MSc Project Management

Assessment of the Factors Affecting Future of Just In

Time (JIT) as a Tool for Inventory Management in the
Automobile Industry in India.

Joel Karleth George

B00486063
 ABSTRACT

Background- Using a number of industrial technologies, businesses in the Indian automobile sector
are always seeking to improve their operations. Nevertheless, Just In Time (JIT) must be examined
to enhance industry standards, quality, working environment, kind of work system, and inventory
levels. Simply JIT is a business philosophy that emphasises cost and time savings, as well as the
removal of poor quality in manufacturing and non-manufacturing operations. Sometimes called lean
manufacturing or short-cycle manufacturing.

Purpose of the Review- The aim of the master thesis is to evaluate the factors influencing the future
of Just-In-Time inventory management in India's automobile industry.

Methodology- The study is exploratory in nature. Several contributing aspects of JIT at various
automakers in India will be evaluated utilising descriptive research methodologies such as
structured questionnaires. The majority of vital information could be found in published papers,
scientific publications from online databases, periodicals, and university library databases. This
research lasted 80 days, including 20 days for the survey. A factor analysis is done on the survey
results, and a model for improvement of the quality of inventory management is provided.

Findings- The review found out certain factors that affects the future of Just in Time as a tool for
inventory management in the automobile industry in India. The main factors identified are, Staff
involvement and Commitment, Supplier Relationships, Level of Inventories, Quality and Waste
Reduction Aspects, and Production Aspects.

Recommendations- This research suggests an inventory management strategy for automobile

manufacturers. JIT operations are frequently utilised in the manufacturing industry to govern
delivery and production schedules while preserving or enhancing production efficiency. JIT drives
producers to perform tasks quickly and affects production schedule. As sensors and wireless
networks advance, IoT technology may be incorporated into production. IoT may link materials,
work-in-progress (WIP), finished goods, labour, machines, and tools to record their state and
performance for production scheduling.

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 ACKNOWLEDGEMENTS

I'm grateful to the famous Indian automobile firms who allowed me to collect their information.

This thesis would not have been finished had it not been for the excellent guidance, suggestions,
and constant support provided by Prof. Julie McCaffery.

Dr. John Hughes was a great help to me throughout my research since he gave me sound advice and
offered his thoughts on the ethical approval of my data gathering. In addition, I'd want to show my
gratitude and recognise my debt to him.

A similar vein runs through my gratitude for the suggestions and encouragement of Mr. Harold Ng
and Mr. Dennis Tse as well as Mr. Eddie Yu and Wong Kwun.

For all of His blessings that made my thesis possible, and for giving me the strength and
determination to finish it while working a full-time job, I give thanks to the Almighty God. My
brother and other family members who helped proofread the thesis are also to be thanked.

Lastly, I would want to convey my appreciation to all of my friends for their words of support and
encouragement.

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 Table of Contents
ABSTRACT ...................................................................................................................................... 2
List of Figures .................................................................................................................................... 6
List of Tables ..................................................................................................................................... 7
1. INTRODUCTION ......................................................................................................................... 8
2. LITERATURE REVIEW ............................................................................................................ 10
2.1. Staff Involvement and Commitment..................................................................................... 11

2.1.1. Staff Participation ........................................................................................................... 11

2.1.2. Employee Attitude and Awareness ................................................................................ 12
2.1.3. Training and Education .................................................................................................. 13
2.2. Supplier Relationships .......................................................................................................... 13

2.2.1. Delivery in Short Time ................................................................................................... 14

2.2.2. Reduction in Paperwork ................................................................................................. 14
2.2.3. Supply of Good Quality Materials ................................................................................. 15
2.3. Level of Inventories .............................................................................................................. 15

2.3.1. Raw Material Inventory ................................................................................................. 16

2.3.2. Finished Goods Inventories ............................................................................................ 17
2.4. Quality and Waste Reduction Aspects .................................................................................. 17

2.4.1. Product Quality .............................................................................................................. 17

2.4.2. Waste Reduction Protocols ............................................................................................ 18
2.4.3. Reduction of Defects ...................................................................................................... 19
2.5. Production Aspects ............................................................................................................... 19

2.5.1. Productivity .................................................................................................................... 20

2.5.2. Process Capacity and Space Utilization ......................................................................... 20
2.6. Recent Advancements In JIT ................................................................................................ 21

2.7. Gap Identified in The Literature Review .............................................................................. 24

3. METHODOLOGY ...................................................................................................................... 25
3.1. Research Design and Overall Approach ............................................................................... 25

3.2. Data Collection- Primary ...................................................................................................... 26

3.3. Sample Size, Selection and Calculation................................................................................ 28

3.4. Secondary Data Collection ................................................................................................... 28

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 3.5. Techniques of Data Analysis ................................................................................................ 30

3.5.1. Descriptive Statistics ...................................................................................................... 30

3.5.2. Factor Analysis ............................................................................................................... 30
4. FINDINGS .................................................................................................................................. 35
4.1. Identification of Factors affecting the Future of JIT as a Tool for Inventory Management . 35

5. ANALYSIS AND DISCUSSION ............................................................................................... 39

5.1. Analysis of the Factors Affecting the Future of JIT as a Tool for Inventory Management . 39

5.2. Model for Improving the Quality of Inventory Management in the Automobile Industry of
India ............................................................................................................................................. 48

5.3. Novelty of the Research ........................................................................................................ 50

CONCLUSION AND RECOMMENDATIONS ............................................................................ 52

Limitations of the Study .............................................................................................................. 53

Recommendations ........................................................................................................................ 54

REFERENCES ................................................................................................................................ 55
APPENDICES ................................................................................................................................. 59
Appendix 1: Assessment of the factors affecting future of just in time as a tool for inventory
management on automobile industry in India. ................................................................................. 59

Appendix 2: Ethical Approval ..................................................................................................... 65

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 List of Figures

Figure 1 Importance of Staff Involvement and Commitment in JIT (Created by author according to
Aballah et al, 2016). ........................................................................................................................ 11
Figure 2 Factors Affecting the Future of JIT (Created by the author). ........................................... 21
Figure 3 Advancements in JIT (Created by author according to Serphanos et al., 2018). .............. 22
Figure 4 Overall Methodological Approach of the Research (Created by author) ......................... 26
Figure 5 Overall Structure of the Questionnaire (Created by author). ............................................ 27
Figure 6 Factors affecting the Future of JIT as a Tool for Inventory Management in Automobile
Industry in India (Created by author). ............................................................................................. 36
Figure 7 Scree Plot (Created by the author according to SPSS software) ....................................... 40
Figure 8 Component 1- Factor Loadings (Created by author). ...................................................... 42
Figure 9 Component 2- Factor Loadings (Created by author). ...................................................... 43
Figure 10 Component 3- Factor Loadings (Created by author). ..................................................... 44
Figure 11 Component 4- Factor Loadings (Created by author). ..................................................... 45
Figure 12 Factor Loadings in Component 5 (Created by author).................................................... 46
Figure 13 Model for Enhancing the Quality of Inventory Management in the Indian Automobile
Sector (Created by author). .............................................................................................................. 48
Figure 14 Novelty of the Research (Created by author). ................................................................. 50

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 List of Tables

Table 1 Advantages and Disadvantages of JIT Manufacturing (Created by author according to

Peraldi-Frati, 2016).......................................................................................................................... 10
Table 2 Summarization of Overall Factors from the Perspectives of Literatures (Created by
author).............................................................................................................................................. 23
Table 3 Overview of Data analysis (Created by the author). .......................................................... 28
Table 4 Search Strings (Created by author)..................................................................................... 29
Table 5 Inclusion and Exclusion Criteria (Created by author) ........................................................ 29
Table 6 The values of KMO and interpretations based on these values (George and Mallery, 2003)
......................................................................................................................................................... 33
Table 7 Overview of the Factors Identified from the Literature Review (Created by the author) .. 35
Table 8 Outline of Descriptive Statistics of the Survey Data (Created by the author). .................. 37
Table 9 KMO Results (Created by the author according to SPSS software) .................................. 39
Table 10 Total Variance- Principal Component Analysis (Created by the author according to SPSS
software) .......................................................................................................................................... 40
Table 11 Component Matrix- Principal Component Analysis (Created by the author according to
SPSS software) ................................................................................................................................ 41
Table 12 Rotated Component Matrix (Created by the author according to SPSS software) .......... 42
Table 13 Overall Components and Factors (Created by author) ..................................................... 47

