Just-in-time Implementation Research Articles

JIT Manufacturing: A Survey of Implementations in Small and Large U.S. Manufacturers

Since the early 1980s, the diffusion of Just-In-Time (JIT) manufacturing from Japanese manufacturers to U.S. manufacturers has progressed at an accelerated rate. At this stage of the diffusion process, JIT implementations are more common and more advanced in large U.S. manufacturers than in small; consequently, U.S. businessmen’s understanding of issues associated with JIT implementations in large manufacturers is more developed than that of small manufacturers. When small manufacturers represent about 96 percent of all U.S. manufacturers, investigation of JIT implementations in small, as well as large, manufacturers is warranted. This survey study investigates JIT implementation differences between small and large U.S. manufacturers. Ten management practices that constitute the JIT concept are used to examine implementation of JIT manufacturing systems. Odds ratio were constructed to determine if an association exists between implemented versus not implemented and manufacturer size for each JIT practice. Ten changes in performance attributed to JIT implementation are also assessed and examined in the study. Logistic regression models are used to examine the relationships between implementation status of each of the JIT practices and of each of the changes in performance in small and large manufacturers. The results of the study show that the frequencies of the 10 JIT management practices implemented differ between the two groups of manufacturer size, and an association exists between the JIT practices implemented and manufacturer size. Moreover, the changes in performance attributed to JIT implementation vary, depending on implementation status of specific JIT management practices and manufacturer size.

Effects of an External Consultant on JIT Implementation

ABSTRACT Management consultants generally sell their services based on the premise that they can provide a service that the firm may not be able to obtain otherwise. Assistance with major project implementation is an example of a service many consultants wish to provide. Implementation of the Just-In-Time (JIT) manufacturing philosophy is one such major project. However, a number of manufacturing firms have successfully implemented the JIT philosophy without outside assistance. Therefore, the question arises as to what services consultants provide that are useful to JIT implementation? This paper uses literature review and a survey of firms, that have implemented JIT to address this question.

A conceptual framework for effective implementation of JIT

The just‐in‐time (JIT) production and inventory philosophy coupled with manufacturing automation in the form of computer integrated manufacturing (CIM) and its related facets are considered by many as great competitive weapons. The birth of JIT and its positive influence on the global strategic posture of Japanese firms is well‐documented. In the 1980s many US manufacturers regarded JIT manufacturing as a peculiar Japanese contrivance, suited only to the oriental culture. However, as more companies with ever more diverse manufacturing environments successfully applied its principles, manufacturers recognized its inherent wisdom. Today, most US manufacturers have come to regard JIT as vital to their survival. This study examines the problems associated with the implementation of JIT in manufacturing environments and attempts to identify hindering factors for its success. An implementation strategy is proposed so that the organization will achieve the benefits of JIT and ultimately improve its strategic posture.

Just‐in‐time and performance measurement systems

The objective of this paper is to assess the use of performance measurement systems in firms implementing just‐in‐time (JIT). A mail questionnaire, with a response rate of 85 percent, was sent to larger New Zealand manufacturing companies. A total of 36 percent of the sample of companies had implemented a JIT programme. JIT firms were found to use non‐financial performance indicators to a greater extent than non‐JIT firms. For JIT firms there was a significant positive correlation between use of non‐financial performance indicators and organisation performance. A significant positive correlation was also found between the use of non‐financial performance indicators and organisation performance for all firms in the survey. Results from this study suggest that there are benefits in adapting the accounting performance measurement system to support and enhance JIT implementation. The study indicates potential benefits from the use of non‐financial performance measures for both JIT and non‐JIT firms.

The impact of organizational structure on the level of JIT attainment: Towards theory development

Just-in-Time (JIT) is a radical innovation that has the potential to arm firms with new competitive capabilities. In some cases, firms attempting to implement JIT have been unsuccessful. In other cases, firms have failed to acknowledge the need to adopt JIT principles and practices. The failure to successfully implement JIT or even to recognize the need to adopt JIT may be attributed to impeding structural arrangements. Innovation theorists suggest that certain organizational designs facilitate radical innovation, while other designs may constrain it. This paper describes the degree of centralization, formalization and complexity that is necessary to facilitate initiation and implementation of JIT.

