Monday, May 23, 2016

"Just-In-Time"

For this post I will reflect on what I have learned about the Japanese business environment. Prior to coming abroad to study in Japan I was excited to see how "lean" Japan really is. "Lean" manufacturing or production is essentially organizing a process that has zero waste. Eliminating as much "muda", or waste, as possible means that the process is very lean. In a supply chain class course, I have learned that Japanese businesses are leading innovators when it comes to high efficiency and lean operations. The Japanese have coined this form of operations as being "Just-in-time."

Space is very limited in Japan, so many companies go to great lengths maximizing every inch possible. Holding too much inventory causes waste, so Japan has created a system that is highly efficient in distributing products on a regular occurance. An example of this is that fresh baked bread is transported to 7-11's multiple times each day. Also you can pay to have 7-11 ship something across Japan with a day or two! These convenience stores rely on quick and frequent delivery in order to reduce the waste of holding inventory.

This Just-in-time philosophy is not only applied to business in Japan, but is also integrated into daily life for the Japanese. Japanese culture has adapted to the limited amount of space, so many people grab their daily food when it is most convenient. While on the train, I was able to speak with some guys on their way home from work. These guys were about my age so they all spoke English. Today it is common for schools in Japan to teach English, whereas 20 years ago this was not. I asked them if they usually ate at restaurants for dinner. (I asked this question because I had been going out to eat at restaurants a lot more than I was used to.) They replied, "Yes, we don't have a kitchen." This surprised me at first (to not have a kitchen) but then I thought, "Oh yeah, that makes sense. Kitchens do take up a lot of space." The example of just-in-time operations for Japan is the amount of places to get food or drinks. First off, there are drink vending machines EVERYWHERE. Second, there are so many restaurants and convenience stores because so many people are like those guys on the train, who have to get dinner on their way home from work each day. Therefore to meet with the culture of buying things right when they need it, lean systems are maintained in production to make sure that consumers can grab food at a convenient time.

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