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 CHAPTER 1

1. INTRODUCTION

Companies in the Indian automotive industry are always searching for methods to enhance
their operations using a variety of industrial technologies. However, JIT must be evaluated in order
to improve industry standards, quality, working environment, kind of work system, and inventory
levels. Simply JIT is a corporate concept that emphasises time and cost reduction, as well as the
elimination of poor quality in manufacturing and non-manufacturing processes. Sometimes referred
to as lean or short-cycle manufacturing. In a variety of sectors, JIT tools and methods have been
extensively used.
Automobile manufacturing companies must investigate the importance of low-cost, high-
quality goods, a reduced time to setup, waste reduction, and zero inventory. For JIT's basic
components and instruments, an assessment of the JIT system for the targeted industry is necessary.
To take advantage of available skill and demand, businesses must be inventive in their JIT
evaluations. There are several studies on the assessment of JIT in management literature, however
evaluations of JIT in the automobile sector are few. This research enhances the automobile industry's
assessment system and contains an overview of JIT's fundamental components and tools which
makes the research relevant.
The aim of the master thesis is to assess the factors affecting future of sustainable just in
time as a tool for inventory management on automobile field in India.
The key objectives are as follows:
• To conduct a detailed literature assessment on factors affecting future of just in time as a
tool for inventory management on automobile field in India.
• To conduct an online survey to determine the variables influencing the future of just-in-time
as a solution for inventory management in the Indian automobile industry.
• To undertake a factor analysis with the purpose of identifying particular factors that have an
impact on just-in-time inventory management in India's automobile industry.
• To offer recommendations for the future on the basis of the data that will be supplied.
The research questions are as follows:
RQ1- What are the variables that will influence the future of just-in-time inventory
management in the automobile industry in India?
RQ2- What can be done for improving the quality of inventory management in the
automobile industry of India?

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 This study paper explores the elements impacting the future of JIT as a tool in upgrading the
Manufacturing process in an Automobile Industry of India. Through a comprehensive literature
research, the author performs an intensive study on the issues impacting the future of JIT in the car
sector of India. The chapters of this master’s research are mentioned below.
The study is exploratory in nature. Several contributing aspects of JIT at various automakers
in India will be evaluated utilising descriptive research methodologies such as structured
questionnaires. The bulk of essential material may be discovered in research papers, academic
publications from online sources, magazines, and university library databases. This research lasted
80 days, including 20 days for the survey. A factor analysis is done on the survey results, and a
model for improvement of the quality of inventory management is provided.
Since the first chapter is the Introduction. The Second chapter is dedicated to a detailed
literature review on the components that affect the future of JIT. The literature review covers the
findings of 48 articles.
The third chapter outlines the methodology employed.
The outputs of the data gathering were analysed and summarised in the fourth chapter. The
results of the survey are used to do a factor analysis.
The fifth chapter is dedicated to discussions. By referencing theoretical concepts developed
in the literature review, this chapter cultivates analytic and critical thinking about primary data and
analysis. The development of a paradigm for improving the quality of inventory management in the
automobile industry.
In the study's conclusion and recommendations section, the most important results are
described. The results provide the answers to the research questions and the implications of the
research. In conclusion, the questionnaire is shown in the Appendix.

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 CHAPTER 2
2. LITERATURE REVIEW

According to Kaneko et al., (2016), the traditional principles of quality and customer
pleasure have been brought into question by Japanese manufacturers. The "Just in Time" idea, which
is based on the premise of creating just what is required at the time, is one of the many advancements
in manufacturing processes and management that were pioneered by Japanese companies. (Cleland-
Huang 2016).
According to Khanna (2016), Just-in-time manufacturing entails having product
development with clients and suppliers, solitary supplying, relative vicinity of customers and
suppliers, shortened set-up times, preventive maintenance (including the use of analytical tools to
identify defect sources), and layout (re)configurations for plant optimization. Just-in-time (JIT)
production has gained widespread popularity in recent years. (Peraldi-Frati, 2016). The following
table 1 shows the advantages and disadvantages of JIT.

Table 1 Advantages and Disadvantages of JIT Manufacturing (Created by author according to

Peraldi-Frati, 2016)
Advantages Disadvantages
Less inventory implies less storage space, which There is limited space for error, since small
reduces rent and insurance expenses. inventory is held for reworking defective goods.
Due to the fact that inventory is acquired only when If inventory is not delivered on time, the whole
necessary, less capital investment is locked down in manufacturing schedule might be pushed behind.
stock.
There is a reduced probability of inventory expiring, JIT is a highly responsive style of manufacturing,
becoming outdated, or being out of date. despite the fact that there are no completed goods on
Avoids the accumulation of unsold completed goods hand to fulfil unanticipated orders since all goods are
that might result from unexpected shifts in demand. manufactured to order.
Less time is spent verifying and redoing the work of
others since the focus is on getting the job done
correctly the first time.

According to Kumar et al., (2016), JIT improves productivity and quality. Indian automobile
industry must prioritise JIT approaches to achieve the greatest benefit from JIT deployment. A
manufacturing plant must adopt just-in-time delivery to remain lean and adaptable to changing
market conditions in light of increased product variety, customisation, and consumer expectations.
Indian automakers produced 40 million automobiles on India's highways at once states Klier et al.,
(2016). Due to low private car penetration, growing prosperity, increasing affordability of private
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automobiles, and the significance of exports, the Indian automotive industry has a promising future.
(Konno, 2016). The following paragraphs describes in detail regarding the factors affecting the
future of JIT in automobile sector in India.
The following paragraphs discusses in detail about the factors identified during the literature
evaluation.

2.1. Staff Involvement and Commitment

JIT organisations rely on seamless cooperation from all employees, who are given high
levels of autonomy and accountability for resolving challenges and finishing excellent output states
Davis et al., (2016). JIT demands the right mentality, staff involvement, and growth. Work
commitment is a person's enthusiasm for his or her job obligations. It's a person's feeling of duty to
the organisation he or she works for. (Cleland-Huang, 2016).
High employee satisfaction leads to work commitment and staff engagement. This improves
firm performance, profitability, productivity, worker retention, and the work environment. (Siegle,
2017).

2.1.1. Staff Participation

Participation at work instils pride and job security. Successful companies have great
attitudes and work. All workers are more accountable and can generate fresh ideas and solve
problems. For JIT to be successful, its employees must be respected and appreciated. (Bailey et al.,
2016). JIT organisations rely on seamless cooperation from all employees, who are given high
levels of autonomy and accountability for resolving challenges and finishing excellent output. JIT
demands the right mentality, staff involvement, and growth. (Salaheldin, 2016).

Staff Participation
Employee Attitude aand Success
Awareness
Training and Education
of JIT

Improves the
Staff Involvement
and Commitment

Figure 1 Importance of Staff Involvement and Commitment in JIT (Created by author according to
Aballah et al, 2016).

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 Push system employees typically do tasks automatically. In JIT, production workforce
actively contributes to corporate goals. (Alehi, et al.,2016). Cross-functional worker talents are
needed to accomplish many tasks on multiple machines. Transitioning from push to pull
manufacturing requires careful worker training. Continuous progress depends on insiders'
knowledge and skills. They're best for boosting employment. (Abdallah et al., 2016).
Aforementioned figure 1 shows the importance of staff involvement and commitment in Success of
JIT.
According to Gupta, (2018), Employees contribute through their talents, ideas, and efforts.
Employee engagement develops a sense of community and family inside the company. Motivated
workers perform better, especially when all are engaged in staff management. Cua et al., (2016)
states that managers motivate and retain employees. Employee engagement is crucial to continual
improvement, but their contribution depends on their own capabilities in continuous growth. Staff
must have the information, skills, and competencies to engage in continual development.
Empowered personnel are more involved in development activities, which is vital for continuous
improvement programmes. Training provides employees with the abilities and information
necessary to partake in ongoing improvement, therefore fostering greater engagement. (Lamb
2019).

