Implementation of just-in-time in a small company: A case study

This paper deals with the implementation of JIT in a small company in Taiwan that produces different kinds of automobile lamps such as rear combination lamps and front turn signal lamps. JIT systems have tremendous effects on all operations of a firm, including design, accounting, finance, marketing, distribution, etc., and thus are of interest to all levels of a firm's management. Realizing the success of JIT, large-scale manufacturing companies all over the world have implemented JIT in their production systems with the objective of improving their competitiveness. Nevertheless, small and medium enterprises SMEs play a major role in the national economy. However, JIT has not received serious attention from SMEs. Realising the importance of improving the performance of SMEs, a case study is presented to motivate practitioners to implement JIT in their SMEs. In addition, future research directions in the areas of implementing JIT in SMEs are presented.     

Just-in-time purchasing: an empirical investigation

The just-in-time (JIT) literature suggests that, for JIT to be successful, a manufacturing firm has to make changes in its purchasing operations. However, empirical examination of the JIT purchasing related issues is limited. For example, a literature search identified 49 JIT purchasing articles. Of these, only 14 are empirical studies; two dealing with statistical testing of a few JIT purchasing issues. This comprehensive empirical study is undertaken to investigate (a) changes in the purchasing attributes since JIT implementation, (b) supplier evaluation cri-teria, and (c) problems with JIT purchasing implementation. Statistically significant changes are observed in 28 out of 32 attributes identified in the literature, suggesting that the manufacturing firms are successfully implementing JIT purchasing programmes. Of the 14 supplier evaluation criteria, the empirical investigation shows nine of them being important. Erratic demand for the product and customized product are found to be problematic (but not very problematic as suggested in the JIT literature( in JIT purchasing implementation.     

A structured methodology to implement judiciously the right JIT tactics

In order to enhance the competitiveness and efficiency of manufacturing operations, many companies arc looking at implementing key strategic technologies. Two of the most predominant programs are ‘just-in-time’ and ‘synchronous organizations’. However, their impacts on improving quality and reducing time-to-market have been mixed. It is not very clear why, in some cases, results are poor, when in a similar situation, programmes have proved to work well. There are conflicting reasons reported for such a discrepancy. Some have argued that during J IT implementation either a right mix of tactics was not selected at the outset or the process was not carefully monitored to see whether a mid-course correction or change in tactics was necessary. In order to (a) protect the manufacturing and strategic teams from making the same/similar mistakes and (b) sustain a series of successful activity throughout during the strategic implementation cycle, this paper outlines a structured methodology. The method utilizes a matrix-based procedure to dynamically (over time) measure the effectiveness of a line of JIT tactics against the organization's principles and objectives. The operating procedure suggests first (a) using a method for monitoring the changing conditions of market and business and then (b) using the metrics to guide the management with a new line of tactics that might have better impact on the newly aligned company goals. In an effort to help managers and engineers decide on a proper line of tactics to implement JIT, a line of JIT quality matrices (JQM) is developed. JQM provides a framework to guide group managers to ‘plan, pick and choose’ a set of effective JIT techniques. An approach similar to quality function deployment (QFD) is used to generate the JIT house and their corresponding JQM matrices. With the JQM-based structured methodology, managers can design the best line of JIT strategy blended with JIT theory and adapted to the manufacturing environments in which it is expected to operate.     

A reactive approach to material procurement in an SME

The purpose of this paper is to introduce a more reactive approach to material procurement in a small manufacturing enterprise (SME). The approach involves a hybrid top-down and bottom-up approach to the issue of material procurement. The implementation of the approach in the test site is discussed and we show how the company can benefit from its implementation. The approach requires that there is a good interaction and transfer of information between an SME and both its customers and suppliers. The approach also requires a manufacturing firm to have control of the shopfloor and to have access to relevant and accurate information from the shopfloor. This hybrid approach to material procurement coupled with improved production activity control has helped a local manufacturing company to increase its reactivity. A decision support software tool is available which supports this approach and is described in the paper.     

Implementation of JIT purchasing: An integrated approach

This article addresses the necessity of integration between buyer and supplier for effective implementation of the JIT system. An integrated lot-splitting model of facilitating multiple shipments in small lots is developed and compared with the existing approach in a simple JIT environment, single-buyer-single-supplier, under deterministic conditions for a single product. It is shown that the optimal policy adopted by the integrated approach can provide a strong and consistent cost-minimizing effect for both buyer and supplier over the existing approach.     

A Knowledge Based Decision Support System for Setup Reduction

The issue of setup reduction is important for firms seeking to incorporate advanced procedures and concepts such as flexible manufacturing systems (FMS) and just-in-time (JIT) manufacturing to improve manufacturing productivity. Investing adequate amounts in setup reduction is a complex decision affected by many factors including the existing level of automation, worker characteristics, product features, and the manufacturing environment. The consequences of improper investment (i.e., over- and underinvestment) includes possible disruption of manufacturing operations as well as wasted resources. Much of the knowledge involved in the investment decision is heuristic and experience-based, and takes on greater significance when the form of the setup reduction function is not known a priori. This paper describes the development of a knowledge-based decision support system (KBDSS) that combines both heuristic and procedural knowledge to provide support for the setup reduction investment decision. The system uses codified manufacturing expertise to improve both the accuracy and effectiveness of setup-reduction decision making. Use of the KBDSS is illustrated by two examples based on disparate manufacturing contexts.     

