Abstract
In recent years, inventory management is continuous challenge for all organizations not only due to heavy cost associated with inventory holding, but also it has a great deal to do with the organizations production process. Cement industry is a growing sector of Pakistan’s economy which is now facing problems in capacity utilization of their plants. This study attempts to identify the key strategies for successful implementation of just-in-time (JIT) management philosophy on the cement industry of Pakistan. The study uses survey responses from four hundred operations’ managers of cement industry in order to know about the advantages and benefits that cement industry have experienced by Just in time (JIT) adoption. The results show that implementing the quality, product design, inventory management, supply chain and production plans embodied through the JIT philosophy which infect enhances cement industry competitiveness in Pakistan. JIT implementation increases performance by lower level of inventory, reduced operations & inventory costs was reduced eliminates wastage from the processes and reduced unnecessary production which is a big challenge for the manufacturer who are trying to maintain the continuous flow processes. JIT implementation is a vital manufacturing strategy that reaches capacity utilization and minimizes the rate of defect in continuous flow processes. The study emphasize the need for top management commitment in order to incorporate the necessary changes that need to take place in cement industry so that JIT implementation can take place in an effective manner.
Highlights
In the face of current economic crunch, companies are looking for the ways to cope with the situation by opting for cost reduction and quality products at the same time
Same problem exists in the cement industry of Pakistan and the manufacturers are continuously looking the ways to reduce defects and efficient inventory management to increase the capacity utilization during the production processes
This shows that the component supply chain integration is contributing to the total JIT implementation process with 9.7% of variation caused by this factor
Summary
In the face of current economic crunch, companies are looking for the ways to cope with the situation by opting for cost reduction and quality products at the same time. Same problem exists in the cement industry of Pakistan and the manufacturers are continuously looking the ways to reduce defects and efficient inventory management to increase the capacity utilization during the production processes. As with respect to the effect of JIT production practices, research shows that set up time minimization, concurrent use of cellular manufacturing, pull systems and adherence of daily schedule provides a continuous material flow that is to be achieved throughout the production lines, hance reducing work in-process inventory and unnecessary delays in flow time It further contributes in minimizing the manufacturing costs, speeding up the core activities and ensuring on-time delivery performance (Brown and Mitchell 1991; Manoocheri 1984). H5: Production plan has a significant and positive relationship with JIT implementation
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