2.1.2. Employee Attitude and Awareness

According to Eker et al., (2018), JIT's success requires employee awareness and attitude.
When individuals know themselves and the business, they are emotionally in charge and alter their
behaviour to create a joyful, stress-free workplace. A company's objectives and vision are simpler
to achieve when its people collaborate rather than compete. (Fullerton et al., 2016). Employees with
self-awareness may analyse events and people's emotions objectively and appreciate co-workers’
varied opinions. To foster a healthy work environment, companies should help employees develop
self-awareness. (Howsavi et al., 2018).
According to Lee et al., (2016), a few bad employees may harm the entire crew and corporate
earnings. This mentality might drive personnel and consumers to leave over time. To minimise the
effect on others, confront a bad-attitude employee as soon as feasible. Attitude affects personal and
professional life. (Obamiro, 2016). Good work environments make employees more responsive to
their managers and happy at work. Job satisfaction led to less unfavourable views of family and
coworkers. (Bezak et al., 2019).
Promoting self-awareness in employees leads in a motivated, intelligent, and customer-
focused team. (Fortune et al., 2018). Self-assured employees who know their qualities are more
open to fresh ideas. An open-minded approach is welcomed by supervisors, co-workers, and even
12
customers. Self-awareness brings mental clarity and defect acceptance. (Alehi et al., 2016). These
employees are more inclined to take on tough initiatives and enrol in self-development courses. This
helps individuals develop new skills and progress their professions. A company would benefit from
"growing" executives from within instead of recruiting from the outside. (Pinto et al., 2018).

2.1.3. Training and Education

According to Salaheldin (2016), the future and success of JIT is greatly influenced by the
training given by the company to its employees. Training may lead to new knowledge, attitudes, or
behaviours. Human capital theory emphasises training when companies anticipate higher employee
productivity to cover training expenditures like an instructor, materials, and downtime. (Saunders
et al., 2017).
According to Bailey et al., (2016) most organisations utilise on-the-job training (OJT) to
swiftly utilise a large labour pool. On-the-job training is low-cost, rapid, has minimal training time,
and runs concurrently. Basic skill-building. Integrated manufacturing, like JIT, demands more
formal training and advanced skills. (Siegle, 2017). Integrated production involves more frequent,
longer, and better-organized training sessions. Employers and colleagues restrict employees'
potential by providing them with knowledge and technology. Every model requires talent, ambition,
and opportunity. How employees react to changes determines success. (Scott et al., 2019).
Konno (2016) states that JIT personnel who are habituated to their new roles, well-trained,
and dedicated to the company's goals are more productive and take initiative to address problems
when given control over their own work. Once an employee is respected, feels comfortable, and is
a significant part of the company's decision-making and work process, he becomes a permanent
employee. (Suárez‐Barraza et al., 2017).

2.2. Supplier Relationships

According to Gupta (2018), under conventional inventory-based production procedures,

companies place large orders with wholesalers for supplies, and several products may be
manufactured from a single shipment. As production exhausts the original supply of raw materials,
a new order is sent to provide an adequate time cushion states Lamb (2019). On-demand
manufacturing requires firms to find suppliers that can fulfil small, recurring orders quickly.
Regional vendors are commonly used to minimise shipping time and expenses. (Klier et al., 2016).
Without a product or supply stockpile, a supply chain failure may cause delivery delays and
disgruntled consumers. A supply shock, caused by material shortages, natural disasters, or political
instability, might threaten a company's capacity to serve its consumers. (Schwerdfeger, 2018)
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 Large orders may cost a company money, but JIT has additional, less obvious costs. A
corporation that sells fewer items may spend more for raw materials. (Lee et al., 2016). As output
grows, average production costs fall. Large bulk purchases often give enormous quantity reductions.
Smaller, more frequent purchases that don't qualify for price discounts may increase JIT unit prices.
Frequent ordering may have huge cost and environmental impacts. (Schwerdfeger, 2018).
Fullerton et al., (2016) states that Modern firms have many suppliers and complex supply
networks. Customers desire cheaper pricing, squeezing profit margins. Many companies use
supplier relationship management to obtain commodities and resources. Supplier relationship
management boosts earnings.

2.2.1. Delivery in Short Time

The rate of order delivery is a component of supply chain management that is under growing
scrutiny, especially as customer expectations for same-day and next-day delivery and other features
continue to grow. (Abdullah et al., 2016). Just-In-Time (JIT) delivery is a stock management
strategy that expedites product delivery, with particular applications in raw materials orders and
production. (Aoki 2019).
According to Obamiro, (2016), the Just-in-time production happens solely for specific
customer orders; thus, things are pulled rather than pushed through the supply chain. So, production
begins when a customer placed an order, and inventory is given as needed. JIT delivery may boost
profits by reducing inventories. (Eker et al., 2018) Just-In-Time services entail making and
delivering completed items when they're needed for sale, semi-finished goods when they're needed
for assembly into finished goods, and semi-finished goods' parts, components, or raw materials.
(Carnerud et al., 2018).
Assembly and packaging operations in the supply chain do not store materials on-site;
supplies are only received when ready to be included in outgoing orders. (Kaneko et al., 2016). Just-
in-time logistics reduces inventory costs and frees up space for variable components. Just-in-time
delivery cuts inventory storage and administrative costs, but it's difficult to estimate demand.
(Khanna, 2016). Many customers admire JIT inventory's ability to give extra goods on short notice
(particularly when a delivery wasn't planned in advance) or meet unanticipated demand swings.
(Peraldi-Frati, 2016).

2.2.2. Reduction in Paperwork

SMBs would rather remove paper to save time, money, and security risks. Mobile forms and
data collection tools may help an organization's growth and efficiency. (Hugh, 2017).

14
 According to Kumar et al., (2016), without a digital approach, field data on paper must be
returned to the office for analysis. If the document isn't immediately uploaded, it must be filed
appropriately for subsequent review. Paper documents are easily lost or damaged. Digital
technology has improved information flow and administration across industries. (Tubbs, 2016).
Mobile technology has boosted accuracy and cut delivery times in the supply chain business
over the previous decade. Digital data and mobile forms reduce the need to handle paper boxes.
Transport, storage, sharing, and cooperation will be streamlined. These ingredients boost efficiency.
(Serpanos et al., 2018).

2.2.3. Supply of Good Quality Materials

According to Davis et al., (2016), JIT supply networks provide materials before production.
Synchronizing activities decreases the need to keep many items in a warehouse. Just-in-time
ordering reduces delays and costs. Always have ample supplies. Streamlining operations, reducing
storage costs, and knowing the supply chain are all benefits. (Baily et al., 2016). JIT calculates
stock levels this way. Using the right application increases corporate productivity, quality, and
reliability. Synchronizing distribution and production reduces inventory. (Stamatis, 2016).
Alehi et al., (2016) states that JIT benefits suppliers and consumers since the provider knows
exactly how much and when to deliver a product. This leads in reduced stock expenses and fresher
perishable goods. It's directly productive and needs no storage. (Weschke, 2016).
According to Abdallah et al., (2016), Manufacturers stock raw ingredients and completed
goods. JIT minimises inventory. Regularly sent smaller money. This is industrial output. Both
supplier and manufacturer must monitor costs. Fee hikes aren't cost-effective. A greater supply may
be helpful. Orders determine raw material demands. (Omri, 2021).

2.3. Level of Inventories

Wallach, (2011) states that the JIT inventory management ensures that inventory arrives
exactly when it is needed for production or to meet consumer demand, and no earlier. The goal is
to reduce waste and increase operational efficiency. JIT requires long-term partnerships with
reputable suppliers since quality, not price, is often the major goal. (Friess et al., 2016).
When evaluating delivery amount, consider delivery distance. When the distance is too far,
a larger order may be beneficial. JIT's exact margins prevent errors. (Cua et al., 2016). Suppliers
must respond quickly to producer requests. Client needs minimal inventory. Suppliers must have a
security stock to ensure manufacturing continuity (safety stock). The supplier can quickly provide

15
requested materials. This burdens the material supplier. Electronic inventory systems simplify the
processes. (Luis, 2018).
Typically, an inventory system comprises of a host computer and a local computer that are
connected in real-time. (Lee et al., 2016). Each computer has its own database, allowing data to be
modified and distributed to other computers about JIT stock components. The computer that gathers
all of this information may utilise it to update the stock level states. (Guo et al., 2016).

