The development of a conceptual framework for Just-In-Time implementation in SMEs

Abstract

Just-In-Time (JIT) has shown much promise in many industries but particularly in large organisations. This article analyses which aspects of the JIT philosophy are also applicable to small and medium sized enterprises (SMEs). Based on a literature review and with a particular focus on four data sources, challenges to JIT implementation in SMEs are analysed. A conceptual framework and a set of hypotheses are developed which describe the barriers to, and enablers of, JIT implementation in SMEs. Barriers include: a lack of supplier cooperation and partnerships; an inability to develop the necessary technologies and methodologies to reduce or eliminate waste; difficulties in managing demand fluctuations; a lack of capital to acquire advanced technologies; quality control problems; and, inadequate employee training and development. Enablers include the ability to: empower employees; reduce JIT implementation time; overcome employee resistance to change; and, receive various forms of governmental support. The hypotheses could form the basis of a set of measures that allow SMEs to decide whether JIT is right for them.