Most interviewees support that proper design of
information systems could assist JIT systems. They pointed
out that information system is a technological foundation
and its application to JIT is an elevated method for
implementing JIT production system. The case company
established a close dynamic corporation alliance via the
Internet from upstream to downstream of the whole supply
chain in order to realize the interaction among the company,
suppliers and customers. In addition, information technology
could assist the case company for building seamless
connection between order information of upstream and
resource information of downstream in order to reduce
inventory by sharing information between both sides. Thus,
the case company could enhance quicker response of the
supply chain to ensure materials could be supplied smoothly.
More specially, the company employs electronic Kanban
system to facilitate the flow of information.
Fig. 1 shows the old system of the case company, which
did not make use of a proper information system so that
suppliers cannot report the delivery situation to Company X
quickly and timely. Therefore, Company X had to employ
many workers to check when and how many goods were
provided. That disadvantage could lead to excess inventory
in the factory. In addition, this makes Company X very difficult to control the production process and hence
production efficiency is also low. The main problem of the
old system is that wrong parts or components could be
provided to the production line, which has a great influence
on the whole production line. Implication of manual
inspection is that efficiency was very low.
Fig. 2 depicts the new JIT information system, utilizing
bar-code system to monitor the flow of parts. The system
could prevent wrong parts being used in the production line
and could guarantee that the production line is uninterrupted.
This system could also improve the production efficiency
and reduced the labor cost by updating production
information instantly. Through using electronic data
interchange technique to link Company X and its suppliers,
Company X could get the information from the suppliers
through a monitoring system. The new JIT information
system could achieve quick response in production line and
build a very close relationship between Company X and its
suppliers.
could prevent wrong parts being used in the production line
and could guarantee that the production line is uninterrupted.
This system could also improve the production efficiency
and reduced the labor cost by updating production
information instantly. Through using electronic data
interchange technique to link Company X and its suppliers,
Company X could get the information from the suppliers
through a monitoring system. The new JIT information
system could achieve quick response in production line and
build a very close relationship between Company X and its
suppliers.