2.3.1. Raw Material Inventory

Zhong et al., (2016), states that ideally, JIT production or purchasing eliminates inventory.
Reducing inventory reduces handling and storage costs. It frees up room for cheaper projects. (Luis,
2018) Just-in-time inventory cuts overhead expenses while ensuring manufacturing components are
always available. This improves customer service and reduces operational costs. (Peraldi-Frati,
2016).
Overstocking may be expensive. Reducing inventory may reduce carrying costs. Just-in-
time inventory companies may eliminate or reduce their warehouses. (Cleland-Huang, et al., 2016).
An efficient supply chain may reduce manufacturing costs, which may be passed on to
consumers. This boosts the company's market share and competitiveness. (Lee et al., 2016). JIT
releases company resources by reducing inventories. Using JIT, a retailer may change its warehouse
to add retail space without expanding. (Luis, 2018).
According to Salaheldin, (2016), A company may enhance production by switching
warehouse space to manufacturing. JIT allows staff to focus on manufacturing things and interacting
with customers, rather than keeping supplies. With JIT, manufacturers would know when employees
are needed at different assembly locations to meet demand. (Luis, 2018).
A flexible workforce can produce high-quality items with fewer flaws, lowering costs and
boosting customer satisfaction. To make JIT practical, management must reinvent the company's
work cycle from raw materials to finished product. (Fullerton et al., 2016). Supply-chain
relationships may need several suppliers, close locations, and quick delivery. JIT's smaller orders
are a drawback. Minimum order criteria may need more debate. The inventory expense may offset
a little higher price. (Zhong et al., 2016).
The greatest advantage of just-in-time manufacturing is the removal of raw material,
inventory, and product storage expenses. Historically, raw materials and completed products
inventories were considered assets. Due to JIT, inventory is now seen as a waste or a dead
investment, which incurs extra expenditures. (Zhang et al., 2016).

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2.3.2. Finished Goods Inventories

The finished products inventory is the entire amount of stock that can be sold to customers.
(Luis, 2018). A seller's completed items may become a buyer's raw materials. Finished Goods
Inventory is the ultimate stage of inventories that have finished the production process and consists
of commodities that have acquired their final form and are suitable for sale to end consumers. (Guo
et al., 2016).
According to Obamiro, (2016), since completed products inventory will be sold within a
year, it's a short-term asset. On the balance sheet, completed product inventory, raw material, and
work-in-process expenses are grouped under "Inventory." Consider a company that implements
just-in-time production yet maintains a buffer of completed items. Classical inventory theory may
be used to analyse finished-item inventories to quantify inventory costs and schedule stability.
(Friess et al., 2016).
Calculating the value of finished products inventory may assist company managers
comprehend the worth of their inventory and record it as an asset on the balance sheet.
Understanding the real worth of produced stock is crucial for minimising material waste, assessing
profitability, and optimising inventory management operations (Al-Hyari et al., 2020).

2.4. Quality and Waste Reduction Aspects

Just-in-time, or JIT, refers to the manufacturing of items and services as needed, such as
when a new firm starts creating steering shafts. Under JIT, the company will build up machines to
create jobs sequentially, from those that gather metals to those who send product. (Friess et al.,
2016). Each station accepts the task order, performs their obligations, and then sends the product to
the next station. (Álvarez et al., 2018). Along the way, the product is examined for flaws, and if any
are discovered, manufacturing is stopped. The shipping company will send the goods to the
customer. Manufacturing didn't begin until the order was received, and goods weren't retained in
inventory awaiting completion of a prior item. (Prayuda, 2020).

2.4.1. Product Quality

Davis et al., (2016) states that JIT-Driven Quality management improves quality by
combining inventory, quality, and production management. First, it emphasises making quality
everyone's responsibility, then quality control methods. Motivated, respected, engaged, and self-
directed employees perform best. (Khanna, 2016). Each action is checked for quality. Supervisors
help them build and interpret control charts. Managers promote quality over speed. Personnel may
stop the line or cell if quality issues are identified. (Suárez‐Barraza et al., 2017).
17
 JIT needs small-quantity component purchases. Small lots save time and space. Less space
and time need fewer workers and resources states Carnerud et al., (2018). Small batches are easy to
examine and identify issues quickly. Small-lot components help to higher quality and productivity
by reducing inventory and scrap, lowering inspection costs, and identifying defects early. JIT-based
approaches may improve product quality and productivity, but companies must execute them in a
way that fits their structure, design, and processes. (Prayuda, 2020). According to Aoki (2019) the
JIT manufacturing makes product improvements by:
• Eliminate any activity that doesn't offer value to product
• Devising systems to spot issues.
• Simpler systems are simpler to understand, manage, and error-proof.
• A product-oriented structure decreases supply and component travel time.
• Quality control at the source – each employee is accountable for the quality of his or her own
product.
• Regular preventive maintenance, Total productive maintenance involves continually improving
and maintaining all machinery and equipment.

2.4.2. Waste Reduction Protocols

JIT inventory management guarantees that inventory arrives precisely when it is required
for manufacturing or to fulfil customer demand, and no earlier. (Saunders et al., 2017). The objective
is to minimise waste and improve operating efficiency. JIT needs long-term relationships with
dependable suppliers since the primary focus is often quality and not pricing. (Scott et al., 2019).
Aoki (2019) states that JIT manufacturing includes design engineering, raw material
conversion, and delivery. Just-in-Time strives to have just enough inventory when needed, increase
quality to zero defects, reduce lead times by lowering setup times, queue lengths, and lot sizes, and
do it at the lowest possible cost. (Carnerud et al., 2018). Lean manufacturing reduces waste to
optimise operations. JIT lowers production chain WIP. From suppliers through production to
consumers, there are little delays or disruptions, especially in industrial work centres. The plant and
its operation must be altered to adopt JIT. (Pinto et al., 2018).
Suárez‐Barraza et al., (2017) suggests that Strong worldwide competition led India's
automotive sector to adopt new technology to enhance operations and products. JIT, mass
customisation, "zero mistake production," and cycle time reduction are automotive strategies.
Automotive companies use IT to manage operations. Although the Indian Automotive Industry has
made progress, supply chain management needs work. (Turner et al., 2018).

18
 JIT is advantageous in most situations, including the Indian automobile industry. Waste
detection, removal, and development are its tenets. In a country with minimal resources, this is vital.
Indian auto component makers thrive at JIT. (Álvarez et al., 2018). Several companies employ JIT
inventory management on the supply side (inbound). Just-in-time inventory management has
increased automobile industry productivity. (Fortune et al., 2018).

2.4.3. Reduction of Defects

Production disruptions and order fulfilment delays cause manufacturing defects. JIT keeps
production flowing, eliminates waste, and lowers failure rate. Quality development cooperation with
suppliers and customers enhances business relationships. (Bryde et al., 2019).
Álvarez et al., (2018) states that when something is created incorrectly, it has a flawed
production procedure. Manufacturing mistakes may arise if the maker employs the incorrect
materials or doesn't regulate quality. Manufacturing mistakes are human or mechanical. Poor
manufacturing reduces consumer satisfaction. Product liability law recognises several causes. (Baily
et al., 2016). Manufacturing errors account for a large portion of defective product claims, despite
the fact that a defect might occur at any point of a product's life (from design through warning
labels). (Howsavi et al., 2019).
Fortune et al., (2018) states that Manufacture errors occur when a product's design is safe
and purchasers are informed of any prospective dangers, but a fault arises due to incorrect
manufacturing. In any industry, from medicine to cars, manufacturing errors may happen for many
reasons. (Besner et al., 2019).
For instance, a manufacturer may choose a material that is excessively flimsy for its intended
usage, hence increasing the likelihood of its breaking. Or, while building a product, producers may
not adhere as precisely as they should to the design. (Stamatis, 2016). In the end, engineering is a
precise, difficult discipline that demands careful calculation. When manufacturers fail to adhere to
design specifications, the repercussions may be severe. (Omri, 2021).
Unfortunately, cost-cutting strategies are sometimes responsible for these blunders. A
manufacturer may attempt to save money by compromising a product's design, or it may fail to
implement enough quality controls to guarantee that each product is safe for purchase. (Omri, 2021).

2.5. Production Aspects

Klier et al., (2016) states that JIT reduces waste by streamlining manufacturing and lowering
inventory. JIT involves producing what's required, when it's needed, and in the appropriate volume.

19
It's demand-pull, not production-push. Just-in-time also improves supplier and customer response
and delivery times. (Stamatis, 2016).

