MOD3CaseOPM300

MOD3CaseOPM300 - Touro University Richard Gonzalez OPM 300...

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Touro University Richard Gonzalez OPM 300 Module 3 Case Dr. George Marron
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Module 3 Case For this paper, I was assigned to read the article, “Chrysler Averts a Parts Crisis” by Jeffrey Ball. After reading this article, I will discuss how does Just In Time (J-I-T) Systems minimize warehousing costs? How does it minimize quality problems that can result when parts sit around for a long time? Additionally, I will discuss J-I-T and its implications for Global Operations Management as brought out in this Chrysler experience. Just in time systems or J-I-T, are manufacturing systems, in which parts are delivered to assembly plants every few hours in small batches, instead of being dropped off less frequently in big piles. This system looks for ways to minimize warehousing costs that can result when lots of parts sit around for a long time. One big part of the J-I-T system is that it works only when the trains, trucks, boats, and planes carrying parts to factories run precisely on time. If there is a disruption in the transportation part of the equation, it can jeopardize the smoothness of the process. According to the article by Jeffrey Ball, during the first hours after the September 11 attack, the efficiency of J-I-T was in trouble. Trucks carrying parts intended to keep Chrysler’s assembly lines running got stuck in lines for up to 18 hours due to heightened security at the U.S.-Canada border. These disruptions caused assembly-line shutdowns that lasted for several hours at the company’s assembly lines. Companies other than Chrysler faced assembly lines
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MOD3CaseOPM300 - Touro University Richard Gonzalez OPM 300...

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