Optimizing lot size and setup time in a JIT environment: a multiple objective application

The just-in-time (JIT) system has been studied extensively and implemented by a number of US firms as an ell'ective production system. The core of JIT involves determination of lot size and setup time reduction so as to increase manufacturing flexibility while minimizing the inventory level. This decision problem usually involves multiple conflicting objectives and mixed-model production. In this paper, goal programming (GP) is applied to a real-world JIT problem involving fabrication of different automotive and industrial rubber composite belts. The model results provide new insights concerning the conflicting nature of several goals, especially between meeting demand and reducing setup or idle time. Also, the GP solution is superior to the current JIT practice of the company.     

Time window capacity analysis for synchronous production

Synchronous production is a philosophy that suggests that the right part should arrive at the right machine at the right time to minimize the inventory and operating costs. To achieve this goal a synchronous material flow is required. How ever, this is not an easy task in the discrete manufacturing environment because it requires management commitment and algorithmic development. This paper proposes a time window capacity analysis (TWCA) approach to implement the synchronous production. By dividing the production time into small time windows, simple rules, heuristics and algorithms are developed to assign operations among available resources such that the inventory and operating costs are kept low. The synchronization is achieved by resolving the demands of each operation in the order of time windows. The approach is simple and has been implemented and tested in an actual manufacturing company. The results show that TWCA is practical and promising. TWCA has the potential to be used in either single, multiple, or parallel machines, one stage or multi-stage, job shops or flow shops, and closed or open systems.     

Production planning in a MRP/JIT repetitive manufacturing environment

Some literature suggests that the best approach to production planning is a complete implementation of just-in-time. It has also been suggested that JIT replaces material requirements planning, and computerized procedures are an unnecessary complex burden on management especially in a highly repetitive environment. This article examines the JIT programme at the John Deere Engine factory. In 1985 the factory began a JIT programme with the belief that it would replace their MRP system. The results of the JIT programme are examined and management's conclusion that the best approach is a blend of JIT and MRP is explored.     

Just-in-time in ATO vehicle manufacturing: The Minivan-Piaggio V.E. case study

The system adopted by Piaggio V.E. to run the production of 'Minivan' aims at conciliating the manufacturing philosophy 'just-in-time' JIT with the creation of a wide range of end-product codes. Some general assumptions for a JIT production, with small lot sizes, are described together with their implementation in the operationorganizing system adopted by Piaggio V.E. for the 'Minivan' assembly line. The strategy pursued by Piaggio V.E. for the Minivan focuses on the quality of the product and the level of service in the form of fast order cycle and a high number of options offered on catalogue. According to the logic of an ATO production system, the customer orders a customized product and the manufacturer does not keep any finished inventory, but aims at effective management of the information flows.     

Distinguishing Features of Just-in-Time Systems in the Make-to-Order/Assemble-to-Order Environment*

Few studies of just-in-time (JIT) implementation examine their significance in make-to-order manufacturing environments. This study examines the relative importance of several operating variables that are characteristic features of JIT systems within such environments in North America. The results suggest that the most salient features of JIT for make-to-order and assemble-to-order firms are the elimination of waste (in the form of time and defects), reduced setup time, reduced lotsize, and a smaller pool of suppliers. In addition, the results suggest that the use of non-domestic suppliers can possibly hinder efforts at JIT implementation of materials procurement.     

Adoption of just-in-time based quality assurance and purchasing practices

Feasibility of transforming purchasing and quality control operations from conventional to just-in-time (JIT) practices is discussed. The study is confined to the dock-to-stores area of an engine manufacturing plant. Components used in the study are selected from a representative sample of inventory classes, commodity groups and agreement types with vendors. A time/cost analysis is carried out for the components selected so as to evaluate the cost effectiveness of the conventional purchasing and quality control. Findings on savings in terms of inventory-related costs and inventory turnover through the implementation of JIT practices are reported. A transformation framework is then developed to determine the suitability of individual components for JIT based practices. Cases are presented to demonstrate the functioning of the framework.     

Organizational modifications to support JIT implementation in manufacturing and service operations

This study investigates JIT implementation practices and performance in manufacturing and service organizations in the US. Literature related to JIT usage and performance in both sectors is reviewed. A field study is then conducted to investigate the actual implementation experiences of a selected group of service and manufacturing users of JIT. Our findings from the literature and the field study are used to develop four research hypotheses that are tested using survey data from 130 manufacturing and 61 service firms. Manufacturing and service firms that had engaged in modifications such as operator and management training and improving linkages with suppliers prior to implementing their JIT systems experienced less implementation problems and achieved higher levels of success than firms that placed less emphasis on these modifications. This paper details and discusses these and other results from our study. In addition, managerial implications of our findings are presented.     

