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POMG 248 Paper Project Walmartppt - Slide 1

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					Wal-Mart and J.I.T.
     Dalia Escalante
     Armando Tapia
      Blas Tenorio
  Constantinos Savvides
         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.
           Just in Time (J.I.T.)
 Three important components of J.I.T.
    I.     Waste elimination.
    II.    Company’s attitude toward
           Quality.
    III.   Employee Involvement
          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
                 Wal-Mart
 World’s 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, McDonald’s, Vision
    Center, and one-hour photo.
                Wal-Mart
 Wal-Mart’s philosophy is “Every Day Low
  Price” developed by it’s founder Sam
  Walton.
 Sam Walton’s 3 basic beliefs the
  company was built on are:
  1. Respect the individual
  2. Service to Our Customers
  3. Strive for Excellence
                    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.
              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.
              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.
              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.
              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.
              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.
             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.
             Wal-Mart’s
     Red Bluff Distribution Center
 Three main goals of the D.C.
  1. Safety
  2. Quality
  3. Productivity
 JIT in Red Bluff D.C.
  1. Point of Sale (POS)
  2. Auto Freight Identification (FID)
  3. LXE System
  4. Trailer Manifest System (TMS) Sorter
  5. Efficient workplace Layout
  6. Preventive Maintenance
  7. E-Stop
               Wal-Mart’s
       Red Bluff Distribution Center
 Point of Sale (POS)
      EDI
      Bettonville
      Data Processing
      Labels
      Process freight
      Distribute
              Wal-Mart’s
      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)
            Wal-Mart’s
    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
             Wal-Mart’s
     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
             Wal-Mart’s
     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 Wal–Mart D.C
    Eliminates waste
    Maintains Safety, Quality & Productivity.
            Wal-Mart
          Results of J.I.T.
1. Increase performance
2. Reduce costs
3. Enhance manageability
              Wal-Mart
            Results of J.I.T.
 Increase performance
  1. Reduced time needed to receive products
  2. Shelves in the store were always full
  3. Customers complaints concerning
     availability of products were eliminated
              Wal-Mart
            Results of J.I.T.
 Reduce Costs
  1. Supplying costs decreased
  2. Inventory costs decreased
  3. Moving Costs and maintenance cost
     decreased
               Wal-Mart
             Results of J.I.T.
 Enhance Manageability
  1. Real time reports
  2. Accurate results
  3. More solid information to base decisions on
Walmart and J.I.T.


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