DRIFT (Do IT Right The Frist Time)

DRIFT (Do IT Right The Frist Time) is It was advocated by Philip Crosby defines quality as conformance top the recruitments which the company itself has established for its products directly on its customer’s needs. This management process that makes up the JIT (Just In Time) philosophy to be done correctly and efficiently so there are no delays in production.

DRIFT management process makes up the JIT (Just in Time) philosophy to be done correctly and efficiently so there are no delays in production. TOYOTA Production System (TPS) materials, parts are ordered only in right quantities required to meet immediate production means, this production system considers expenditure of resources for any goal other than the creation of value for the customer to be wasteful. In answering and expanding the below points l have considered DRIFT as an aspect of Lean Production or Toyotism

Advantage

Reduces costs-

It lowers stockholding which means a reduction in storage space, hence saves rent and insurance costs. There is less likelihood of stock perishing, becoming obsolete or out of date.

·         Less working Capital is tied up in stock- measuring company efficiency it’s sorely determined by its inventory turnarounds times. Inventory turnover measures how quickly the company is moving merchandisefrom its warehouse to customers (Getting things off the shelf to generate profit and pay bills). As an investor you want to know you would want to know is a company has too much money tied up in its inventory. A company’s working Capital – a company’s efficiency, financial strength and Cash flow health is shown in its management working capital.

1.       Eliminates hidden Costs-

·         Less time is spent on checking and re-working the product of others as the emphasis  is on getting the work right first time

·         The company is able to accurately forecast demand of their products. The product life cycle is clearly outlined form introduction, growth, maturity and declineQuality- Introduction, improvement, management and standards.

·         Management strategies Market Segmentation, Pricing discrimination, Market share and ConsumerPreferences (Pricing structures e.g. premium pricing or penetration pricing .Production Efficiency- Time based management(general approach that recognizes the importance of times and seeks to reduce the level of unproductive time in an organization- Quick response time-faster new product development-Reduction of waste), capacity utilization (is the %of firm’s total possible production capacity that is actually being used), economies of scale (advantages arise for a firm because of it large size or scale operation). Planning and Controlling Operations- Critical Path Analysis (CPA-it a project management tool. Estimates time for each activity, Sets out all the individual activities that make up a larger project , shows order which activities have to be taken, shows resources need) and Project Management. Innovation. Research and Development- Invention and innovation, Patents and Registered Designs.

·         The DRIFT process reduces costs because a company is able to run a smooth production process without need to carry excessive inventory and greatly diminish the cost of production. Information is exchanged with suppliers and customers through EDI(Electronic Data Interchange) to help ensure every detail is correct.

·         DRIFT- promotes (SCM) supply chain management (companies are able to cut excess costs and provide products faster) it represents an effort by suppliers to develop and implement supply chains which are efficient and economical as possible.

2.       It fosters a good customer-

·   Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. Demandsand supply of consumer are clearly meet, materials, parts are ordered only in right quantities required to meet the immediate production need as well as demand. Consumer preferences and changing tastes are clearly outlined products are designed and developed according the consumer preferences technological, economic and social trends.

Disadvantages

1.    Its tarnishes the image of the organization as it is associated with producing defective or not durable products.

2.    There is little room for mistakes as minimal stock is kept for re-working faulty product. Mistakes always happen producing a defective product or not durable products can be caused by obsolete raw materials, computer default or machinery break down. The assumption of (ceteris paribus) in production is biased. Management has to cater for time of break downs, flexible production systems. The damage can have far reaching consequences on the goodwill of the company.

3.    It increases failure costs thus reduces profitability of the organization.

·      In case of defect products, the market share is greatly affected as well as competitive edge. Brand loyalty is compromised as consumers shift to substitute goods or other competitive goods on the market.

·      There is no spare finished product available to meet unexpected orders, because all products are made to meet actual orders. Demand can be a very complex economic factor to pre-determine.

·      Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed.

4.    Note DRIFT frustrates and demotivates employees.

·      All production systems are clearly defined there is little room to be innovative and creativeness. Pre-determined Approach----Research and Development is carried out before production which leaves no room for worker participation and involvement. Defects and production irregulaties are easily blamed on the worker by the management. Repetition of worker can lead to boredom.

5.    It increases scrap which is a cost in terms of storage and disposal.

·      Challenge in today economic crunch (Eurozone Crises, USA credit crunch) the concept is shaky this days. There once was a day when business would plan and inventory ordered and delivered on time basis. A back up plan must be implemented, forecasting and inventory management is essential. Demand for products can quickly subsides due to exogenous factors such as the economic crises. Otherwise we get MAJOR breakdowns by not having what we need on time.

·      DRIFT is only effective where there are no exogenous factors. Environmental, social, political and economic factors are very dynamic.

6. Productivity is affected-due to correction of defective products, problem diagnosis alteration between or among employees as to who wastage of supervising true.

·         Leads to concern of full management control rather than customer satisfaction and worker motivation. The “blame game syndrome” in organizational structures when things go wrong which can led to de-motivation of workers hence low production levels.

·         Increased risk due to the greater probability of stock out costs arising from strikes or other unforeseen circumstances that restrict production or supplies.