BUSINESS AND scotch query (2 ICBER 2011) doing nd nd JUST IN TIME APPROACH IN INVENTORY centering Abdul Talib Bon (Corresponding author) Faculty of engineering circumspection, Business and Entrepreneurship Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia Tel +60127665756 E-mail emailprotected com Anny Garai Faculty of Technology focal point, Business and Entrepreneurship Universiti Tun Hussein Onn Malaysia, 86400 Batu Pahat, Johor, Malaysia Tel +60137016298 E-mail emailprotected com. y Abstract Quality forward motion and costs control atomic number 18 vital to organizations for work performance sweetening and fulfilling customers requirement. Inventories that are stored in large amount of quantities will result in fumble and space usage. One effective solution is utilise right in season (JIT) concept as a method to shrink costs, improve quality and meet the ever-changing customer needs. The adoption of h unmat chablest in Time (JIT) concepts seems to be the most effective style to batter these circumstances. JIT is counseling ism that emphasizes on eliminating waste and growing productivity.The main persona of this research is to find out whether the execution of JIT would garnish the inventories at Electronics share diligence especially at the parts producing stamping of FCM. This research is done by case study. Therefore the data collection would be using aidary data which is the documentation from FCM itself and alike via observation. The data were analyzed by doing the comparison originally and after the implementation of JIT using Microsoft words excel. From the analysis that had been done, the implementation of JIT had extendd the inventories management at the stamping parts production.As the conclusion, the implementation of JIT in the stock list management at the parts production stamping at Electronics character industry had successfully quash the inventories aim while improving the fund level. Keywords Stamping exertion, but in Time, blood line management, electronics ingredient industry. 1. Introduction Globalisation phenomena had created the business without boundaries. to the highest degree of the physical composition nowadays nevertheless focuses in two main elements that discharge determine the global market, which is customer satisfaction and also the product and go quality.Organisation all around the world need to take the initiative to increase the product quality to satisfy the needs and customer demand that constantly change besides minimizing the production cost. This initiative is needed to keep the challenge at the market (Canel, et al. , 2000). One of the most effective solutions is with the finish program of that in Time (JIT). covering of JIT could involve few important elements at organisation such as production level, marketing level, engineering level and purchasing level. The covering of JIT more f ocuses on management act upon.Therefore, JIT preempt be employ at varying process. (Canel, et al. , 2000). JIT is the concept of management that invented specially to evacuate waste. This is in order to minimize the waste and increase the productivity (Zhu and Meredith, 1995). JIT is one eccentric of go Manufacturing (Yen, 2003). tippytoe manufacturing is the process to control the production which thinks on the demand by the customers. It is also act to reduce waste. The occupation of flow Manufacturing can reduce the stock, work space and the production of raw somatics. This philosophical system can maximize the production (Forza, 1996).At Malaysia context, application of JIT is non popular. According to Simpson, et al. , (1998), JIT had been applied by national automotive firm as a ephemeral JIT. Transitory of JIT is one of the ad hoc inventory models. This is can suffer one-half of the inventory in order to reduce the production 2562 2 external assemblage ON BUSI NESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd cost beside can keep back the technology transfer at the international level. This research is do to study the application of entirely in Time (JIT) in inventory management at stamping production at Electronics component industry. 1. Background of Study At FCM there is lot type of inventories and this requires a huge space to restore it. Therefore FCM need to erect an equal space. How ever, this situation requires FCM to overcome the cost of restore. But this is not the really loose issues to FCM. What really worries FCM management is the huge batch of inventories. The batch of inventories had ca apply FCM passage in profit because there is no moving out of the railroad siding to customer. Therefore the cases are also not only arises due to this problem. overly that, in Japanese firm, the concept of keeping the inventory is a prominent waste in industry.Based on this problem, Heizer J. & Render B. (2006), moreover in Time (JIT) is the best strategy to increase the operation especially at the inventory management. However, if the raw material cannot be delivered during the production, there would be a big problem. 1. 