Just-in-Time Production Systems (JITPS) in Developing Countries: The Nigerian Experience

KEYWORDS JIT. Manufacturing Companies. Third World. Nigeria

ABSTRACT 

Despite the immense advantages of the JITPS, its adoption in the third world manufacturing is quite limited. Manufacturing sectors in this part of the world are still run on the basis of old production systems that included so many activities that add little value to the final production process. Production processes are therefore slow, wasteful and characterized by avoidable complexities. This paper examines the extent of JITPS in a typical third world country-Nigeria, with a view to identifying the extent of adoption as well as the hindrances on the part of adopting the technique. Structured questionnaires were administered to companies to indicate whether or not they were adopting the technique. We also elicit information on the nature of JITPS adopted by companies as well as the benefits accrue from adopting the method. The findings include that fairly larger companies adopt JIT method more while the relatively smaller ones are still not aware of the existence of the technique. The paper also identifies structural hindrances to the adoption of JITPS, solutions were also suggested to overcome some of these problems

Dowload : In here

Read More

Improving Order Quantity Model with Emergency Safety Stock (ESS)

Abstract—This study considers the problem of calculating safety stocks in disaster situations inventory systems that face demand uncertainties. Safety stocks are essential to make the supply chain, which is controlled by forecasts of customer needs, in response to demand uncertainties and to reach predefined goal service levels. To solve the problem of uncertainties due to the disaster situations affecting the industry sector, the concept of Emergency Safety Stock (ESS) was proposed. While there exists a huge body of literature on determining safety stock levels, this literature does not address the problem arising due to the disaster and dealing with the situations. In this paper, the problem of improving the Order Quantity Model to deal with uncertainty of demand due to disasters is managed by incorporating a new idea called ESS which is based on the probability of disaster occurrence and uses probability matrix calculated from the historical data.

Ke ywords—Emergency Safety Stocks, Safety stocks, Order Quantity Model, Supply chain.

Dowload : In here

Read More

IMPROVEMENT OF PRODUCTION PLANNING IN COMPANY PARS KOMPONENTY

Keywords: the MRP system, production planning, reserve time, stocks

Abstract: The article analyzes the current status of production planning in company Pars Komponenty s.r.o., proposes a new method of planning based on application of the principle of MRP. It is a discrete type of production with high complexity of BOM and MTO (Make-to-Order) and ETO (Engineering-to-Order) from the point of decoupling point. The original planning system plans according to production capacity backward without collisions, but for a given type of production does not work in practice. Planning system was analyzed and the main problems were identified, which were high work in progress and material stocks. This article target is to propose a new planining system based on the inclusion of time reserves of purchased material items. New planning system was tested in practise with benefit in reducing both the material inventory and work in progress.

Dowload : In here

Read More

FINANCIAL EFFECTS OF INVENTORY MANAGEMENT IN TRADING COMPANIES - EOQ MODEL

Abstract.

Effective financial management of trading companies refers to the constant questioning of the necessity of investing in any form of business assets. Therefore, inventories, which often assume major cash investments, must be carefully monitored and controlled. Special emphasis is placed on the costs arising from their existence. Based on the analysis of the costs associated with acquiring and holding an inventory, commercial companies make different decisions regarding the size of the order and the time of its placement. Application of various models, including the "optimal inventory management" model, can significantly facilitate the decision-making process. The analysis in this paper focuses on the effects of the application of the EOQ model in supplies optimization of the company "XY". The analysis showed that there is an economic motivation to apply this model, since its implementation significantly reduces the inventory costs, which contributes to overall profitability. By applying this model in the case of the trading company “XY”, the total inventory costs would be lower by 1.88%. Ordering costs would be reduced by 30%, the inventory holding costs would increase by 7.45%, but it would significantly reduce investment in inventories.

Key Words: inventory holding costs, costs of ordering, safety stocks, EOQ model.

Dowload : In here

Read More