Company Examples Essay Example

and JIT methods were being utilized.

Chandra, the founder of the company, applied the JIT system to his business to decrease delivery time, batch amount and improve product quality. Through the integration of JIT and automation in its production process, American Leather has effectively reduced its work in progress to one to two days. While competitors now attempt to follow this trend, the implementation of JIT has been instrumental in American Leather's progress towards improved efficiency and quality.

Freightliner LLC, the truck manufacturer, aimed to decrease expenses. However, the current offset printing method used for their publications and manuals proved costly to establish and maintain. To reduce costs, Freightliner resorted to printing in bulk.

Before commencing the printing of other materials, Freightliner needed to deplete their stockpile of printed material. This presented a challenge as they required substantial printing quantities to reduce costs and generate profits, yet had to avoid waste by finishing the previous stock. The traditional printing method was expensive for small volume text, costing $300 to $400 per manual printed. This process involved excessive manpower and was time-consuming. Freightliner previously created documents and passed them to various organizations who forwarded the data to contract-out printing vendors. Seeking an alternative approach, Freightliner explored new options.

Freightliner consulted Xerox for advice, and after analyzing the company, Xerox suggested implementing a JIT system. This interdependent system decreased both cycle time and costs while increasing speed and flexibility. By improving production processes, Freightliner gained more print assets and was able to produce documentation on demand. As a result, the company evolved from a mere copying center to a printing center.

The JIT documentation process prioritizes order over excessive manual

creation, which helps reduce costs for the company. The system allows for updated guidebook printing without waiting for previous stock depletion. This JIT change resulted in significant cost reductions by eliminating inventory storage and outdated raw material costs. Additionally, it facilitated new opportunities previously unavailable with traditional methods, such as customization and multi-language and format printing.

By shifting to the JIT system, Freightliner has gained a unique selling proposition and can now concentrate on necessary areas and innovation. The company's delivery time has been reduced from 4 weeks to solely 5 days, exceeding their anticipated cost savings. Additionally, producing their manual in-house has resulted in a dramatic decrease in cost from outsourcing at $300-400 to only $25.