WalMart and J.I.T.

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Wal-Mart and J.I.T.

• Dalia Escalante
• Armando Tapia
• Blas Tenorio
• Constantinos Savvides

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Just in Time (J.I.T.)

• Definition Anything that does not add value to
  the product, is WASTE!!
• Developed by Mr. Ohno, Vice-President of
  Manufacturing for Toyota (1960-1975)
• J.I.T. Philosophy has a direct effect in
  manufacturing, purchasing, manufacturing support
  distribution activities.

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Just in Time (J.I.T.)

• Three important components of J.I.T.
• I. Waste elimination.
• II. Companys attitude toward Quality.
• III. Employee Involvement

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Just in Time (J.I.T.)

• With successful implementation of J.I.T.
• Company becomes more efficient
• Company develops a less wasteful manufacturing
  system
• Company will no longer be dependent on marketing
  advertising as the only way to distinguish
  parts and capture market share.
• Company will be low-cost producers of parts.
• Company will be open new markets

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Wal-Mart

• Worlds largest discount retailer offering a wide
  variety of general merchandise.
• Family apparel, health beauty aids, household
  needs, electronics, toys, fabrics crafts, lawn
  garden, jewelry and shoes.
• Special departments pharmacy, tire lube
  express, garden center, McDonalds, Vision
  Center, and one-hour photo.

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Wal-Mart

• Wal-Marts philosophy is Every Day Low Price
  developed by its founder Sam Walton.
• Sam Waltons 3 basic beliefs the company was
  built on are
• Respect the individual
• Service to Our Customers
• Strive for Excellence

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Wal-Mart

• Milestones
• 1962 First Wal-Mart in Roger, Arkansas opens
• 1970 Wal-Mart goes public on the N.Y.S.E.
• 1979 Annual sales top 1 billion dollars.
• 1988 First Super-center opens
• 1991 First international unit opens in Mexico
  City
• 1997 Wal-Mart becomes the 1 employer in U.S.
• 2002 Wal-Mart ranked 1 on the FORTUNE 500
• 2002 Wal-Mart has the biggest single day sales
  in history, 1.43 billion on the day after
  Thanksgiving.

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JIT in Wal-Mart

• Wal-Mart is known to be one of the best supply
  chain operators of all times
• By investing early and heavily in cutting-edge
  technology to identify and track sales.
• In 1979 Wal-Mart switches to a computerized
  inventory system that tracks individual items.

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JIT in Wal-Mart

• Wal-Mart is searching for and supporting better
  technology that promises to make its IT
  infrastructure more efficient. Radio frequency
  identification (RFID) microchips, for example,
  may replace bar codes and security tags with a
  combination technology that costs less money.
  This new wireless technology (smart tag system)
  if used will provide a more efficient
  product-tracking mechanism.

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JIT in Wal-Mart

• In 1983, Wal-Mart invested in point-of-sale
  terminals, which simultaneously rang up sales and
  tracked inventory deductions. Four years later, a
  massive satellite system linked all of the stores
  to company headquarters, giving Wal-Mart's
  centralized IT department real-time inventory
  data.

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JIT in Wal-Mart

• In 1996 Wal-Mart launches its e-commerce Web
  site. The E-business system is used to regularly
  communicate sales and inventory data from every
  store to thousands of suppliers and buyers, and
  deploy a private trading hub to consolidate its
  purchasing globally and bring suppliers online to
  bid on contracts-all part of a plan to lower
  costs and pass on savings.

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JIT in Wal-Mart

• Wal-Mart approached its suppliers as if they were
  partners. By implementing a collaborative
  planning, forecasting and replenishment (CPFR)
  program, Wal-Mart began a just-in-time inventory
  program that reduced carrying costs for both the
  retailer and its suppliers.

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JIT in Wal-Mart

• Wal-Mart has gotten very good at keeping stores
  optimally stocked. Being able to stock their
  shelves as soon as they get empty.
• Wal-Mart has almost no supply storage areas
  because its vendor managed, just in time
  inventory system, which makes suppliers
  responsible for delivering product when Wal-Mart
  needs it.

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Wal-Marts Red Bluff Distribution Center

• Three main goals of the D.C.
• Safety
• Quality
• Productivity
• JIT in Red Bluff D.C.
• Point of Sale (POS)
• Auto Freight Identification (FID)
• LXE System
• Trailer Manifest System (TMS) Sorter
• Efficient workplace Layout
• Preventive Maintenance
• E-Stop

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Wal-Marts Red Bluff Distribution Center

• Point of Sale (POS)
• EDI
• Bettonville
• Data Processing
• Labels
• Process freight
• Distribute

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Wal-Marts Red Bluff Distribution Center

• Auto Freight Identification (FID)
• Unix based operating system
• No more manual labor
• Cut middle jobs (paperwork, manual movement of
  cases)
• Efficient (reduce cycle time), productive and
  accurate
• Increase savings (ex. OHIO 1.2 million year)

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Wal-Marts Red Bluff Distribution Center

• LXE System
• Hand held computer terminal
• Transport information to main computer by radio
  waves
• Used by truck gate, yard drivers, slotters,
  shipping
• Basically identifies where freight is at all
  times
• Helps with researching and maintaining accuracy

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Wal-Marts Red Bluff Distribution Center

• Trailer Manifest System (TMS) Sorter
• Merge Encode
• Photo Eyes read freight and divert to correct
  lane to be shipped
• Efficient Cut Costs by simplifying the shipping
  process

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Wal-Marts Red Bluff Distribution Center

• Efficient workplace Layout
• Cases flow smoothly
• Cut lead time
• Preventive Maintenance
• TQM equipment continuously inspected
• E-Stop
• Maintain quality Safety
• Red Bluff WalMart D.C
• Eliminates waste
• Maintains Safety, Quality Productivity.

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Wal-MartResults of J.I.T.

• Increase performance
• Reduce costs
• Enhance manageability

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Wal-MartResults of J.I.T.

• Increase performance
• Reduced time needed to receive products
• Shelves in the store were always full
• Customers complaints concerning availability of
  products were eliminated

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Wal-MartResults of J.I.T.

• Reduce Costs
• Supplying costs decreased
• Inventory costs decreased
• Moving Costs and maintenance cost decreased

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Wal-MartResults of J.I.T.

• Enhance Manageability
• Real time reports
• Accurate results
• More solid information to base decisions on

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Walmart and J.I.T.

• Thank You for Listening!!!