2.5.1. Productivity

According to Abdallah et al., (2016), lean manufacturing decreases cycle, flow, and
throughput times. This productivity boost speeds product delivery, reducing costs and increasing
customer satisfaction. A JIT system lets companies adapt swiftly to changing conditions. (Fullerton
et al., 2016). In addition to obsolescence, businesses must pay for storage, delivery, handling,
insurance, and warehouse rentals. In addition, difficulties with inventory management might result
in bottlenecks and shortages of critical components. (Stamatis, 2016).
Any system that matches inventory demand and supply has operational advantages. Minimal
inventory improves cash flow, storage expenses, and carrying costs. Lean manufacturing is driven
by customer demand, reducing the need for inventories. (Serpanos et al., 2018).
Another advantage of JIT is its compatibility with other common techniques to productivity
development. These include Toyota's Kanban system for continuous improvement and TQM, or
total quality management. (Omri, 2021). Clearly, any JIT system requires highly organised and
timely information flows to guarantee that the whole system is optimised. It needs, for example, a
system to monitor, analyse, interpret, and report essential metrics. (Lee et al., 2016) Fortunately,
such a system exists. In manufacturing, production costs and time to market may make or destroy a
corporation. Just-in-time (JIT) manufacturing is a workflow approach that aims to reduce flow times
inside production systems as well as supplier and customer reaction times. (Lamb, 2019).

2.5.2. Process Capacity and Space Utilization

Cua et al., (2016) states that JIT aids service providers in their attempts to more precisely
plan and manage capacity. This reduces total capital expenditures and operating expenditures while
ensuring service quality. Regarding capacity planning, it is adaptable, dependable, rapid, and cost-
effective. (Tubbs, 2016).

20
 Staff
Involvement
and
Commitment

Production Supplier
Aspects Relationships
Factors
Affecting
the Future
of JIT

Quality and
waste Level of
reduction Inventories
aspects

Figure 2 Factors Affecting the Future of JIT (Created by the author).

Kumar et al., (2016) states that given the pace of demand growth, the automobile indusrtes
are now attempting to deploy a Just-In-Time Capacity Management Solution. In addition to
effective traffic control, it decreases operating expenses. The aforementioned figure 2 gives an
overview of the factors affecting the future of JIT as a tool for manufacturing in Indian automobile
Industry.
Hugh, (2017) states that the delivery process challenges need a resource-intensive and time-
consuming re-planning of the network design and distribution. JIT requires service providers to
predict demand quickly. This approach disturbs the whole telecom network. If a single transmission
point fails, the whole chain may be shut off. (Cleland-Huang et al., 2016).

2.6. Recent Advancements In JIT

Konno et al., (2016) states that the Japanese administrative management technology,
particularly the Toyota Production System, has made the most significant contribution to our world
in recent decades. Manufacturing quality control known as "JIT" (Just in Time) was employed to
ensure the great performance of this system.

21
 New TDS
(Total Development System)

New TMS
(Total Marketing System)

Scientific SQC
(Scientific Statistical Quality Control)

Advancements Management SQC

(Management Statistical Quality
in JIT Control)

Integrated SQC
(Integrated Statistical Quality
Control)

New TPS
(New Toyota Production System

TQM-S
Total Quality Management Using
Science

Figure 3 Advancements in JIT (Created by author according to Serphanos et al., 2018).

There are several examples of a well-known and well-respected corporation faltering
because of unforeseen quality difficulties. This background necessitates an upgrade in Japanese
administrative management technology. (Eker et al., 2016). Global marketers who want to flourish
in the 21st century must establish a top-notch quality management system that can wow customers
while delivering high-quality goods on schedule via corporate management for manufacturing.
(Serphanos et al., 2018). The aforementioned figure 3 shows the recent advancements in JIT.
There are three core elements of "Total Development System (TDS), (Serphanos et al.,
2018).
• Total Production System (TPS)
• Total Marketing System (TMS)" in the "New JIT," or New Management Technology Principle.
• Hardware and software systems that are proposed for transforming manufacturing management.
These are "TQM-S, TQM by using Science SQC, New Quality Control Principle," or "Science
TQA, New Quality Management Principle."

22
 Table 2 Summarization of Overall Factors from the Perspectives of Literatures (Created by
author).
Main Factors Subfactors References
Staff Involvement Staff Participation Bailey et al., (2016), Salaheldin, (2016),
and Commitment Alehi et al., (2016), Abdallah et al., (2016).
Gupta, (2018), Cua et al., (2016), Lamb
(2019).
Employee Attitude and Awareness Eker et al., (2018), Fullerton et al., (2016),
Howsavi et al., (2018). Lee et al., (2016)
Obamiro, (2016), Bezak et al., (2019),
Fortune et al., (2018), Alehi et al., (2016),
Pinto et al., (2018).
Training and Education Salaheldin (2016), Saunders et al., (2017),
Bailey et al., (2016). Siegle, (2017) Scott et
al., (2019), Konno (2016) Suárez‐Barraza
et al., (2017).
Supplier Delivery in Short Time Abdullah et al., (2016), Aoki (2019).
Relationships Obamiro, (2016), Eker et al., (2018),
Carnerud et al., (2018). Kaneko et al.,
(2016), Khanna, (2016), Peraldi-Frati,
(2016).
Reduction in Paperwork Hugh, (2017), Kumar et al., (2016), Tubbs,
(2016), Serpanos et al., (2018).
Consistent Supply of Good Quality Davis et al., (2016), Baily et al., (2016),
Material Stamatis, (2016), Alehi et al., (2016),
Weschke, (2016), Abdallah et al., (2016),
Omri, (2021).
Level of Inventories Reduction in Raw Material Inventory Luis, (2018), Peraldi-Frati, (2016),
Cleland-Huang, et al., (2016). Lee et al.,
(2016), Luis, (2018). Salaheldin, (2016),
Fullerton et al., (2016), Zhong et al.,
(2016). Zhang et al., (2016).
Reduction in Finished Goods Inventory Luis, (2018), Guo et al., (2016), Obamiro
(2016), Friess et al., (2016), Al-Hyari et al.,
(2020).
Quality and Waste Improvements in Product Quality Davis et al., (2016), Khanna, (2016).
Reduction Aspects Suárez‐Barraza et al., (2017). Carnerud et
al., (2018). Prayuda, 2020), Aoki (2019).
Waste Reduction Protocols Saunders et al., (2017), Scott et al., (2019),
Aoki (2019), Carnerud et al., (2018), Pinto
et al., (2018),
Suárez‐Barraza et al., (2017), Turner et al.,
(2018), Álvarez et al., (2018). Fortune et
al., (2018).
Reduction of Defects Bryde et al., (2018), Álvarez et al., (2018),
Baily et al., (2016), Howsavi et al., (2019),
Fortune et al., (2018) Besner et al., (2019),
Stamatis, (2016), Omri, (2021).
Production Aspects Improvements in Productivity Abdallah et al., (2016), Fullerton et al.,
(2016), Stamatis, (2016), Serpanos et al.,
(2018), Omri, (2021), Lee et al., (2016)
Lamb, (2019).
Improvements of Process Capacity Cua et al., (2016), Tubbs, (2016), Kumar et
al., (2016), Hugh, (2017), Cleland-Huang
et al., (2016).

23
 Gupta (2018) states that for achieving customer-focused manufacturing, construct a crucial
fundamental technology before changing the business process for engineering design divisions'
technical development. In manufacturing, global supply networks need innovative production
technology and process management. The aforementioned table 2 outlines the factors identified
from the literature review.

2.7. Gap Identified in The Literature Review

By taking into account the points of view of a variety of authors, the author, in the course of
doing the literature review, comes to the conclusion that there is a gap in the previously published
material. The author comes to the conclusion that there is a lack of coverage in other literatures of
the elements Staff Involvement and Commitment, Supplier Relationships, Inventory Levels, Quality
Aspects, and Production Aspects, which are demonstrated to impact the JIT implementation process
in the Indian automobile industry. Additionally, there is a lack of coverage in other literatures of the
future positive improvements of JIT. These all findings make this research work unique. The
following conclusions can be drawn from this section.
• A brief history of JIT is provided.
• As a response to the study question 1: What factors will impact the future of just-in-time
inventory management in the Indian vehicle industry? From a comprehensive examination of
the literature, the author identified five major characteristics that influence the quality of service
in the Indian Automobile Industry. In addition to these five primary determinants, 13 subfactors
were also found. The following are the primary factors:
• Factors at the employee level that influence JIT in the automobile sector have been examined in
depth.
• The role of Supplier Relationship in the implementation of Just-In-Time (JIT) is investigated.
• The significance of the Level of Inventories, Quality and Waste Reduction Aspects, and
Production Aspects impacting Just-In-Time (JIT) is explored.
• Recent developments in JIT are discussed.

