Just-In Time Production - Research Paper Example

The second way through which labor costs can be reduced is the introduction of more efficient production machinery which will take over some of the work done by workers and this will ensure that only the most essential workers are kept at the work place, hence a reduction of labor costs. Cutting production cycle time is very essential in a just-in time production system because the manufacturing company (HMC) is able to increase its overall production efficiency (Gupta, 1997). This not only ensures that the production time of automotive parts is reduced but it also ensures that there is a reduction of the cost of production.

Shorter and more efficient production cycles should be adopted not only to speed up the production process but to also keep up with the consumer demand for the automotive parts. A good way of cutting production time is by ensuring that a production system is developed where a specific product is produced at a single work station instead of being pushed forward to another work station when only partially completed, like the outsourcing system which HMC had previously adopted. This will reduce the pilling up of unfinished work which need immediate attention and will instead cut the production cycle, therefore increasing the overall production efficiency of the HMC manufacturing plant. . It is best to only order raw materials when a customer makes an order for a product, ensure that the raw materials arrive in time for it to go into production and most important of all, to ensure that the product is finished on time and it is shipped to the consumer using the fastest means available to establish a reputation for efficiency.

A swift and efficient system of production ensures that there is a minimal amount of inventory and these results in a reduction of inventory costs (Schniederjans and Cao, 2001). The reduction of expediting costs is very important for HMC due to the large amounts of money it is able to save in the process. Many manufacturing companies spend a lot of money annually in a scramble to ship their products on time and this is mainly due to the fact that the planning and scheduling requirements of many of them are not homogenous.

It is therefore necessary for HMC to keep its planning and scheduling requirements homogenous in order to increase efficiency as well as to reduce their expediting costs. It is important to produce the right automotive parts at the right time in order to reduce the cost of obsolescence. Producing too many of such automotive parts at the same time leads to a congestion of the production cycle and this makes it difficult to ship products on time. Thus it is necessary to ensure that all the orders made by customers are dealt with quickly and are finished and shipped on time so that no additional costs are incurred by the manufacturing company (Stuart et al., 2005). Space utilization in HMC’s manufacturing plant is necessary for the purpose of efficient production.

The company should change its manufacturing system from a batch production system to