Goings Manufacturing Division and Just-in-Time Essay

Goings Manufacturing Division and Just-in-Time - Essay Example We will look at these aspects and how the principles of JIT can be applied to Going's manufacturing division. Going should try to revamp its value chain and come up with a leaner manufacturing system. First of all, the company should exert effort in reducing the number of its suppliers and forging strategic alliances with them. Currently, the company solely bases its supplier choice on who can give the lowest price. Going should pursue close collaboration with its parts supplier because they are important stakeholders of the company. JIT highlights the importance of the physical distance of the supplier and the manufacturer's warehouse/plant. Having suppliers locate within reach will be mutually beneficial-suppliers will cut down on logistics cost while manufacturer is assured of fast and timely delivery whenever component is needed. Going can even get rid of its warehouse if all its major suppliers operate near its manufacturing plant. Going should pursue further efficiency in production by sourcing semi-assembled products from its suppliers. The case mentioned that the company currently has 10,000 part numbers.