Justification of just‐in‐time manufacturing systems for Indian industries

Just‐in‐time (JIT) manufacturing systems have attracted the attention of industries all over the world. The perceptible impact of JIT lies in attaining the far‐reaching productivity and quality standards. Attempts have been made to examine JIT, its benefits and elements for their feasibility in Indian industries. Despite the profound interest of prospective managers and researchers, the extent of JIT implementation in Indian industries so far is not satisfactory. The real challenge before Indian managers is to establish priorities among potential JIT techniques to achieve best possible advantage of JIT implementation in Indian industries. This paper attempts to evaluate the relative importance of decision attributes in the hierarchy for a case situation given herein. The present work describes a multi‐attribute decision model using analytical hierarchy process for the justification of JIT for Indian industries.

Management initiatives and just‐in‐time manufacturing

AbstractNumerous benefits have been claimed for firms that implement just‐in‐time (JIT) approaches to manufacturing. While a fair number of Western firms have been successful at such implementations, other firms that could benefit appear to be addressing only a few features rather than the overall philosophy and system. This paper considers whether each of a number of management initiatives is necessary for the implementation of just‐in‐time manufacturing. A case‐based research methodology was used for theory testing at six plants, each which claimed to be implementing just‐in‐time manufacturing. Data were obtained via interviews, questionnaires, direct observation, and collection of documents. Of six management initiatives considered, four were supported as necessary conditions for both JIT flow and JIT quality, as well as for employee involvement. These four are: (1) promotion of employee responsibility, (2) provision of training, (3) promotion of teamwork, and (4) demonstration of visible commitment. The other two management initiatives were rejected as necessary conditions. These are: (1) provision of workforce security, and (2) use of group performance measures. The results also indicated that employee involvement plays a central role in JIT implementation.

An examination of the literature relating to issues affecting the human variable in just-in-time environments

There has been an extensive body of research conducted into the technical aspects of the just-in-time (JIT) manufacturing methodology, particularly prior to 1990. It is only in more recent times that the focus has turned toward the more subtle people-related aspects. The recognition of JIT as a truly holistic approach to managing manufacturing operations has led to an appreciation of the importance of the role played by the human variable as well as an emphasis on the impact that organisational structure and management style can have on successful operation. This article examines and analyses the content of a wide range of articles related to issues such as: the need for change in corporate culture, the role of organisational structures, factors significantly impacting chances of success, the importance of employee involvement, how best to involve employees, the importance of training, how/whom/when to train, different team-based organisational structures, the impact of changing roles on various levels of the organisation and the appropriateness of particular change management strategies. An overall picture of the current state of thinking on these issues is thus developed and the importance of these factors to the successful implementation and operation of JIT highlighted. Opportunities for further research in this important area are identified.