24
 CHAPTER 3
3. METHODOLOGY

3.1. Research Outline and Overall Approach

According to Igwenagu (2016), research methods are the approaches or tactics used to find,
select, analyse, and evaluate relevant content. If a research paper's methodology is well-written, the
reader can objectively evaluate the study's validity and reliability. While creating the method section
may seem simple, it may be complicated since each component is interrelated and the
implementation of each approach might be challenging. A well-structured section that incorporates
all the major research paper components serves as a template. The following is a proposed structure
for an empirical study's methodological section, from broad to specialised aspects.
• The Inquiry's Logic (Quantitative) - Specify if inductive or deductive reasoning was used. A
qualitative or quantitative study should be apparent. Justify their approach selection by relating
it to the subject of their study. As with the encompassing component, methodology tends to
embrace all other elements. Figure 4's research onion suggests that strategies may include action
research, experimental research, interviews, surveys, case study research, or a full literature
review. The methodology is determined based on the needs for research data and the purpose of
the inquiry. Saunders et al. (2016) separated the study onion into three degrees of choice: 1. First
two outer rings, i.e., Research philosophy and Research approach; 2. Research design, which
includes (a) methodological choices, (b) research strategy, and (c) time horizon; and (3) tactics,
i.e., the inner core of the research onion, which comprises data collection and analysis
characteristics.
• The research philosophy used in this research is Positivism, the research approach is Induction
since it begins by collecting data that is relevant to the topic of interest, the methodological
choice is Mono Method Quantitative since it uses only one type of method, research strategy is
Survey, and the time horizon is Cross- Sectional.
In order to get the desired results, firms collect primary data via a comprehensive survey of
their quality engineers and automobile engineers. In India, a province in South Asia, the author
decided to undertake a systematic online survey utilising Google Forms or a similar platform. The
emphasis of this component of the study was the experience of vehicle-manufacturing companies
situated in Kerala. The main strategy to this study is exploratory analysis, which is a good method
for getting outstanding data for this article. Systematic study primarily uses a descriptive method to
explore the many factors impacting the future of sustainable Just in Time as a tool for inventory
management in the automobile industry in India.
25
 Figure 4 Overall Methodological Approach of the Research (Created by author)

In order to perform an online survey, the primary information is gathered using a social
media site. The author performed the research by emailing questions to quality engineers and
automobile engineers using Google forms. Science Direct and Google Scholar provide access to
secondary sources from scholarly publications.

3.2. Gathering of Data- Primary

Primary data refers to information collected by researchers directly from original sources or
via direct inquiry. Google forms are used to deliver a self-structured questionnaire and a survey
form to quality engineers and automobile engineers in order to collect the main data. The following
figure 5 outlines the overall design of the questionnaire.

26
 Section I- Respondent's Consent for Participating in the Survey

Section II- Staff Involvement and Commitment

5 Statements

Section III- Supplier Relationship

3 Statements

Section IV- Level of Inventories

3 Statements

Section V- Quality and Waste Reduction Aspects

3 Statements

Production Aspects
3 Statements

Figure 5 Overall Structure of the Questionnaire (Created by author).

There were 146 responses to the survey, and 141 were chosen as a representative sample
size based on the selection criteria.
Instructions for the Survey
An online questionnaire is prepared with the assistance of numerous specialists in the
automobile industry. The questions were aimed to elicit responses about the variables influencing
the future of sustainable just in time as a tool for inventory management in the Indian automobile
industry. In a Google form, there are 18 questions organised into distinct parts. The survey is
administered online with the assistance of research-related social media groups. The respondents
must be quality engineers or automobile engineers. The survey will be administered for twenty days.
The methods for conducting the survey are described in detail below.
• Participants should consist of a quality engineer or an automotive engineer.
• Participants must be familiarized with the various inventory management approaches.
• Participants should be aware of the advantages and disadvantages of Just-in-Time (JIT).

27
3.3. Sample Size, Selection and Calculation

Sample selection chooses a representative sample from the investigated population. Google
Forms are used to create the survey questionnaire, which is then disseminated by Email and
Facebook.
Response Rate
Participation rate is derived by dividing total survey questions by total complete replies.
Table 3 shows the data analysis results. 146 people accepted the thesis' 200 invitations.
Table 3 summarises the work's empirical evaluation. A high research return rate ensures that
findings are reflective of the target group and that the questionnaire is working. Convenience
sampling selects the sample. Participants without JIT experience in the car sector were removed.
Quality or car engineers should react.

Table 3 Data Analysis- Outline (Created by the author).

Without prior understanding of the JIT in the automotive industry, the survey, in the author's
opinion, is meaningless. 146 responses in all were gathered during the survey's duration. Since 5
responders didn’t gave the consent for participating in the survey, a representative sample of 141
responses is selected for analysis.

3.4. Data Gathering- Secondary

Secondary, or desk, research uses freshly collected data. Current data is summarised to boost
research efficacy. Secondary research uses study papers and similar publications. These materials
are available via surveys, libraries, and the internet. Many non-profit and government entities
preserve data for research.
Search Parameters
Using Science Direct and Google Scholar between 2016 and 2022, all of the articles for this
research were obtained. As part of the paradigm of this thesis, web resources pertaining to JIT in
28
automobile Industry are also studied. The following table 4 shows the keywords and number of
articles.

Table 4 Search Strings (Created by author)

Keywords Number of articles
allintitle: " Just in Time Manufacturing " 47
allintitle: " Just in Time inventory 14
management "
allintitle: " Just in Time " automobile industry 1
allintitle: " Just in Time logistics " 7

The papers are generated by using keyword searches that are more specific to the study topic
and research field. Because there is a dearth of literature on the industries of India, overseas papers
were also evaluated.

Table 5 Inclusion and Exclusion Criteria (Created by author)

Norms for Inclusion Exclusion Criteria for Resources

The search results are sorted by relevancy ⚫ Articles written in languages other
to the research query. Only articles meeting the than English.
criteria were reviewed. These are the criteria:
• Articles are needed to be written in English. ⚫ Articles that do not meet the
• Has the paper focused largely on JIT in the standards.
automobile industry? ⚫ This research does not seem to
• Does the paper explain the several variables include any textbook chapters, book
that affect JIT inventory management? reviews, encyclopaedia articles, or
• Does the substance of the publications conference proceedings.
elaborate on JIT's future developments?

The articles are selected using four strings of search method. A total of 69 publications were
located, and 44 articles and four websites were selected based on their relevance and perspectives
on JIT as a tool for inventory management in automobile industry. The aforementioned table 5
shows the inclusion and exclusion criteria of the secondary data collection. Contrary to this, articles
that did not meet the criteria were omitted from the search results. In addition, no book chapters,
book reviews, encyclopaedia entries, or conference articles were included in the study.

29
3.5. Techniques of Data Analysis

Data analysis employs mathematical and conceptual methods to explain the context of the
data, modularize the database architecture, compress the data representation, and investigate
statistical patterns, probability data, and standard focus. These methodological strategies reduce data
noise to establish the fundamental conclusion. Since data production is a continual activity, data
analysis is also ongoing and iterative. Data integrity is crucial to data analysis. This section discusses
the investigation's data analysis procedures. (Belotto, 2018).

3.5.1. Descriptive Statistics

By showing, summarising, or interpreting data points in a useful manner, descriptive

analysis facilitates the generation of designs that meet all of the data's requirements. Data
aggregation and data mining are two descriptive analytic techniques that may be used to retrieve
records. In order to make databases more accessible, data is collected and then arranged via content
aggregation. Descriptive statistics help in summarising and understanding the features of a data
collection by providing a succinct description of the sample and data measures. In mathematics and
statistics, the mean, median, and mode are three often utilised descriptive statistics. (Yellapu, 2018).