CIM implementation for job-shop environments

Abstract

Abstract. The small to medium-sized job-shop manufacturing industry can benefit most from the implementation of computer integrated manufacturing (CIM) technology, to meet the increasing demand for high-quality and economically priced products. The injection mould making industry is a typical representative for this group, where a manufacturer would generally produce moulds which consist of parts that are standard to every mould type or very similar. Thus, manufacturing techniques, such as group technology (GT), and production planning and control (information) management systems could make significant contributions in improving the efficiency of design and production operations.

The objective of the project, presented in this paper, was the development of a GT-based classification and coding (C/C) system for injection mould parts especially for the design and process planning phases, and the development of a production planning and shop-floor control (SFC) information management system.

An extensive investigation was carried out on existing GT-based C/C systems. This investigation, followed by a thorough examination of many injection mould parts for determining geometric similarities, led to the development of part families (classes) required for GT implementation. An OPITZ-type GT system was developed, thereafter, for the C/C of the manufactured parts of the target company.

The production planning and control software that has been developed for the target company utilizes a relational data base management system. It consists of 13 application programs, which provide a tool of organizing information for efficient production planning and SFC. The programs are designed to cover all manufacturing operations of a job from the proposal to the final testing stage. Shop orders and dispatch lists are created using this software for effective and prioritized SFC. Shop status and job status reports are generated based on feedback information received through time card entries.     

Production control for just-in-time tool-and-die manufacturing

The strategy to implement production control varies in different types of manufacturing systems. We address the issue of production control in unit-based manufacturing systems where the production batch size of the final product is one or two, the product is custom designed and is made up of numerous individual components with similar process routeings lor special machine tools, turbines, boilers, tool-and-die, injection moulding equipment, custom fabrication, etc. We have developed algorithms to generate master production schedules in this particular domain of manufacturing systems using the concept of workgroups. We show how a Kanban-based JIT shopfloor control and purchasing system can be implemented in such systems in tandem with an inventory management system by utilizing the concept of demand lists. We also propose a model for practical implementation of production control in this domain. The methodology is illustrated at a tool-and-die plant where a CIM software is used to apply the JIT-based production control. Preliminary results show a significant reduction in lead times. We try to show the relationship between research and industrial applications of productions of production control and how to bridge the gap between them.     

HRM practices of JIT firms in Canada

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.     

Relationships among JIT practices: an interpretive modeling approach

Abstract

This research develops a model of relationships among components of Total-JIT, including JIT-information, JIT-manufacturing, JIT-purchasing, and JIT-selling, to establish an implementation hierarchy based on relative importance. The data collected relates to the relationships among JIT components and two performance measures, supply chain competency and organizational performance. Two groups are used in the research, one group of five operations management academics and another group of 30 practicing operations managers working in U.S. manufacturing firms. An interpretive structural modelling methodology is used to develop alternative structural models. The academics’ data show JIT-information emerging as lynchpin of relationships, directly impacting all other JIT practices and both performance measures. The practitioners’ data indicates that all JIT practices and performance measures are interactive as components and outcomes. This study is the first to apply interpretive structural modelling to investigate the interplay among total-JIT components and the performance measures of supply chain competency and organizational performance.     

A FRAMEWORK AND MEASUREMENT INSTRUMENT FOR JUST-IN-TIME MANUFACTURING

While Just-in-Time (JIT) manufacturing has emerged as one of the major tools to enhance manufacturing competitiveness, no attempt has been made to develop a reliable and valid measurement instrument for empirical research in JIT. Without such an instrument, generalization beyond the immediate sample is difficult or misleading. We have proposed a JIT framework and developed a valid and reliable instrument with 16 summated scales for dimensions that capture essential aspects of JIT useful in assessing its impact in manufacturing environments. In addition, we discuss in detail the interactive nature of JIT practice. And, we propose a step-by-step approach to reliability and validity testing. Four JIT practices (equipment layout, pull system support, supplier quality level, and Kanban) are identified as major contributing factors to JIT performance.     

Implementation of S-DBR in four manufacturing SMEs: a research case study

Production planning and control systems (PPCs) are tools that have a major effect on the performance of manufacturing companies. An inappropriate determination of the applicability of PPCs could seriously jeopardise the ability to achieve competitive priorities. This mistake can be expensive for any company, but proper implementation is particularly critical for small and medium enterprises (SMEs), which are characterised by limited access to financial resources. Simplified Drum–Buffer–Rope (S-DBR) is a PPC control approach that is characterised by minimum detail in the planning stage and a primary emphasis on the control of execution. Therefore, this approach is a suitable choice for the highly variable context of SMEs. This study aims to explore the practical issues related to S-DBR implementation in four Ecuadorian SMEs through case study research. The case analysis within this study first identifies the choices made in the implementation process design within the four companies according to process and product characteristics. We then conduct a cross-case analysis to explore the effects of the S-DBR implementation process designs on a group of performance measures. Our research findings provide new insights into the S-DBR implementation process in the context of SMEs, and the effects of this approach on performance measures.