Japanese Technology Management: Introduction to the Special Issue

Japanese methods of production technology management have attracted much global attention since the early 1980s. The driving force of Japanese manufacturing competitiveness has been the successful implementation of various forms of the Just-in-Time (JIT) manufacturing system, by which minimum inventories are kept throughout the system. JIT, originally developed by Toyota in the late 1960s, was disseminated to other Japanese manufacturers in auto and other industries by the late 1970s. JIT emphasizes bottom-up decision procedures such as teams, quality circles, multi-skilled workers and kaizen (continuous improvement). Successful implementation of JIT also requires successful management of quality and suppliers. Transfer of JIT to outside Japan, however, has taken place with varying degrees of success. The first two papers discuss issues associated with transplanting JIT and other Japanese manufacturing practices to the US. The paper by Lieberman and Asaba compares auto assemblers and parts suppliers in Japan and the US which have adopted JIT. It finds that while the US auto assemblers have made significant progress in reducing inventories and productivity, US parts suppliers have lagged behind in both dimensions. In contrast, the performance of Japanese auto assemblers and suppliers seems more even, suggesting the importance of supplier management in JIT manufacturing in Japan. The paper by Tsurumi and Tsurumi discusses the issues associated with transferring the steel production technology and Total Quality Control (TQC) practices developed by NKK in Japan to its subsidiary, National Steel Corporation (NSC). NSC, a supplier to the Ford Motor Company, suffered a significant deterioration in product quality and delivery time during the early 1990s. This paper empirically identifies the effect of new management, brought in to revitalize the firm, in successfully implementing TQC at NSC. The drastic appreciation of the Japanese yen since the mid-1980s as well as increased international competition have caused Japanese competitiveness to deteriorate over the last decade. In response to this challenge, Japanese manufacturers are exploring new methods of management of technology and production, which incorporate company or factory-wide topdown cost cutting and productivity enhancement approaches, within the JIT framework. The next three papers discuss some of these methods. The methods presented here generally extend the current capabilities of JIT practices. The paper by Tamura, Fujita and Kuga discusses the production seat system and its applications at three manufacturing plants. An important feature of this system, which mimics airline reservation mechanisms, is the establishment of a production seat table based on the forecasted demand for incoming orders. The table is then used as a place where cyclical matching takes place between actual customer orders and factory production capabilities, thus integrating information from sales and production departments. The paper by Monden, Akter and Kubo discusses the target costing practice, which aims to match the company requirements for a new product, to alternative designs of the new product being developed. This practice is used by many large assembly-based manufacturers during new product development. The paper presents some exploratory experimental evidence on how to achieve effective participation by new product development team members, and how to

Information technology implementation strategies for manufacturing organizations

Information technology often provides a manufacturing‐based competitive advantage. Information technology can assist manufacturing firms in developing their strategic roles. Discusses a continuum of four strategic roles of the contribution of information technology in manufacturing firms. Any enhancement of manufacturing firm’s competitive position tends to take place through systematic movement from one stage to an adjacent one, with the ultimate objective of becoming a world‐class manufacturer. Draws on a strategic alignment model of manufacturing management and information technology, which is defined in terms of four domains of strategic choice, i.e. the structure and infrastructure of manufacturing strategy, and the structure and infrastructure of information technology ‐ each with its own constituent dimensions. Conceptualizes the model in terms of two fundamental characteristics of strategic management: strategic fit (the interrelationships between structural and infrastructural domains) and functional integration (integration between manufacturing and information technology functional domains). Implementation of information technology is through cross‐domain alignment via strategic fit and functional integration. Examines the implementation of MRP (material requirement planning) and JIT (just‐in‐time) in relation to this strategic alignment model.

HRM practices of JIT firms in Canada

Abstract Many firms have adopted the just-in-time (JIT) philosophy to compete successfully in the global environment. The literature suggests that die success of JIT implementation depends on sound human resource management (HRM) practices that will attract, maintain, and retain employees with the required workforce characteristics. However, only a few field studies investigate the effectiveness of such practices. This empirical study examines HRM practices of 69 JIT manufacturing firms in Ontario, Canada. Specifically, it identifies important workforce characteristics, recruitment sources and selection instruments used by JIT firms. It also evaluates die degree of change in training, compensation, employee retention, and labour relations practices in the firms since JIT implementation. The level of attainment of various expected outcomes of JIT implementation and die competitiveness of the JIT firms are investigated. Problems faced by HRM managers are also discussed.

The Effect of Communication On the Linkage Between Manufacturers and Suppliers in a Just‐in‐Time Environment