3.5.2. Factor Analysis

A data reduction technique called factor analysis aids in the study of challenging-to-measure
subjects. Factor analysis provides very straightforward and relevant insights by condensing a large
number of variables to a small number of job components. Through the use of this technique, one
may more easily identify patterns and themes in various databases, enabling them to be used to
identify the characteristics that the data points share. These are the objectives of factor analysis
according to DeCoster (1998).
• Figure out the exact number of elements required to identify recurring themes in a group of data.
• Assess the degree to which each variable in the dataset is related to a common theme or
component.
• Provide an understanding of the common variables within the dataset.
• Determine the extent to which each observed data point corresponds to each theme or
component.
Versions of Factoring
• Principal Component Analysis- Principal Component Analysis Principal Component analysis
is the approach most often used by academics. In PCA, the most variance is extracted and
assigned to the first factor. After subtracting the variance represented by the first two
30
 components, the maximum variance of the second factor is extracted. From this procedure
derives the final component.
• Common Factor Analysis - It is the second most popular method among academics since it
detects and dissects common variance. This method does not account for the distinct variation
of each variable. This technique is used in SEM (Structural Equation Modelling).
• Image Factoring - This methodology uses the correlation matrix. In image factoring, the OLS
Regression approach is used to predict the factor.
• Maximum Likelihood Manner - This strategy also uses the association measure, but its factors
using the most probable method.
Factor loading is the variable-factor correlation. Factor loading shows a variable's
contribution to a factor. In SEM, a factor loading of 0.7 or higher minimises variable variation.
Eigenvalues are distinctive roots. A factor's eigenvalues reflect how much variation it
explains. The commonality column shows how much of the overall variance the first component
explains. When one component explains 68% of the variation, another explains 32%.
Component score = factor score. This sum of row and column scores is used to index and
analyse all variables. Multiplying a frequent phrase normalises this score. We'll presume that,
regardless of our study with this factor score, all factors will alter.
This study uses PCA to factor. PCA adds dimensions to reduce duplicate data characteristics
(or also referred to as components). Linearly integrated with the original variables. Data are
deconstructed using PCA, which transforms correlated variables into uncorrelated ones. Volatility
is a data collection's main component. PCA rotates each variable's axis. Each axis is a new
dimension. The component's eigenvalue shows the dataset direction that explains the most variation.

Factors as a Mathematical Representation

Utilizing the straight-line equation, the factors are computed. An equation similar to that of
a linear model is used to describe the analysis's components.

𝑌𝑖 = 𝑏1 𝑋1𝑖 + 𝑏2 𝑋2𝑖 +. . . +𝑏𝑛 𝑋𝑚𝑖 + εi , (3.1)

F𝑎𝑐𝑡𝑜𝑟𝑖 = 𝑏1 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒1𝑖 + 𝑏2 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒2𝑖 +. . . +𝑏𝑛 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑚𝑖 + εi , (3.2)

Where,
bs represents the factor loadings
M represent number of variables
The axial loads of each constant on another component may alternatively be represented as
a matrix, with the columns representing the factors and the rows indicating the factor loading of
31
each variable on each factor. Commonly, the matrix is referred to as the letter 'A.' This matrix is
also known as the factor matrix or component matrix when Principal component analysis is used.
Steps in Factor Analysis
• Collecting Data: Multiple channels are used to collect main and secondary data from the
sampled population. Researchers collect survey data using many methods, including internet,
telephone, and face-to-face interviews. The technique of data collection influences how many
individuals will be contacted for survey responses.
• Data must be filtered prior to constructing the correlation matrix: The objective is to improve
"signal" while minimising "noise" by inspecting data for flaws and correcting or deleting them.
• Extraction of Factors: This approach for component separation minimises the total squared
differences between the measured and regenerated coordinates. Elevated factors have a lower
value than minimal factors; hence, relationships are valued contrary to their uniqueness.
• Rotate the elements to enhance the data's interpretability: Rotating pieces should aid
comprehension. Rotate factors. Varimax Method orthogonally rotates variables with high
component loads. This clarifies variables. Near-zero loads have little impact on the variable.
High variable loadings may have several causes. Rotation helps clarify factor loadings.
Coefficients relate variables to factors.
• Measurement Validity and Accuracy: Calculate the correlation between measurement and
guideline evaluation results to evaluate the validity of criteria. If the link is strong, it is a strong
indicator that their test examines what it promises to examine.
Statistical Validity
Validity and adequate sampling are evaluated using the Kaiser-Meyer-Olkin (KMO) and
Bartlett's Tests. It may be used to determine if the value distribution is appropriate for a factorial
study.
⚫ KMO (Kaiser-Meyer-Olkin) Test
Kaiser–Meyer–Olkin (KMO) is another method for calculating factor loadings. The research
evaluates each participant's choice and the overall framework. The metric measures parameter
fluctuation. KMO returns 0-1 KMO scores between 0.8 and 1 suggest appropriate data collection.
KMO scores below 0.6 suggest a need for corrective action. Table 6 lists KMO values and
interpretations.

32
Table 6 The values of KMO and interpretations based on these values (George and Mallery, 2003)

When a KMO of at least 0.60 is attained, factor analysis is considered to begin.

Limitations of Methodology
• It could only obtain information for the years 2016 through 2021.
• Different businesses may have different criteria for inventory management.
• Only factors impacting the Indian automobile industry are addressed.
• Lack of relevant past research studies
• Since this methodology uses only 48 articles the information gathered are limited, and for
expanding the research subject, more articles can be incorporated.
• This methodology is limited for a specific time period, and improvements should be done for
increasing the time period.
• This methodology is focussed mainly on quantitative approaches, and hence it cannot be used
for preparation of an interview questionnaire for gathering expert opinion.
Ethical Approval

Most study requires ethical approval for the following reasons: to ensure the research is
performed in a responsible and morally accountable manner; Reduce the potential for human and
animal damage, and. Ensure that the study ultimately yields positive results. (Sunelle, 2018).
The author developed and submitted an ethics application form to the ethics approval
committee. The completion of the ethical approval took more than one week. After gaining ethical
approval, the author started primary data collection. Participants have the opportunity to choose
whether or not to participate in the survey by granting permission. They may indicate their
agreement on the consent form if they agree to participate. If they are unprepared, they may
terminate the survey. To avoid any ethical or security concerns, the following survey questions do
not demand any personal information or information about the respondent's job or the organization's
technology. Instead, the purpose of this survey is to collect the ideas and opinions of all industry
members. In addition, participants were assured complete anonymity, and there was no identifying
information about them in the poll's transcript. Only the designer of the poll had access to the Google

33
Forms, ensuring the highest level of confidentiality. Personal details, such as the name, were
excluded from the analysis and hence kept confidential.
Conclusion

In conclusion this chapter describes the study technique used to conduct a comprehensive
evaluation of the factors that would impact the future of just-in-time inventory management in the
Indian automobile industry. Inferences may be drawn from this part as follows:
• It is anticipated that the Methodology section will explain the research choices by demonstrating
that the selected procedures and techniques are optimally suited to the study's goals and
objectives and will provide valid and trustworthy results.
• It was decided to adopt an exploratory and quantitative technique for this research, and a number
of web-based sources were used to collect data.
• The author chose a few well-known automakers and sent them the Google form link over
WhatsApp and email to contact quality engineers and automobile engineers in India. The author
chose LinkedIn groups of Six Sigma Experts in India and send the Google Form link.

34
 4. FINDINGS

4.1. Identification of Factors affecting the Future of JIT as a Tool for Inventory Management

In the study of relevant literature, the author identified five main components and thirteen
subfactors. These were utilised to build an expert questionnaire. Each component has been grouped
in the questionnaire and questions pertinent to it have been provided. This questionnaire's responses
are used for factor analysis. Participants were given the option to engage via their WhatsApp groups,
Email, and LinkedIn groups. Automobile engineers, quality engineers, and trained six sigma
professionals from diverse companies were chosen as participants. Table 7 offers a summary of the
parameters uncovered by the literature review.

Table 7 Overview of the Factors Identified from the Literature Review (Created by the author)

35
 (Table 7 Continues)

The following figure 6 outlines the main factors and the subfactors identified from the
literature.

Staff
Involvement
and
Commitment
• Staff
Participation
• Employee
Attitude and
Awareness
• Training and
Education

Future of JIT as a Tool

for Inventory
Management in
Automobile Industry
in India

Figure 6 Factors affecting the Future of JIT as a Tool for Inventory Management in Automobile
Industry in India (Created by author).
36
 The following table 8 explains about the descriptive statistics of the responses obtained from
survey.

