Just in Time and Lean Manufacturing:
JIT enables companies to uplift efficiency standards, enhance quality and boost productivity through decreasing materials’ waste, improving production efficiency in addition to decreasing production’s associated time and effort. Accordingly, and in order to execute this philosophy, then Kanban system shall be presented to guarantee that the company is operating its SC both expertly and efficiently. The part taken care by Kanban is to bond diverse manufacturing procedures jointly, decrease work in progress, maintain low cost of operations in addition to minimize lead and setup times (Wang & Sarker 2004).
Manufacturing Resource Planning:
MRP as a core module within ERP systems helps in substituting complicated and manual connections amongst diverse corporate functions and systems, with the main benefit is in decreasing the headcount in finance and the operating capital. Moreover, the entire business data is assembled for one time throughout the preliminary initiation, then saved centrally, to be consequently amended on instant basis. By that, business can guarantee that all stages of scheduling are grounded on the exact data, and that the subsequent procedures accurately replicate the dominant operating circumstances of the company. Additionally, system generated reports offer executives with a holistic sight of business’s health in different areas of the company, which can be utilized to recognize required enhancements and take benefit of market prospects (Hendricks et al. 2007).
My Position from Both Approaches:
Following the earlier discussion, MRP can be positioned as a technology that permits for an astonishing level of progressive planning for cases that can be found in companies with high-volume production or even with relatively average inventory (Aggarwal 1985). However, is seen by many as a standout amongst the most costly methods for gaining zero or at least a negative ROI. The execution is quite expensive; signaling one of the top issues with the MRPs’ rollout. Where every implementation is subject for medium to heavy levels of customization, which will go in parallel with recognizing its consequences on the company, in addition to the exhausting part of training the employees to effectively use it (Slack 2014).
While on the other hand, JIT preserves low inventory expenses and includes workforce, yet necessitates excellent structure of supply lines and supportive employees (Aggarwal 1985). Nevertheless, there is a general observation concerning a major hindrance towards JIT’s full adoption in the SME organizations, which is usually due to their less accessibility to needed assets. While in the case of giant corporations, then the case is different, due to their better positioning in terms of their financial status as well as the volume and skills of their workforce (Bayo-Moriones et al. 2008).
Possibility of Forming a Hybrid Setup:
Some studies can be found describing the connection between JIT and ERP as so close leading to consider JIT as part of some ERPs. In line with that, (Cagliano & Spina 2000) and through their review to the subject, realized that companies with desire to gain the most possible improvement out of their business operations are highly advised to consider the hybrid adoption between both, the ERP (technology) and JIT (philosophy). Their justification was built on studies that proved where sole dependence on technology, or excessive usage of it, would most likely not improve the overall performance, but rather with the combined usage of technology and process enhancement that will eventually end up with bigger influence. Where the technology can bring operational discipline and relatively better handling of process changes. While the philosophy will offer a reliable and robust supporting framework (Bayo-Moriones et al. 2008).
Aggarwal, S.C. (1985) ‘MRP, JIT, OPT, FMS?’, Harvard Business Review, 63, 5, p. 8, EBSCOhost, [Accessed on April 29 2017].
Bayo-Moriones, A., Bello-Pintado, A. & Merino-Díaz-de-Cerio, J. (2008) ‘The role of organizational context and infrastructure practices in JIT implementation’, International Journal of Operations & Production Management, 28 (11), pp. 1042-1066, [Accessed on April 29 2017].
Cagliano, R. & Spina, G. (2000) ‘Advanced manufacturing technologies and strategically flexible production’, Journal of Operations Management, 18, pp. 169-190, ScienceDirect, EBSCOhost, viewed 29 April 2017.
Hendricks, K., Singhal, V. & Stratman, J. (2007) ‘The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations’, Journal Of Operations Management, 25, pp. 65-82, ScienceDirect, EBSCOhost, [Accessed on April 29 2017].
Slack, N., Brandon-Jones, A. & Johnston, R. (2014) Operations management. 7th ed. Harlow: Pearson Education.
Wang, S. & Sarker, B. (2004) ‘A Single-Stage Supply Chain System Controlled by Kanban under Just-in-Time Philosophy’, The Journal of the Operational Research Society, 5, p. 485, JSTOR Journals, EBSCOhost, viewed 29 April 2017.