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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.
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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likelihood of stock perishing, becoming obsolete or out of date.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.
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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.
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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.
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Increased risk due to the
greater probability of stock out costs arising from strikes or other unforeseen
circumstances that restrict production or supplies.
