JUST-IN-TIME SYSTEMS

Just-in-Time Systems

Just-in-Time Systems

1) How does JIT and Lean processing affect managerial decision-making in that organization?

The term 'Lean' is used to describe a production system that is used by various companies on a global scale for instance such companies as Nike, INC and NPP have adopted lean tools to better the functioning of their processes. The concept itself originates from the Toyota Company where they developed the 'Toyota Production System' post World War 2. The concept has developed since then and when implemented encourages companies to achieve more with less resource used and so the concept ultimately encourages companies to eliminate their wastage. Various academics have expressed an opinion on 'Lean Thinking' and the ability to 'Banish Waste and Create Wealth in your Organization' (Rosalind, 1995).

One company that has applied the lean process successfully is Nike Inc. and they adopt the strategically focused view that a key tool of lean manufacturing is human resource management (HRM) itself. In a highly competitive market it can prove extremely advantageous for a company to introduce the 'Lean Manufacturing process' however this may cause implications that must be tackled from a strategic HRM perspective. By introducing a process such as this, cultural and fundamental change is inevitable, this process will change the role of departments and people at all levels of the organization and there are strategic HRM issues that a company must consider to implement this fundamental change.

Although difficulties may arise, this transition can also be seen as an opportunity as it 'can offer personnel practitioners and business managers an opportunity to assess areas of potential synergy between their lean processes and their people policies'. Human Resource Management has transitioned to take a more strategic focus in modern business, employees are no longer a cost but defined ...