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JIT purchasing: the implementation and its conflict of interests [permalink]

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Just in time strategy is a very useful tool when company is trying to create
efficiency. The strategy is about planning in the usage of resources that the company
has in order to gain flexibility. The implementation is rather complex since involving
many participants in the process, such as purchasing department, marketing
department, production department, accounting department and other departments
also suppliers.
The complexity of the implementation is when the participants cannot support
one another. The reason for this thing to happen is the conflict of interests that each
participants have. These conflicts of interests happen because each participant has
different goals in their working system.
One of the examples is the conflict between purchasing department and the
accounting department. Purchasing department has the role in monitoring the JIT
purchasing process. Its commitment to the company is to prepare the raw materials on
time meanwhile its commitment to the supplier is to pay the raw materials on time.
When the accounting department does not pay to the suppliers due to certain reason,
the purchasing department could not hold its commitment. This will result in the
distrust by the suppliers and the suppliers would delay the next delivery.
To find out which process that has to be the focus of each participants in order
the JIT work, the author used survey that distributed directly to the participants,
which then evaluated by frequency method as one of the descriptive analysis. By
knowing this factor, all participants have to accept and behave accordingly or support
the system. The first factor that becomes the priority has to be supported.

Author
• (34401025) YUDI WIYONO

Contributor
• (96-010) Richard Von Llewelyn
• (98-038) Filicia Chandra

Publisher
Universitas Kristen Petra

Year : 2005

Subject
1. MOTION STUDY
2. TIME STUDY
3. WORK MEASUREMENT

Keyword
purchasing, just in time strategy

Category
s1 - Skripsi/Undergraduate Thesis (International Business Management)

Language
English

Rights
Final Assignment Report No. 00040071/IBM/2005; Y udi Wiyono (34401025)
The resource(s) is/are owned by the Creator/Contributor.Reproduction & distribution for non-commercial purposes is permitted provided that the credit for the Creator/Contributor and the source are explicitly stated,and no alteration are made

FILE(s)

1. jiunkpe-ns-s1-2005-34401025-2265-purchasing-cover.pdf (29.66 MB) - [permalink]

2. jiunkpe-ns-s1-2005-34401025-2265-purchasing-abstract_toc.pdf (76.54 kB) - [permalink]

 

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