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YIELD MANAGEMENT AT NATIONAL CAR RENTAL
Faced with possible liquidation in 1993 by General Motors, its parent company, National Car Rental was under significant pressure to produce both a substantial and sustainable profit. To accomplish this, management decided to adopt a comprehensive revenue management system. Instead of a constant car rental price all the time, the revenue management system demonstrated th
JIT in Services
Service organizations and service operations within manufacturing firms present interesting opportunities for the application of JIT concepts. Despite the many differences between service and manufacturing, both share the most basic attributes of production. because they employ processes that add value to the basic inputs with the objective of creating an end product or service. JIT focuses on
Concurrently Solve Problems and Measure Performance
A JIT application is not an overnight. turnkey installation. Rather, it is an evolutionary process that is continually seeking ways to improve production. Improvement is achieved by looking at problems as challenges rather than threats-problems that can be solved with common sense and detailed, rigorous analysis.The techniques for problem-solving are primarily
JIT Layouts Design Flow Process
J IT requires that the plant layout be designed to ensure balanced workflow with a minimum of work in process. This means that we must view each workstation as an integral part of the overall production line, whether or not a physical line actually exists. Capacity balancing is done using the same logic as for an assembly line, and operations are linked through a pull system (des
JIT IS INTEGRAL TO SATURN’S SUCCESS
When Genera! Motors announced the Saturn project, its goal was very clear: to recapture the sn1~II-car market from
the Japanese. To accomplish this, GM incorporated many new and innovative concepts in designing Saturn’s manufacturing facility in.Spring Hill, Tennessee. For example, much higher percentage of the components are produced n-site instead of at a rem
Implementing JIT Production
In this section. our objective is to explain how to accomplish liT production. To structure our discussion we follow the steps given in Exhibit 14.10, expanding on some of the ideasQuality Circles Another interesting technique, with which many Americans are already familiar, is quality circles. The Japanese calJ them small group improvement activities (SGIA). A quality circle is a g
JIT in the United States
JIT evolved in Japan in great part due to the unique characteristics of that country. Japan is a very small country in area. Distances between most of the major are. therefore, relatively short. In addition, a large proportion of its geographic area i” mountainous, Consequently, most of Japan’s population lives in a relatively “mall area. space at a premium. In ad
Focused Factory Networks
The fir« decent is focused factory networks. Instead of building a large manufacturing plant that docs everything (i.e a highly vertically integrated facility), the Japanese build small plants that are highly specialized. There are several reasons for doing this. First. it’s very difficult to manage a large installation: the bigger it gets. t e more bureaucratic it gets. The Ja
The Japanese Approach to Productivity
To fully appreciate the elements of Big JIT. it is useful to re, view the history and philosophy of its application in Japan. The ability of Japanese manufacturers to in high quality. low-co t production. which publicized in the 70~ and e.irl, 1980s . . till holds despite their current economic problem” Indeed. the Japanese ,till retain the market dominance in tel
JIT Logic
JIT (just-in-time) is an integrated et of activities designed to achieve high-volume production using minimal inventories of raw materials. work in prices. and finished goods. Parts arrive at a subsequent workstation “just in time” are completed and move through the operation quickly. Just-in-time is also based on the logic that nothing will be produced until it is needed. Exhibit 14.1 t
