QSO 300
QSO 300 Milestone Three
QSO-300- J4664 Operations Management 21EW4
In order to have an effective operation each team should implement three theories for
best business success and profitability. The three theories are just in time (JIT), Toyota
Production System (TPS) and Lean. Each of the business practices has been adopted and
used world wide to optimize performance and efficiencies. Along with those strategies, there
are sustainability’s that companies can do to help their business like, using the triple bottom
line, implementing the ISO 14000 standards and using corporate responsibility for the better
of the society. By implementing all of these business practices, businesses will be able to
improve over all efficiency in their businesses.
The first theory is just in time known as JIT, is a process to increase efficiency and
to decrease any waste. A way to accomplish this is by only receiving goods when they are
needed. The Toyota company created this process and by implementing “the just-in-time
system it reduced lead time on orders by one third and reduced production costs by 50
percent” (Differences Between JIT & Lean Manufacturing, 2019). The thought behind
using JIT is that it will “immediately expose bad quality in inventory, improves quality by
reducing ricks” which gets “better quality and less inventory” (Heizer, Render & Munson,
Operations Management: Sustainability and Supply Chain Management [RENTAL
EDITION] | Pearson,
2017). Taking these steps and implementing them into the business practice it proved to
show an immediate production cost savings. The second theory Toyota production system –
TPS, is a way of doing business to continuously improve processes and it builds this thought
process into the culture of the organization. There are “three components of TPS are
, continuous improvement, respect for people, and standard work practice” (Heizer, Render &
Munson, Operations Management: Sustainability and Supply Chain Management [RENTAL
EDITION]
| Pearson, 2017) which is known as a critical piece of the last theory Lean. The third theory
Lean, is where “lean operations supply the customer with exactly what the customer wants
when the customer wants it” (Heizer, Render & Munson, Operations Management:
Sustainability and Supply Chain Management [RENTAL EDITION] | Pearson, 2017)
removing any waste while consistently improving. The main lean production process are to
utilize JIT, have employee training, try to reduce space that is used, continually working
with suppliers and building that relationship and review all process and remove things that
don’t add value.
The way the three theories relate to each other is the “lean operations are driven by
workflow initiated by the “pull” of the customer’s order” (Heizer, Render & Munson,
Operations Management: Sustainability and Supply Chain Management [RENTAL
EDITION]
| Pearson, 2017) it focused using efficiency, where the JIT is also looking to solve problems
of the throughput and the inventory reduction where is focuses on efficiency. The Toyota
production system forces on always improving, respect for everyone and the standard
practices. There are all pieces of the lean manufacturing process that are used worldwide.
Reviewing the case study of BYD, there are some advantages of using these theories
to improve overall operations and efficiency’s. The company used the JIT theory when
“BYD by producing batteries that contain nontoxic fluids and thus do less harm to the
environment” (Rarick, 2011), and by using this, the nontoxic fluids it can be discarded
instead of recycled. A way the BYD company uses the TPS is by having some “engineers
and scientists live on the company grounds” (Rarick, 2011) this helps them continually
QSO 300 Milestone Three
QSO-300- J4664 Operations Management 21EW4
In order to have an effective operation each team should implement three theories for
best business success and profitability. The three theories are just in time (JIT), Toyota
Production System (TPS) and Lean. Each of the business practices has been adopted and
used world wide to optimize performance and efficiencies. Along with those strategies, there
are sustainability’s that companies can do to help their business like, using the triple bottom
line, implementing the ISO 14000 standards and using corporate responsibility for the better
of the society. By implementing all of these business practices, businesses will be able to
improve over all efficiency in their businesses.
The first theory is just in time known as JIT, is a process to increase efficiency and
to decrease any waste. A way to accomplish this is by only receiving goods when they are
needed. The Toyota company created this process and by implementing “the just-in-time
system it reduced lead time on orders by one third and reduced production costs by 50
percent” (Differences Between JIT & Lean Manufacturing, 2019). The thought behind
using JIT is that it will “immediately expose bad quality in inventory, improves quality by
reducing ricks” which gets “better quality and less inventory” (Heizer, Render & Munson,
Operations Management: Sustainability and Supply Chain Management [RENTAL
EDITION] | Pearson,
2017). Taking these steps and implementing them into the business practice it proved to
show an immediate production cost savings. The second theory Toyota production system –
TPS, is a way of doing business to continuously improve processes and it builds this thought
process into the culture of the organization. There are “three components of TPS are
, continuous improvement, respect for people, and standard work practice” (Heizer, Render &
Munson, Operations Management: Sustainability and Supply Chain Management [RENTAL
EDITION]
| Pearson, 2017) which is known as a critical piece of the last theory Lean. The third theory
Lean, is where “lean operations supply the customer with exactly what the customer wants
when the customer wants it” (Heizer, Render & Munson, Operations Management:
Sustainability and Supply Chain Management [RENTAL EDITION] | Pearson, 2017)
removing any waste while consistently improving. The main lean production process are to
utilize JIT, have employee training, try to reduce space that is used, continually working
with suppliers and building that relationship and review all process and remove things that
don’t add value.
The way the three theories relate to each other is the “lean operations are driven by
workflow initiated by the “pull” of the customer’s order” (Heizer, Render & Munson,
Operations Management: Sustainability and Supply Chain Management [RENTAL
EDITION]
| Pearson, 2017) it focused using efficiency, where the JIT is also looking to solve problems
of the throughput and the inventory reduction where is focuses on efficiency. The Toyota
production system forces on always improving, respect for everyone and the standard
practices. There are all pieces of the lean manufacturing process that are used worldwide.
Reviewing the case study of BYD, there are some advantages of using these theories
to improve overall operations and efficiency’s. The company used the JIT theory when
“BYD by producing batteries that contain nontoxic fluids and thus do less harm to the
environment” (Rarick, 2011), and by using this, the nontoxic fluids it can be discarded
instead of recycled. A way the BYD company uses the TPS is by having some “engineers
and scientists live on the company grounds” (Rarick, 2011) this helps them continually
