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Relationships particularly between labor and

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relationships, particularly between labor and management. Managers cannotmandate genuine and meaningful respect.
Benefits of JITJIT in ServicesImproved Quality- Service quality is often measured by intangible factors such as timeliness,service consistency, and courtesy. Building quality into the process of service delivery andimplementing concepts such as quality at the source can significantly improve service qualitydimensions.Uniform Facility Loading- The challenge for service operations is synchronizing theirproduction with demand. Many service firms have developed unique ways to level customerdemand in order to provide better service responsiveness.Use of Multifunction Workers- The use of multifunction workers in service organizationshelps improve quality and customer responsiveness. An example of this is seen in departmentstores, where workers make sales, clean sales areas, and arrange displays.Reductions in Cycle Time- Competition based on speed is common in services, as can be seenin such companies as McDonald’s, Wendy’s, FedEx, andLensCrafters. These companies haveused JIT concepts to reduce their cycle time and, consequently, increase their speed.Minimizing Setup Times and Parallel Processing- The concept of setup time minimization andparallel processing can be seen in cleaning companies. Merry Maids is a cleaning companythat uses teams of workers to clean homes. Each member of the team is designated to carryout a specific category of cleaning tasks. For example, one worker may be responsible for allthe dusting, another for all the bathrooms, and another for the vacuuming. This minimizessetup time, and parallel processing reduces the cycle time.Workplace Organization- Improved housekeeping has become a priority for many serviceorganizations, particularly since the customer is present during part of the production process.Service companies like Disney and McDonald’s pride themselves on the cleanliness of theirfacilities.
JIT and Lean Systems across the OrganizationAccountingis strongly affected by JIT. Traditional accounting systems generally allocateoverhead on the basis of direct labor hours.Marketingplays a large role in JIT, as the interface with customers becomes moreimportant. JIT focuses on customer-driven quality, not quality as defined by the producer.Financeis responsible for approving and evaluating financial investments. Switching to aJIT system proves financially beneficial in the long run but generally requires an investmentin resources. Included are hiring consultants, training workers, purchasing or modifyingequipment, more record keeping, and rearrangement of facilities. Finance must evaluatethese investments and measure their performance, which requires an understanding of JIT.

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Term
Winter
Professor
N/A
Tags
Management, Process capability

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