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Advantages of Globalization

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Future of JIT

If we really look internationally then we can very well judge that behind all MNC's success there is a just a smart management which have used tactics like JIT, and now we can see the difference just note if you can recall any 1 Pakistani international brand? We all will answer no, and the main reason implementing policies like this will make us compete in international market.

Mr. Sajid Ali, managing director BASF, says if we closely focus on JIT it basically eliminates some wastes like

Waste from Overproduction Waste of waiting/idle time

Transportation Waste Inventory Waste

Processing Waste Waste of Motion

Waste from Product Defects

He says, " Despite plant shutdowns caused by parts being stalled in the West Coast docks dispute, manufacturers using just-in-time (JIT) delivery say they'll stick with it. It's a matter of the good far outweighing the bad.

We can admit that JIT is some how difficult for Pakistani firms to implement but that is what is required for future, because some how we are use to of such a "SETH type" environment that it is difficult to change their mentality and after looking west after many plants closure so many CEO's abroad clearly admit by saying "Admittedly this was a problem, and it was a glaring one, but we are not going to abandon a successful system for what was an aberration," says Michael Damer, manager of community relations for New United Motor Manufacturing Inc., (NUMMI), Fremont, Calif.

JIT delivery, in which plants receive frequent deliveries of parts and materials in small lots timed to production, has saved manufacturers millions of dollars in inventory carrying costs. But the logistics turmoil of the Sept. 11 terrorist attacks and this fall's labor disputes on the western waterfront exposed a problem with JIT -- with little or no materials on hand, plants can be immediately idled by delayed deliveries.

NUMMI, for instance, shut down its truck line for five days and its car line for two days, amounting to the delayed production of 1,800 cars and 3,000 trucks. Normally, the plant receives 34 containers of supplies daily at the Oakland, Calif., port from four shipping lines. The materials and parts are for the current-day's production. A Dana Corp. plant in Stockton, Calif., that supplies frames to NUMMI also shut down, and Honda of America Manufacturing Inc. temporarily idled several plants in Ohio and Canada as a direct result of the port closures and alleged slowdown.




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