And we say JIT can’t work !!!!

Hello Friends!!! sorry for this unintended abscence. I had been busy working on a research paper on JIT with Mark....a friend of mine in Lincoln University...hi Mark!!! People go nuts when it comes to JIT implementation. They say it's not invented here, and it can't work in my firm. Believe me....it can and it will. Because JIT is very natural...we eat when we need it....we breathe when we need it....not more and not less all the time.

Even the Nature likes some of the vital things supplied to us on a JIT basis. JIT needs a supply chain system that should deliver things in the right quantity, at the right place, at the right time, and at the most economical cost. When it comes to the supply of oxygen, I am sure, Nature is the only supply chain Manager that can do it. Others can be nowhere in the race with her if we go by the definition of JIT. Just imagine a day in our life. We need oxygen to survive all the time. Even a small disruption in its supply can result in your last chance to read this blog…..and my last chance to publish this. If the same thing is done by human being, we would be moving all the time with a cylinder of oxygen, in the class, in the car, in the factory while working, and I feel scared to imagine the situation on a dinning table with all the diners facing each other in those weird eating gears.

So looks like, when we (the consumers or customers) need things on a JIT basis, the supplier (the Nature) will be forced to provide it on a JIT basis. For example, we get newspapers, news bulletin, emails, etc on a JIT way, why? Because we will not accept newspapers which are more than a day old. We will feel irritated if we get our sms from our friends delivered 20 minutes late due to an awful traffic jam on the service provider’s network. So, if the service providers want us to remain on their list, they have to make their system agile, smart and excellent enough to have our messages delivered on a JIT basis.

Let’s take some more examples…..In some countries (specially in the countryside), the milk is supplied by the milkmen at the customers’ doorsteps every morning on a JIT basis, because the customers don’t have refrigerators, which make the shelf life of milk very small (a few hours or just a day), and they will not accept milk on non-JIT basis. Same is true about many food items, vegetables and fruits. So, who says JIT is not a viable model in our business operations. Most of the Japanese suppliers have their supply chain synchronized with JIT philosophy, and they are reaping huge benefits in terms of reduced cost, reduced lead time, high visibility, enhanced quality, and continuous improvement.

So, folks, if you think that JIT is impossible to implement in your business environment, then think again!!!!

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City Bus Service: Small could be beautiful

Hi Readers !!! KiaOra (Welcome) !!! Hope you are moving on well with your routine work. Coincidently, this post is all about movement and the logistics that support it. When I was doing my management study at University of Canterbury, I came across an office which was coordinating the carpool for students coming from different corners of Christchurch. I was very impressed with this practice. This reduces the cost of transportation, reduces the traffic congestions, and helps keep the New Zealand environment clean and green. This is akin to a famous logistics practice called “freight consolidation model” which is oft quoted in many supply chain journals.

However, there is a reverse side of the coin too. I have also observed many buses in Christchurch which move on the roads with just 5 to 10 percent of its total passengers carrying capacity…….what a waste of energy and cost….not to mention the traffic congestion caused by their huge sizes. City council can save a lot of money just by implementing a small change in its existing practice. For example, just by having different sizes of buses (big, small, mini.... sort of XL, L, M, etc) as per the traffic demand, the cost reduction could be significant……just assign the right capacity of buses on different routes as per the lean or peak hours.

Readers!!! What do you think? Is this idea tenable or not?

Ram

Does standing mean outstanding customer service?

Hello Readers,

How are you doing? I’m doing fine but not quite so due to some of my observations which I wish to share with you. I find that in most of retail supermarkets, the employees remain standing for almost the whole day while giving the customer service. I really find this practice ergonomically incorrect, and I don’t see why employees should be paid for carrying their weights which take a huge amount of biological energy that could have been used for productive work elsewhere.

Let’s answer a few questions honestly:

Does this practice not affect the stamina and alacrity of staff?

Don’t we see them giving us a tired look while trying to say hello with a smile?

Should we expect that smile despite what we are doing to make them stand the whole day with about 50 to 80 kgs of weights on a pair of columns?

I don’t know about what my readers think, but I feel sympathetic to the point that I feel like replacing one of them for a few moments…as a reliever…as a fellow human being.

However, it’s really nice to see that some organizations like Pak n’ Save have taken a lead among the supermarkets to allow their employees to remain seated while discharging their duties. I consider this a very smart move on part of employers…it has also changed the quality of smile.....thank you Pak n Save!!!

Another move from this organization is passing the job of packing the stuff in shopping bags to the users, which is quite in line with what the CRM principle says……enable end users to do part of your job….that is what most of the e-organizations do through their websites. For example, we book our tickets through Air-New Zealand website….a job which used to be done by Air-NZ Staff…..what a way to save time & cost that could be easily passed to consumers.

Readers, say what you feel….you don’t have to take what I say lying down. I will absorb your opinions sportingly..

JIT Supply Chain Logistics in New Zealand

Hi Readers,

Let me take this opportunity to wish all of you a very happy, fruitful, and eventful 2007. It's my first post on this site, and I'm sure you will have lots of it coming later. I will be concentrating more on JIT related supply chain logistics in different parts of the world. But as they say...charity begins at home, so let me start it with the place where I am now....New Zealand. I have attended a couple of seminars on logistics here..some were excellent, but others were not so impressive. From the view points of participants, I could safely say that JIT is not very popular with many industries. The term is popular with academics, research scholars, CEOs but not with people down the organizational ladders. They simply believe that JIT is not invented here, and for so many reasons it can't succeed...a mindset which will be difficult to change. In fact, I remember one seminar where I didn't hear the word JIT at all...not even once, which motivated me to start this blog in the first place.....to create awareness among people. Captains of industries have a huge role to play in bringing about this awareness by investing time and money in JIT training.

I'm very happy to know that some of the progressive industries in NZ (Fonterra, CarterHoltHarvey, NZ Post, etc) have greater awareness of JIT and the matching supply chain logistics. Most of the importnat seminars on logistics are sponsored, organized, and coordinated by these industries, which underlines the importance of logistics in their operations.

In my next post, I will try to highlight some of the stumbling blocks in JIT supply chain from the New Zealand perspective. In the meantime, have a quick read, and send in your thoughts....I'm sure you'll get a very patient and freindly hearing from me.

Bye, and take care.

Logistically yours.......Ram