What is a company that is successfully using JIT (Just In Time Inventory) systems in its operations.
- Describe the company briefly: product/services, locations, customers
- Describe the company’s operations briefly: type of process
- Describe how JIT is being used and how it has benefitted this company
One of the most famous companies using JIT is Harley Davidson.
Harley Davidson is a company that manufactures motorcycles. It is an American company based out of Milwaukee, Wisconsin which started back in 1901 with the combined efforts of William, Arthur, and Walter Davidson and William Harley.
The HD factories are located in three Wisconsin locations as well as one in York, Pennsylvania and Kansas City, Missouri. Each factory branches out into a museum. The company celebrates its anniversary with a country-wide "ride out".
The use of JIT by Harley Davidson is mostly well known from the way that it dynamically changed during the 1940s from being a bad manufacturer that used to resolve its weaknesses by adding more inventory and parts, to becoming a quick-response manufacturer that went on to resolve all the demands of the public quickly and effectively.
The way that they did that was by increasing productivity and by decreasing inventory levels.
If Harley Davidson had not implemented JIT, it could have gone bankrupt. This is because Harley used to purchase additional parts and fixtures whenever there were process problems. This was costing the company enormous amounts of money, and it was basically buying itself out. When JIT was implemented the first thing that took place was a quality control and quality assurance evaluation of the processes of production. The moment the evaluation was conducted it was determined that there were major faults in the production and shipment practices. Once they were fixed, Harley began to meet shipping dates and using its own inventory more effectively.