Create a 7 pages page paper that discusses logistics and supply chain management.
The specific topic that has been of great importance for SCM (Supply Chain Management) and logistics in construction is the use of the JIT (Just in Time) methodology (Koskela, 1992). It has allowed for great control of the resources in a construction project. The degree of myopia surrounding a project is very high. The use of JIT has ensured a holistic control over the complete set of resources.JIT (Just in Time) is a revolutionary kind of product strategy that seeks the improvement of business by the reduction of the inventory and the quantum of the carrying costs.
This method is also called the “Toyota Production System”. The meeting of the objectives is ensured by the use of the “Kanban” philosophy (Christopher, 2002). The focus of the JIT is on the constant improvement of the process. It also aims at the improvement of the ROI (Return on Investment), the quality, efficiency, and control of the process. The usage of the method has been widespread in the areas of construction, manufacturing, healthcare, and a number of other industries.
There are a number of local variations of the JIT like JIC (which stands for Just in Case). The overall growth of this methodology has been phenomenal.The field of construction has a number of variable costs. The bulk of the fixed costs come in the form of the materials for the inventory. The primary purpose of the use of the JIT was to engineer a change from the estimation of the demand to actual demand. The flows of the processes in the construction are mostly seen to be from upstream to downstream (the management decides the workflow, rather than the line supervisors).
This leads to the build-up of the myopic approach in the construction.