INTRODUCTION The importance of communication is confirmed by scholars and practitioners when describing an organization's just-in-time (JIT)/total quality management (TQM) performance. One researcher has recently suggested that communication is actually the key to JIT success.[1] She argues that efforts made to simplify communication and open information channels must parallel structural and organizational changes associated with JIT implementation. JIT partnering, an important link in the value chain, facilitates better management of supply risk and reduces demands on organizational resources by cutting non-value added activities.[2] In the past, supply risk was managed by holding buffer inventories to avoid problems caused by part shortages, defective inputs, and lengthy setup times. Traditional competitively oriented purchasing-supplier relationships usually are conditioned by the lowest bid price criterion. JIT partnering relations, on the other hand, are ideally described as cooperative partnerships in which one of the main goals is to obtain mutually beneficial results. In a win-win cooperative relationship, communication is an essential ingredient for developing successful supplier relations. Partnering arrangements the basis for supplier delivery of quality materials on a JIT basis as required by the manufacturer. Realization of the resulting benefits[3] depends on the opening of channels of communication between manufacturers and their supplier partners. New or enhanced communication patterns include: 1. More freely exchanged cost, schedule, and quality control information 2. The elimination of purchase orders for each shipment 3. Involving suppliers in the development of design specifications 4. The formation of joint task forces to resolve concerns 5. The use of supplier and manufacturer plant visits 6. The use of electronic data interchange (EDI) Opening channels of communication fosters the development of trust between a manufacturer and its supplier, thereby facilitating openness in the exchange of information. This exchange helps reduce opportunistic behavior and improves the free flow of important operating information.[4] The communication link in supplier partnerships thus contributes beyond immediate information transfer needs, reinforcing longer term mutual benefits affecting both manufacturer and supplier partners. One group of researchers discusses the need for organizations to provide a structured foundation for relationships, supported by processes which mutual benefits.[5] This article examines one of the foundations of the interorganizational JIT relationship: that of the communication experience of JIT manufacturers with JIT suppliers. RESEARCH DESIGN The data used in this study were drawn from a broader study examining the JIT purchasing relationship. The purpose of the study was to determine empirically the factors contributing to a cooperative, as opposed to a traditional, relationship between a manufacturer and a supplier. Questionnaires were distributed to a sample of 1,315 purchasing personnel. Participants were purchasing managers, procurement officers, buyers, purchasing supervisors, and materials managers. Respondents were employed by original equipment manufacturing firms in such industries as fabricated metal products, machinery, electric and electronic equipment, transportation equipment, instruments and related products, and miscellaneous manufacturing. A second mailing was made to encourage participation in the study. The sample was partitioned into early and late responding groups to test for nonresponse bias - none was found. Of the 535 respondents, 218 were involved with JIT purchasing. These 218 responses were used to test the relationship between supplier communication and JIT outcomes. JIT outcomes were operationalized using perceptions of performance adapted from Ansari's earlier work. …

A case study

While many larger organizations have been implementing just‐in‐time (JIT) for the past decade or more, smaller organizations have been somewhat slower to adopt these ideas even though the relative pay‐offs for them can be at least as large. Examines the the progressive implementation of JIT at a small New Zealand knitwear manufacturer. This occurred over a period of three years and is described as three phases. Highlights some of the achievements, and shows how these will be limited unless the organization invests in its people processes, as well as its production processes.

A Reexamination of the Effects of Just‐In‐Time on Inbound Logistics

Just‐In‐Time (JIT) manufacturing remains an important issue and research efforts are beginning to examine its impact on other business functions. This paper proposes a theoretical model that relates the extent of JIT implementation to changes in inbound logistics practices and outcomes. Exploratory factor analysis was applied to responses from a large‐scale survey. Six underlying constructs were identified and retained, and eleven hypotheses concerning the causal relationships between these constructs were tested using LISREL. Analysis indicates that JIT: (1) improves supplier operations, (2) enhances transportation operations with respect to inbound carriers, (3) reduces the level and improves the management of inventories, (4) does not cause overall inbound logistics costs to increase, and (5) increases the quality and performance of inbound logistics.

A study on just‐in‐time practices in Singapore

The just‐in‐time (JIT) production system represents a new technology that has been widely promoted by the Singapore government and which has been adopted by several organizations operating in this newly industrialized economy (NIE). Presents the first comprehensive study of JIT practices in Singapore. Describes the major survey findings on the profile of JIT companies, their pre‐implementation and implementation experiences, and the JIT practices targeted for future implementation. In this way, the study is similar to other such studies conducted in the USA, the UK, Europe, Australia, Hong Kong, Korea and Taiwan, and hence adds to the empirical database of actual JIT practices as published in the literature. Also seeks to provide empirical insights to three specific research issues pertaining to the strategic significance of JIT, the speedy and effective implementation of JIT, and the need for local suppliers to practise JIT. Such empirical insights derived from the JIT practices of companies operating within a successful NIE like Singapore could be helpful towards encouraging the rapid diffusion of the JIT technology in other developing economies.

