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Affan S Wijaya / 19015126

Name of Author : Gary J. Summer and Christopher M. Scherpereel

Full title of article : Decision Making in Product Development

Full title of journal :-

Year published : 2008

Volume number : Volume 46, No. 9

Hypotheses :

What is the paper setting out to prove ?

From the journal about, the journal wants to prove how MRP effect the decision making on
developing the product.

Are research hypotheses supported ?

Yes, the research hypotheses are supported because from the journal above the decision is affected
several factors through MRP and JIT method.

What is the theoritical position and key literature underlying the research ?

The theoritical position that underlying the research are come from Decision Making Theories, MRP
Theories, and JIT Theories. The decision making affect business systems is to gain insight, we
compared MRP with JIT. The comparison revealed contrasting qualities of each system. We asked
whether these sets of qualities were unique to MRP and JIT or consequences of a more fundamental

Type of theories ?

The type of theories is called implemented theories, because of MRP theories are implemented
before we make a decision to choosing the material and there are several factor that affected the
material itself. For the JIT theories are implemented usually on inventory management and logistic

Which research method are used ?

From the journal above, the research method is qualitative because they do the research by
implement it on several conditions and they also do the research using several type of approaches.

What kind of sample is used ?

They use analysis for the kind of sample by doing a comparison and implementation of the previous
theories in order to know the correlation between decision making, MRP, and JIT theories.
Key results ?

The propose that there are consequences of a companys approach to decision making. Specifically,
they arise from outside-in and inside-out approaches to decision making.

Key conclusions or recommendations ?

There are 2 approaches that affect to the decision making on the journal above. First, is the outside-
in approach to decision making in systems emphasizes level 1 type decisions by seeking more
powerful decision methods. Second, is the inside-out approach to decision making in systems uses a
pull mechanism to identify problems. The problems are then resolved by modifying the system to
constrain decisions.

Strength of the research :

MRP uses a scheduling algorithm that includes enough variables, relationships, and
information to explicitly model production. MRP strives to make the best trade-off. After the
plan is created, MRP sends the plan to the factory where it is implemented. This approach
separates the decisions that control the factory from the factory itself.
JIT uses a markedly different approach. Rather than consider all the orders at once, JIT
breaks the large problem in a smaller one. Again, illustrating with our chair example, if there
are 20 working days in a month, a factory can fill the orders by producing 24 of A, 32 of B, 16
of C, and 40 of D, each day.
MRP and JIT address the production problem with remarkably different strategies. For the
current planning period, MRP seeks the optimal solution, although the implementation is
imperfect. By breaking production into hourly units, JIT accepts a sub optimal solution, but it
seeks perfect implementation. Both MRP and JIT are concern to solve the same problem in
vastly different ways and each system has been thoroughly studied.

Weakness of the research :

MRP systems do not implement their plans perfectly. Problems arise from unpredictable
events, such as machine breakdowns. MRP does not consider capacity constraints,
essentially assuming that capacity is infinite. For this reason, its plans can create bottlenecks.
MRP does not consider important factory conditions, like queue lengths, so some of its
planning assumptions do not match reality.
JIT does not control production with plans. It builds control into the production system itself.
Its famous Kanban system provides decentralized, local control that coordinates production,
workstation to workstation.