2 Problem Statement This study is to elaborate the JIT application in inventory management at the stamping production at FCM. The problems that occur in this study are what is the importance of application of JIT in order to influence the inventory management at the stamping production at FCM? 1. Objective In this research, tec has the stand to achieve the intention so that it could be archived. The objective is to study the application of conscionable in Time (JIT) in inventory management at Stamping product at Electronics component industry. 1. 4 ground Of Study The scope of study is focused at the stamping production at Electronics component industry. The main products of FCM are keyboard and relays. Respondents that involved are top management and the staff at stamping pro duction of FCM. Data would be put in by means of qualitative method and be analysed quantitatively.From this study, the tec hopes that can help Electronics component industry on the applications of JIT in their operation. The research worker hopes that with this study, it can help Electronics component industry and academician which is up to the coming(prenominal) investigators. 2. Literature Review JIT is not the new concept in production sector (Stevenson, 2001). It started during 1920 and being used by Henry Ford at the automation industrial. JIT is one of the tenuous Manufacturing that had been introduced by Toyota Motor Corporation to increase the work quality and production.The application of JIT in Lean Production will give just damages in production process. These philosophies would make the production even faster and to reduce the inventories stock. 2. 1 Lean Production and Lean Manufacturing Lean Manufacturing beginning introduced as systematic ways to reduce or l and up the waste. It is the management philosophy that require commitment from responsible person that relate with reduced waste, make the work procedure become smooth and optimize the production (Chase, et al. , 2001). Lean Manufacturing firstly introduced by the Toyota Motor Corporation.Which is involved the inventory management, quality control, industrial relationship, 2563 2 INTERNATIONAL convocation ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd employee management and relationship amid mill and the suppliers (Bowen and Youngdahl, 1998). JIT is one of the elements in Lean Manufacturing meanwhile Lean Production is cognise as Big JIT. It is the philosophy of management operation that act to terminate the waste in every aspect in production such as industrial relationship, vendor relationship, technology, raw material management and inventories (Chase, et al. 2001). Lean Production can use to reduce prison term, inventories, space, employees and productio n cost. 2. 2 Just In Time (JIT) Usually, JIT process being implemented in the organisation that reached the highest application of JIT. Wagner M. S and Silveira- Camargos V , 2009). This is because organisation and the supplier should have a practised relationship and believe because when there is demand from factory, the suppliers can fork up them on time. The first way to implement JIT is build a good relationship with the suppliers, customers and also sub-contractor to reduce inventory buffer to few hours.According to Canel, et al. , (2000), JIT aims is to reduce time waiting during production process. Therefore, the cost of inventories not only can be minimized but also the time for the production also shortens. JIT concept is not saying near the shopwornisation or the way of managing but it really focusing on the zero inventories 2. 3 Benefits of Application of Just In Time in Lean Production The application of JIT would give a lot of gathers such as to the producer to inc rease the quality to fulfil the customer demands and reduce the inventories and built a good relationship with the supplier (Salaheldin, 2005).Positive of JIT application can successfully give benefit to three communities, which is supplier only, purchased only or both. The benefits are, reducing in inventories and time waiting for the inventories, increase the quality and technical support, increase productivity, reduce waste and machine bread and butter (Wafa, et al. , 1996). JIT actually help to reduce machine maintenance and at the same time, to make sure the suppliers can produce the inventories on time (Yasin, et al. , 2001). According to Yasin, et al. 2002), the big problem of JIT application is employer issues and the suppliers. Employer issue is about the objection of JIT concept, less supportive of JIT and less of employees. 3. Methodology This study is using action research that is descriptive and makes the research by quantitative. In this study, researcher would use ob servation and data collection from the result of the observation. 4. Data compendium 4. 