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1. Just-in-Time (JIT)
Is the philosophy that activities are undertaken only as needed or
demanded. JIT is a production system also known as pull-it-through approach,
in which materials are purchased and units are produced only as needed to
meet actual customer demand. In JIT system, inventories are reduced to
minimum and in some cases, zero.
Four Characteristics:
1. Elimination of all activities that do not add value to the product or service
2. Commitment to high level of quality
3. Commitment to continuous improvement in the efficiency of activity
4. Emphasis on simplifications and increased visibility to identify activities that
do not add value
Main benefits:
3. Process Reengineering
1. Process is simplified
2. Process is completed in less time
3. Costs are reduced
4. Opportunities for errors are reduced
Problem: employee resistance.
5. Mass Customization
6. Balanced Scorecard
a. Financial performance
b. Customer satisfaction
c. Internal business process
d. Innovation and learning
It captions the intent of broad coverage, financial and nonfinancial of all the
factors that contribute to the success of the firm in achieving its strategic
goals. The use of the balanced scorecard is thus a critical ingredient of the
overall approach that firms take to become and remain competitive.
The entity using target costing must often adopt strict cost- reduction
measures to meet the market price and remain profitable. This is a
common strategic approach used by intensely competitive industries
where even small price differences attract consumers to the lower-
priced product.
12.Automation
Involves and requires a relatively large investment in computers,
computer programming, machines and equipment. Many firms add
automation gradually, one process at a time. To improve efficiency and
effectiveness continuously, firms must integrate people and equipment
into the smoothly operating teams that have become a vital part of
manufacturing strategy.
A. Enhance quality
B. Reduce cost
C. Increase output
D. Eliminate delays in responding to customers
Major Findings:
Value- refers to the increase in the usefulness of the product or services and
as a result its value to the customer.
2 types of linkages:
1. Internal are relationships among activities that are performed within a
firms portion of the industrial value chain.
2. External linkages- activity relationships between the firm and the firms
suppliers and customers.
3. Key success factors (cost and efficiency, quality, time and innovation)
Computer-Integrated Manufacturing
Time-Based Competition
Global Competition
CAUSES: