harley-davidson-JIT[3]

harley-davidson-JIT[3] - Harley Davidson-JIT 2011 BMO6508...

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Harley Davidson-JIT 2011 BMO6508 Operations Management Lecturer: Dr Nick Billington Assessment, Research Operations Report (JIT), Just-In-Time Manufacturing on Harley Davidson By: Benjamin Bloom S3574323 Date: 7 th April 2011 1 | P a g e
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Harley Davidson-JIT 2011 Contents Abstract…………………………………………………………………………. .3 JIT Principles…………………………………………………………………….3/4/5 Risk……………………………………………………………………………….5 Inventory Management…………………………………………………………7/8 Supply side & Economic Scenario……………………………………………………….9 Summary………………………………………………………………………. .9 References………………………………………………………………………10 2 | P a g e
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Harley Davidson-JIT 2011 Abstract The strength of Harley-Davidson's brand and dominant market position give the firm a wide moat, in our opinion. However, weaker consumer spending and tight credit markets are presenting the firm with some significant near-term challenges. In addition, we believe the firm must carefully broaden the appeal of its brand to secure its long-term success. Harley-Davidson is a cult brand that resonates around the world. There are more than 1 million members of the Harley Owners Group, and every year several hundred thousand Harley fans attend biking events at Daytona, Fla., and Sturgis, S.D. It's no wonder that over 50% of Harley's revenues are generated from repeat sales and these sales are at premium prices to other motorcycle brands. In addition, with almost a 50% share of the U.S. market, Harley also achieves economies of scale greater than most of its competitors. A Harley is not just a bike it is an investment. brand loyalty, its economies of scale, and its network of mostly exclusive dealers have created significant barriers to entry, and as a result, Harley has achieved historical operating margins of over 20% and returns on invested capital of over 40%, excluding the financial services segment. JIT Principles 3 | P a g e
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Harley Davidson-JIT 2011 JIT is an operational strategy which helps in making inventory levels lean. An organisation which goes for synchronous manufacturing incorporates JIT to have lower inventory levels. Synchronous manufacturing encompasses techniques of JIT to achieve the target. Organisations which have implemented JIT and are using synchronous manufacturing have a very lean system. It has minimum wastage and the highest possible quality. These organisations are cost effective and generally have higher margins than their competitors. This results in higher level of efficiency in the organisation and a better work environment. BPI helps in management of inventory and related operations. It is very important that organisation understand the
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harley-davidson-JIT[3] - Harley Davidson-JIT 2011 BMO6508...

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