In what way could you improve this process? Just in time is a process in which stock is delivered and placed on the production line in time for the next unit. For stock to be received on time, it is important that stock ordered in this way, is prioritised. It may be a simple process of giving security a report which tells them when the stock is due to arrive. Security can look at the invoice when the stock is delivered and should direct the truck driver straight to the delivery location, where a fork lift is waiting to deliver the stock on time. What are the advantages of the new process? f Costs: If the truck driver in the original scenario could not find anyone to help him and the stock was necessary for ongoing production, then the production line may have been stopped if the part was central or time would have been lost rotating the stock back onto the line for production to continue. The production line may not be able to recoup the time lost. f Productivity: This would have decreased productivity, so this means that the organisation may need to be late with the delivery of their order. The new process is geared towards decreasing costs and ensuring that productivity is increased by decreasing the number of out of stocks that occur. When you see this type of discrepancy, it is important for you to identify what the problem is. You also need to see the benefits of implementing new processes. If you change any processes in your work area, make sure that any department that is going to be affected by the change is advised about it. Factors affecting output and quality An increase in output can be caused by: f Technological change: A new machine may increase production f Economic change: A decrease in orders will decrease the amount of units to be produced. This in turn, will decrease the number of people the organisation will employ. Conversely, an economic boom will affect the increase in demand and mean that more staff will need to be employed f Management trends: People working together as a part of a team means that workers will be able to work together to find resolutions.
52 WORKBOOK | © 2016 YOUNG RABBIT PTY LTD, AUSTRALIAN PACIFIC COLLEGE BSB51915 DIPLOMA OF LEADERSHIP AND MANAGEMENT | OPERATIONAL PLANNING_V2.4 f Political change: The new Fair Trade Agreements will open doors to outside countries to produce products in Australian. This agreement will stimulate competition, but will also open more of the world up as a potential customer base. Some organisations spend a lot of time improving their products and practices. In a competitive industry, being innovative can make the difference between having a competitive advantage over your competitors and going out of business. To improve your output, you are in effect increasing the quality of your service or product and improving your processes. For instance, finding a way in which to save time will ensure that things run more smoothly. On the other hand, you might need to improve a process that is not working effectively. You need to
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