An enlarged JIT programme: its impact on JIT implementation and performance of the production system

Abstract During the past two decades, Japan has emerged as the second economic power of the world. Japan's success has prompted many scholars and practitioners to turn their attention to Japanese management practices. The just-in-time (JIT) production system has been the primary focus of research. However, one major area of JIT which has not been thoroughly studied is the relationship between the customer and the producer. This study explores the concept and practices of enlarged JIT, which involves customers in the JIT plan. Through a descriptive field study, it investigates the impact of enlarged JIT on JIT implementation and production system performance.

Just-in-Time application and implementation for building material management

Materials constitute a huge proportion of the cost of construction. Materials are sometimes ordered weeks or even months ahead of requirement leading to uneconomical inventory on construction sites or contractors' warehouses. Building material inventory represents cost to procure, cost to store and insure, cost to guard against theft and cost incurred when inventory becomes obsolete. This paper presents an overview of the Just-in-Time (JIT) production system and discusses application and implementation issues for the control of material inventory in building construction. JIT ensures that suppliers deliver directly to the production floor to achieve either a reduction in inventory or zero inventory and consequently a reduction in production costs. Implementation of JIT building material management in construction has the potential to realize the same far reaching benefits experienced in manufacturing. Relevant factors to consider in JIT implementation for material inventory management in construction are ...

PARTICIPATION IN AMERICAN VERSUS JIT SYSTEMS: IS IT THE SAME?

The just‐in‐time (JIT) production system is notable for its emphasis on employee involvement and participation. However, we suggest that the role of participation that is most typically described in the organizational behavior (OB) literature does not match the type of participation practiced in JIT. We introduce a theoretical framework that accounts for these different perspectives: whereas the OB approach treats participation as an intervention and hence as an independent variable, the JIT approach sees it as a side effect of the JIT production system and hence a dependent variable. Understanding of the differences is essential in JIT implementation in the workplace if we are to avoid miscommunication, stress, and disbelief in the system.

THE IMPLEMENTATION OF “JUST-IN-TIME” IN TAIWAN OF SMEs

ABSTRACT In this research, postal questionnaires and personal interviews are used to reveal the current status of Just-in-Time (JIT) implementation in Taiwan. Changes in the business climate in Taiwan have led many manufacturers to adopt JIT. Ninety-eight per cent of the manufacturers in Taiwan are small and medium size enterprises, for which the problem of inventory is not serious. Therefore, the firms in Taiwan care more about reducing manufacturing costs and improving product quality than reducing inventories. The most frequently adopted JIT practices are improvement within workshop, automation and quality control circle etc., in order to reduce cost and improve quality. Lack of supplier and worker support are the major problems in JIT implementation, which render the manufacturers incapable of completely and successfully adopting JIT practices. Although JIT practices are only partially implemented in Taiwan, the benefits of implementing JIT are significant and valuable. Results of this study show that...

International best practice, quality management anf high performance: inferences from the Australian automotive sector

The adoption of international ‘best practice’ (IBP) has been presented widely as a strategy for organizations to improve productivity and competitiveness. The most prominent best practices include total quality management, continuous improvement programmes and just-in-time (JIT) production. Two key measures of competitiveness are quality and efficiency, and we examine those IBPs that lead to high levels of quality and efficiency in the Australian automotive industry. Our findings are based on a survey of the Australian automotive industry, and they suggest that the successful implementation of JIT and continuous improvement programmes can influence efficiency; this corresponds with recent discussions of IBP. However, our analyses also indicate that certain areas of human resource management, such as performance appraisals, performance-related pay, welfare schemes and testing during selection, can have an important influence on efficiency and quality and should also be considered as important forms of best...