Friday, November 19, 2010

JIT

JUST IN TIME MANUFACTURING OR MANUFACTURING EXCELLENCE
Harley- Davidson , an 80-year-old U.S. motorcycle manufacturer, suffered such staggering losses in 1981 and 1982 that the future of the company was seriously in question. Some of the external problems were Honda, Suzuki, Kawasaki and Yamaha – four Japanese competitors that had taken most of the market. Harley Davidson's major internal problem was an overpriced product that received numerous customer complaints about quality – a result of what seemed to be a long series of quick fixes to help the company get along. Between 1982 and 1986, the firm made significant improvements. Inventory turnovers increased from less than 7 to about 20 a year. Productivity per employee rose about 50 %, rework cost were reduced by 80 % and warranty costs were down by 46 %.

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