study the effectiveness of JIT II in the purchasing, logistics, concurrent engineering
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Today in this new era, the basis of competition between the industries is time-based. This means that the focus is on reducing lead time by responding more quickly to customer demand for existing products. JIT concept - a supplier's representative works full-time in a customer firm while being paid by the supplier. JIT is based on customer-supplier concept and introduced by Bose Corporation. The project is to study the effectiveness of JIT II in the purchasing, logistics, concurrent engineering, inter-organizational relationships and other business processes through case studies.
Bose Corporation was founded in 1964 by Dr. Amar G. Bose, the professor of electrical engineering at the Massachusetts Institute of Technology. Bose Corporation is a privately held organization, based in Framingham and Massachusetts that specializes in audio equipment. Bose Corporation develops and manufactures audio devices (including speakers, amplifiers, headphones, automotive sound systems for luxury cars).
LINES OF SPECIALISED PRODUCTS
Bose produces a range of speakers and audio products for automotive use. Different Bose audio some European models from Audi, Ferrari Mercedes-Benz, Porsche and Renault and also in some Japanese production cars, like Nissan, Infiniti and Mazda.
NOISE CANCELLING HEADPHONES
Bose makes noise-cancelling headphones that have been lauded for their performance. Bose makes noise-cancelling aviation headsets which have been used in the Space Shuttle, where the noise cancellation feature helps to prevent astronaut from hearing damage.
Reason for developing JIT II
In the early 1980’s, shortly after Lance Dixon had been hired by Bose, he requested that Corporate Procurement’s budget be increased significantly to add more experienced buyers, upgrade the department’s information systems, and develop global sourcing programs. As the company grew, Dixon found that every year he needed more people in procurement, and every year at budget time he fought with management over staffing levels but his request was turned down because company resources were focused on efforts in Japan.. Dixon developed an alternative solution to put purchasing at its “profit centre mode”. As Dixon said, “I can get the people I need to do the job and not add anything to payroll”.
The new basis of competition in many industries is time-based. This means that the focus is on reducing lead time by speeding up the design of new products or responding more quickly to customer demand for existing products. JIT II, a customer-supplier partnership concept pioneered at Bose Corporation and now practiced by major companies and their suppliers, can aid in cutting both design and response lead time. This is done through system integration, a basic process strategy of time-based competition.
The practice of JIT II links engineering, planning, and purchasing departments and bridges the inter-organization gap between customer and supplier.
In a JIT II relationship, a supplier's sales representative works full-time in a customer firm while being paid by the supplier. The customer serves as the host organization, and the supplier representative-referred to as an in-plant representative, or "in-plant" or “reps” functions as an employee of the customer's purchasing department, attending planning meetings and determining material needs. The in-plant is then authorized to purchase materials from the supplier for the customer.