A Review Of Successful JIT Implementations Information Technology Essay

A Review Of Successful JIT Implementations Information Technology Essay Globalization has led to an enormous increase in competition in all segments. Manufacturing, Service, Banking etc. nobody is protected by it. So to gain an edge over your competitors companies are highly focused on improving their processes and systems to reduce the throughput time which subsequently leads to cost-savings. As Just-In-Time is a lean management principle, it definitely results in overall cost reduction. But even after the underlying benefits of implementing a methodology like JIT, there is still a certain amount of reluctance to adopt this philosophy due to various reasons like lack of understanding of the process, benefits associated with implementation, apprehensions to change from traditional methods of production to modern methods, adopting new technologies, capital expenditure and numerous other factors. Such events hamper the growth of the industries and the growth of the nation as well. What the firms fail to understand is that this is an adopted practice and m ay not produce the exact expected results. Moreover, it takes time to implement JIT because it demands an entire process reform. Even Toyota (inventor of JIT), took more than 20 years to get to the lean system, which the looks upto. With not quickly getting the results and incurring of some initial costs, firms often refrain from getting into the trial phase. The study highlights the major issues Supply Chain faces in India which makes the lean practices difficult and desired output are not obtained. SIGNIFICANCE OF STUDY The study highlights a certain unfairness of the much idealized JIT philosophy if adopted blindly. Every concept behaves in a certain pattern in different scenarios. The main significance of the study is to find out the methods of the Risk Management in Supply Chain for smooth adoption and working of Lean management thus taking a leap ahead towards the successful implementation of JIT. The recommendations mentioned in the end are in context to the stories of Indian Firms but can be applied globally as India has made a mark on the International Globe. The study also highlights methods to overcome these failures related to implementation of JIT in India. REVIEW OF LITERATURE JUST IN TIME It is a manufacturing system with a goal to optimize processes and procedures by continuously pursuing waste reduction. The entire process was developed by Taiichi Ohno after the Second World War in competition to the American Automobile Industry. But the demand being less, the Japanese could not afford to order by EOQ & stock an inventory. So to keep the waste and operational cost to a minimum, Taiichi came up with the concept of Just-In-Time (JIT) where any item moves the production system on need. Systems were non-automated, there was no over-production and the time spent in waiting for parts and processing of order was now minimized. The inventories levels were reduced and so were the waste. When a car was selling at a particular selling price such that PRO FIT = (SELLING PRICE – COST) then cost leveling was the only option to raise profit levels. Also JIT got with itself cellular manufacturing when machines were clustered so that items move smoothly in the process. The workers were now trained to be multi-skilled to be able to work on more than one machine.

The arbitrage theory of capital asset pricing Literature review

The arbitrage theory of capital asset pricing - Literature review Example At the same time, the risk factor offers price to investors for investing their money in risky securities. The sum total of both these factors gives a clear view regarding the expected rate of return on a particular asset. It is generally calculated by using a risk measure called beta. The arbitrage pricing theory is a well known alternative to capital asset pricing model that is beneficial for the investors to determine whether an asset is correctly priced or not. This paper tends to evaluate various aspects of the arbitrage theory of capital pricing. Structure of Arbitrage Pricing Theory Arbitrage Pricing Theory (APT) is an alternative to capital asset pricing theory and it is formulated by the economist Stephen Ross in 1976. In order to clearly evaluate the potentiality of arbitrage pricing theory, it is necessary to understand the range and terms of capital asset pricing model (CAPM). As discussed above, CAPM calculates rate of return of an asset by adding the value of risk taken with duration of investment. It is relevant to understand the working method of CAPM also. Assume that risk-free rate is 5%, the beta measure of the stock is 3 and the expected rate of market return for this period is 12%; then the expected rate of stock becomes: 5%+3(12% - 5%) = 26% In the opinion of Roll and Ross (1980), this theory had considerable significance in empirical work during the periods of 1960’s and 1970’s. However further researches on this concept have questioned its reliability and authenticity of the computation of empirical constellation of asset returns; and, many related theories have detected ranges of disenchantment with the CAPM (ibid). Authors say that this situation led to the demand for a more potential theory and it caused the formulation of APT. Although, APT was developed recently, CAPM is considered as the basis of modern portfolio theory. Huberman and Wang (2005) claim that both the CAPM and APT show relation between expected returns o f assets and their co-variance with other random variables; and an investor cannot avoid some types of risks by diversification and the concept of covariance is interpreted as a measure of such risks. While comparing with CAPM, the APT contains fewer assumptions; and at the same time, this theory is very difficult to use. Roll and Ross (1980) clearly tells that the basic idea behind arbitrage pricing theory is that the price of a security is varied by mainly two groups of factors such as macro factors and company specific factors. Since no ‘arbitrage assumptions’ are employed, this theory is popularly known in this name. The group categorization and thereby macro as well as company specific factors are very crucial to form the following formula: r = rf + ?1f1 + ?2f2 + ?3f3 + †¦ where r represents the expected rate on the security and rf is the risk free rate. In this formula, f stands for a separate factor and ? is a relationship measure between the security price and that factor. Cho, Eun, and Senbet (1986) have conducted an empirical investigation so as to evaluate the international performance of the arbitrage pricing policy. In their research, they mainly employed two valuation techniques such as inter-battery factor analysis and Chow test. The inter-battery factor analysis helped the authors to estimate the international common factors while they could test the validity of the APT using Chow test method. A

Business Ethics vs. Success in Modern Business Research Paper

Business Ethics vs. Success in Modern Business - Research Paper Example en corruption and success in business in this research was retrieved from the university faculty, contemporary firms and graduate students of business. The fundamental concept on which the term â€Å"business ethics† is based is that individuals should be held accountable for their practices in business. â€Å"Businesses are at the strategic center of a civil society, and they have a stake in their communities† (U.S. Department of Commerce, 2004). In conventional terms, business ethics are thought of as drivers for successful business. In the modern age, companies and business entrepreneurs evaluate the effect of ethics on their individualistic and collective performances. A lot of studies have shown that unethical practices and corruption have been incurring the companies a cost worth billions of dollars every year. Such studies have portrayed a negative image of corruption and have emphasized upon the potential ways in which the unethical business practices affect the brand image, value of shares and the overall profitability of the business (Maheshwary & Ganesh, 2006). Following the principles of ethics is very imp ortant for a company’s success (Turner, 2006). â€Å"I have always recognized that the object of business is to make money in an honorable manner† (Cooper cited in Rajeev, 2011). Unethical business practices have traditionally caused a lot of damage to the business. However, not many business entrepreneurs are aware of the toxicity of such practices because the costs are often not obvious and come as overheads. Most of the costs of the unethical business practices are hidden. Since the business entrepreneurs can not see these hidden costs, they can only see the convenience that the unethical practices bring them. Thus, many of them are reluctant to abandon such practices. However, the harm caused by such practices is inevitable and is often borne by the society as a whole. For example, when an oil company discharges oil into the sea, it is the marine