HARLEY DAVIDSON

Harley Davidson

Harley Davidson

Harley Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks. Each truck trip costs $1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Each engine costs $500 and Harley incurs a holding cost of 20 percent per year. Harley should load 100 engines in each truck. Harley has decided to implement Just in Time (JIT) at the motorcycle assembly plant. As part of this initiative it has reduced the number of engines loaded on each truck to 100.

"One of the matters in consignment (and production) is the use of just-in-time (JIT) perform" (Ansari & Modarress 1988, 19-26). This perform is intended to decrease inventory, therefore eradicating charges and waste. For demonstration, less storage and warehouse space is needed. This performs decreases the essential overhead and asset utilization required to organize this inventory. JIT appears to be an environmentally sound perform, yet when advised general, the ecological savings can be deceptive. For demonstration, the foremost procedure to reduce the allowance of inventory is to consign and make in little batches. These lesser batches signify more deliveries, therefore lifting fuel utilization and traffic congestion. Investigation of these trade-offs is still happening in the publications and needs considerably more enquiry before agreement can be reached. But some of these matters are mitigated with such practices as on-site suppliers or those that are in close proximity for JIT reasons. Another component associated to JIT and supplier administration is that fewer suppliers are generally utilized in a JIT environment. This entails better forecasting and fuller burdens could be planned. Of course, this consignment set about will be reliant on demand grades and characteristics.

JIT signifies a relentless seeks for waste decrease and to make only what is required "just in time" (Inman & Mehra 1991, 16-20). It is a notion that has been often encouraged and has captivated companies and their bosses in numerous distinct industries. Its inherent values have been broadly applied in the world-wide automotive industry. By numerous practitioners, and some scholars, JIT has been considered as an innovative and new-to-the-world concept. Like numerous other latest managerial notions, JIT is pain from the nonattendance of origins in literature. The target of this item is thus to recount the chronicled evolution of JIT in text from the starting of the twentieth century. The contents of ...