The Just in time model that was adopted by Bose is a slight modification of the Just in time strategy. JIT is one where the companies would increase efficiency by working on production processes as and when demand is created. Therefore, supply end goods are received only when there is a need to increase production. This form of working reduces the inventory management costs that result in inefficiency in organizations. This method furthermore enables the companies to have a better forecast system as well. JIT in the case of companies such as Bose holds the advantages of operational efficiency by minimizing warehouse use needs. Warehouse operations are minimized and wastage is minimized. Less money is spent on raw materials and there are overall cost benefits observed here. However, in the case of the JIT form of inventory management, a supply breakdown would shut down the system of working for some time. Sudden demands might not be met properly and this would challenge the dependability objective for the company.
In the context of improving better dependability, Bose adopted JIT II. JIT II is more like a leap of faith that the companies, the manufacturing company and the supplier company take together to ensure objective of dependability is met (Marble, 1998). Bose Corporation made use of JIT II to become more management efficient. It partnered up with a supplier United Printing. JIT II was planned by Bose to reduce the wastes accumulated in the form of paperwork and make inventory management less risky. The original Just in Time application still had risks where when a supplier was late then it would become a crisis for Bose. JIT II on the other hand solves this crisis for the company (Borthick et al., 1999).
“Bose wants material when it is needed, not to sit in a warehouse. Responding to constantly changing production schedules without creating costly inventory, or even worse shutting down the line with late shipments, is United Printing’s challenge. The direct line of communication in a JIT II partnership lets us anticipate Bose’s needs before those needs become problems, and those problems become a crisis” (Marble, 1998, para. 4).
The advantages of the JIT II program, as differentiated from its normal mode of operation are as follows. Firstly, in the past when Bose had to forecast demands, it would rely on a set planning and specification system where it would push out information to the buyers based on the amount of competitive demand that it had for its products. The company would send out the information on a bidding system and then some companies would analyze the bid and raise a response. Bose would then select a bidder from the response pool. It would place an order and when the needed parts are received, the company would go on to complete their manufacturing and delivery. Now this form of system worked quite reliably in terms of quality. The operations objective of quality was hence met in a reliable fashion. However, dependability was less in the system. In a market characterized by market fluctuations, there was less dependability in the system. In the case of the JIT II program, there is more information sharing in the inventory assessment stage. In fact, in some of these operations, people from the suppliers would remain at the company. There is much sharing of information between the manufacturing company and the supplier that it works with. In the case of Bose, customer demand was hence forecast from within Bose to the supplier at a very early stage itself. The old-time method of competitive bidding was not dependable, as it would not have allowed for sudden operational changes and demand adjustments. In the newer system, the demand crises are studied as a trend and as soon as customer demand request is raised, the person inplant will check for ways to reduce costs and will order products accordingly.
Dependability and quality has been the cornerstone of the business. However, these two dimensions alone do not dictate the success of the organization. For the organization to be holistic in its attempts, it is necessary for it to also work with other performance objectives and dimensions such as flexibility, and cost. Cost in fact has been one of the more challenging dimensions for the company as is observed in the case of consumer complaints about the brand. Although the brand does target a very niche customer, it should work on its cost aspects to target a much-expanded consumer segments. The world as a competitive market offers technology at much cheaper prices and hence Bose must work to also attract consumer segments based on price segmentation. Bose already has a system of working that supports quality and dependability. Now if it factors in costs based advantage it would be helpful for the company’s future.