1 Introduction This chapter would discuss and analysis the data that had been collected from FCM.There are four different data that had been provided by the researcher tally to the case. For the first case, the researcher would get the metre time during the raw material collected from the rack and the re indicate at the turn table using forklift. The second case is the machine die setup. Meanwhile the third case is standard time for winding process. The time is counted during the winding process and the material place at the stand in the beginning and after the winding process. For the last case, is during pugilism and deliver the part to the warehouse.This chapter also would discuss about type of psychometric test and analysis to the case to make sure that the data is valid and researcher can get a clear vision about the elements of Just in Time (JIT) being implemented by the FCM. 2564 2 IN TERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd 4. 2 Results of Study In this study, researcher would discuss the results that researcher gets from the study. All the data that had been collected by the researcher would be divided according to the case and according to the flow chart of stamping production rival to material body 1. regard 1 shows Standard Time (ST) and Cycle Time (CT) according to the cases that had been studied. ST = 10. 8 min CT = 10 times ST = 480 min ST = 5. 37 min ST = 17 min KES 1 KES 2 KES 3 KES 4 Raw Material Stamping dish up Winding Packing Warehouse ensure 1 Stamping Flow Chart 4. 2. 1 abstract of lineament 1 This section would show the data collected from case 1 for the application before and after the part production stamping. In this case 1 (refer Figure 2) the standard time would be the counting from the raw materials from the racks to the lazy Susan using forklift and then the return back of the forklift to the place.Refer from Figure 3 as shown the graphs for before and after the applications of JIT for case 1. ST/CT Raw Material Stamping Process Figure 2 Case 1 2565 2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd Figure 3 graph Before and later Application of JIT (Case 1) 4. 2. 2 Analysis of Case 2 For case 2, (refer Figure 4) is to reduce the standard time that is using for die setup. Figure 5 showed the graph before and after application of JIT. . ST Stamping Process Figure 4 Case 2 Winding 2566 2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING d nd Figure 5 Graph Before and After Application of JIT (Case 2) 4. 2. 3 Analysis Case 3 For case 3, (refer Figure 6) is to reduce standard time for winding process. Figure 7show before and after application of JIT for Case 3. ST Winding Figure 6 Case 3 Packing 2567 2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd Figure 7 Graph Before and After Application of JIT (Case 3) 4. 2. 4 Analysis Case 4 For case 4, (refer Figure 8) is to reduce standard time during packing and deliver to warehouse. Figure 9 show the application of JIT before and after. ST PackingFigure 8 Case 4 Warehouse 2568 2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd Figure 9 Graph Before and After Application JIT (Case 4) 5. close The purpose of this study is to make sure the application of concept Just In Time (JIT) at Electronics component industry especially at the stamping production. This chapter would discuss about the results of the analysis according to the objective and problem statement. The reciprocation would focus in certain case at stamping production compute of the results that analyze from before and after the application of JIT.Besides that, this chapter also would discuss the suggestion. After the analysis, application JIT in inventory management at stamping production is depend on the activities below (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Raw material always in enough quantities. Work in process always at the minimum quantities. stainless good would directly deliver to buyers. Wasting work in process seldom occur. Buffer stocks always at the minimum quantity. Delivering raw material depends on demand only. Space for inventories is small. Time table scheduling is made by the suppliers.Delivering materials is more often and only at small size. 2569 2 INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH (2 ICBER 2011) PROCEEDING nd nd (x) (xi) (xii) Long term relationship is built between suppliers. Suppliers is advised to use the application of Just in Time (JIT) , and The employers should give the commitment on inventories and quality. Besides that, researcher has little suggestion to the upcoming interested researchers with the concept of Just in Time. The suggestions are (i) this research only limited at one factory w hich is Electronics component industry.The next researcher should broaden their scope of study (ii) Future study on the application of JIT concept especially in the purchasing and engineering level and advance study about the elements associated with JIT. References Bowen, D. E. & Youngdahl, W. E. (1998). Lean Service In Defence of A Production-Line Approach. International Journal of Service Industry Management. 9(3). 207-225. Canel, C. , et al. (2000). Just-in-time Is Not Just for Manufacturing A Service Perspective. Industrial Management and Data System. 100(2). 51-60 Chase R. B. , et al. (2001). Operations Management for Competitive Advantage. th ed. N. Y. McGraw-Hill. 394-417. Forza, C. (1996). Work Organization in Lean Production and Traditional Plants What Are the differences?. International Journal of Operation and Production Management. 16(2). 42-62. Salaheldin, S. I. (2005). 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