Table 8 Outline of Descriptive Statistics of the Survey Data (Created by the author).
Factor Mean Std. Deviation Sum
Staff Participation 2.979 0.9597 420.0
Employee attitude 2.993 1.1433 422.0
and Awareness
Training and 3.440 1.4361 485.0
education
Delivery in short 2.589 0.9492 365.0
time
Reduction in Paper 2.979 1.0259 376.0
work
Supply of good 3.411 0.9861 481.0
quality Materials
Raw material 3.404 1.0953 480.0
inventory
Finished goods 3.418 0.9795 482.0
inventory
Product Quality 3.539 0.9221 499.0
Waste reduction 2.624 1.0038 670.0
Protocols
Reduction of 3.128 0.9551 441.0
Defects
Productivity 3.567 0.9204 503.0
Process Capacity 3.638 0.8559 513.0
Space Utilization 3.298 0.9691 465.0

The survey consisted of 17 questions arranged in sections. The participants were the
automobile engineers and quality engineers from different automobile industries in India. In all, 146
answers were collected over the survey's length. Due to the fact that 5 respondents declined to
participate in the survey, a representative sample of 141 answers is chosen for analysis.
Conclusion

As a conclusion the author can say that the section shows the findings from the literature
review and the descriptive survey data. The author found five major components and thirteen
subfactors via an examination of relevant literature. These were used to develop a questionnaire for
experts. Each component has been categorised and questions pertaining to it have been included in
the questionnaire.
• The primary variables found by the literature study are outlined, and their citations are
provided.
• There is a quick example of the general components.
37
• It has been given with a summary of the descriptive statistics.
• The next section discusses the factor analysis and discussions of the study project.

38
 5. ANALYSIS AND DISCUSSION

5.1. Analysis of the Factors Affecting the Future of JIT as a Tool for Inventory Management

The next step is to undertake an analysis of the factors affecting the Future of JIT as a Tool
for Inventory Management in India's Automobile Industry, after identifying variables based on a
review of the relevant literature and expert opinion. This strategy was developed utilising the
statistical method known as Factor Analysis. When characterising variability among visible,
correlated variables, factor analysis is used to characterise the variability in terms of a potentially
lower number of unseen variables, also known as factors. Using factor analysis, certain components
are identified, which are then used to develop a model for enhancing the quality of inventory
management in the Indian vehicle sector, which can be used by forward-thinking businesses.
SPSS, which stands for Statistical Package for the Social Sciences, is a software programme
used by a variety of academics to analyse and understand complicated statistical data.

Table 9 KMO Results (Created by the author according to SPSS software)

The results of the Kaiser-Meyer-Olkin and Bartletts tests are shown in Table 9. According
to the Kaiser-Meyer-Olkin test, the sampling appropriateness was 0.621, indicating a good outcome.
Testing using KMO (Kaiser-Meyer-Olkin) determined that sampling was satisfactory and suitable
for factorial analysis. The relevance value of the Bartletts Test of Sphericity was 0.000, suggesting
that factor reduction is achievable.
The table below summarises the Principal Component Analysis results. Due to our
adherence to the criterion for selecting components with Eigenvalues greater than one, we were able
to maintain five factors as the study’s final result. Table 10 displays the Total Variance-Principal
Component Analysis.

39
Table 10 Total Variance- Principal Component Analysis (Created by the author according to SPSS
software)
Total Variance Explained
Compon Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared
ent Loadings Loadings
Total % of Cumulativ Total % of Cumulativ Total % of Cumulativ
Variance e% Variance e% Variance e%
1 2.428 17.346 17.346 2.428 17.346 17.346 1.644 11.745 11.745
2 1.555 11.107 28.453 1.555 11.107 28.453 1.641 11.719 23.464
3 1.331 9.505 37.958 1.331 9.505 37.958 1.617 11.552 35.016
4 1.198 8.555 46.513 1.198 8.555 46.513 1.528 10.916 45.932
5 1.057 7.548 54.061 1.057 7.548 54.061 1.138 8.130 54.061
6 .998 7.128 61.190
7 .945 6.749 67.939
8 .802 5.728 73.666
9 .774 5.528 79.195
10 .719 5.134 84.328
11 .658 4.701 89.029
12 .565 4.032 93.061
13 .513 3.666 96.727
14 .458 3.273 100.000
Extraction Method: Principal Component Analysis.

The graph illustrates the scree plot of the results, which highlights the components with
Eigen values greater than one. In conclusion, Principal Component Analysis reduced the thirteen
survey variables to five significant ones. Figure 7 depicts a scree plot.

Figure 7 Scree Plot (Created by the author according to SPSS software)

40
 The scree plot is used to estimate the number of retained factors for a factor analysis (FA)
or principal component analysis (PCA) (PCA). Using a Scree plot, a Scree test finds statistically
significant components or features. (Mishra et al., 2017). The research scree plot emphasises
components with Eigen values higher than 1. Thus, the author may infer that Principal Component
Analysis whittled down the thirteen survey variables to five essential ones.

Table 11 Component Matrix- Principal Component Analysis (Created by the author according to
SPSS software)
Component
1 2 3 4 5
Staff Participation .490 .409
Employee attitude and .650
Awareness
Training and education .418 -.425
Delivery in short time -.431 .407
Reduction in Paper work -.515
Supply of good quality .404 .510
Materials
Raw material inventory .498
Finished goods inventory .409 .569 .429
Product Quality .614
Waste reduction Protocols -.528 .439
Reduction of Defects .533
Productivity .577 .409
Process Capacity .435 -.555
Space Utilization .454 .411
Extraction Method: Principal Component Analysis.

Therefore, if the source parameters are quite large, PCA may be a viable option for
accelerating the method. Table 11 illustrates Component Matrix-Principal Component Analysis
using SPSS software.
Rotated Component Matrix

The Rotated Component Matrix shows factor-item Pearson correlations. Loadings, or factor
loadings, show a component's qualities. Table 12 shows the rotated matrix. The unaltered zero
vector causes rotations around the origin (origins coordinates). Rotation matrices are used in
geometry, physics, and computer graphics to describe rotations algebraically.

41
 Table 12 Rotated Component Matrix (Created by the author according to SPSS software)
Component

1 2 3 4 5
Staff Participation .750
Employee attitude and Awareness -.719
Training and education .451
Delivery in short time .641
Reduction in Paper work .590 .435
Supply of good quality Materials .546
Raw material inventory .445
Finished goods inventory .853
Product Quality .653
Waste reduction Protocols -.668
Reduction of Defects .603
Productivity .691
Process Capacity .777
Space Utilization .617

The rotated component matrix shown in the table takes into account values greater than 0.4.
Five components are selected, and their interactions need to be built using the rotational component
matrix.
Component 1

Only variables with correlation coefficients larger than 0.4% were assessed in the study.
Each variable in the rotated component matrix has a value that is positive. Thus, three factors were
chosen for further examination. The chosen elements are Productivity (0.691), Process Capacity
(0.777), and Space Utilization (0.617). Figure 8 depicts the values of the first component's factors,
as seen in the bar chart.

0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.691 0.777 0.617
Productivity Process Capacity Space Utilization

Figure 8 Component 1- Factor Loadings (Created by author).

42
 • Component 1 refers to a company's manufacturing capacity. These factors are tied closely
to the company's production capacity.
• JIT manufacturing lowers cycle, flow, and throughput times. This productivity gain
improves product delivery, saving costs and enhancing customer happiness. A JIT system
allows organisations adjust fast to changing situations. In addition to obsolescence,
corporations must pay for storage, shipping, handling, insurance, and warehouse leases. In
addition, challenges with inventory management could result in bottlenecks and shortages
of crucial components.
• JIT assists service providers in their efforts to plan and manage capacity more accurately.
This decreases overall capital and operational expenses while maintaining service quality. It
is adaptive, trustworthy, quick, and cost-effective in terms of capacity planning.
Component 2

Each component of the research is assigned a positive value by the component matrix. The
author of the thesis picks components with a correlation coefficient larger than 0.40 from the
component matrix. Staff Participation (0.750), Delivery in a Short Time (0.641), and Reduction in
Paperwork (0.590) are the identified variables (Figure 9).

3.5

2.5

1.5

0.5

0
Staff Participation Delivery in Short Time Reduction in Paper work

Figure 9 Component 2- Factor Loadings (Created by author).

• Component 2 refers to the Supplier aspects in the supply of raw materials in a timely manner.
The selected aspects are crucial to the future of JIT as an inventory management solution.

43
• In JIT businesses, all workers work in tandem to overcome obstacles and produce high-quality
results, and they are trusted with a great deal of independence and responsibility to do so. JIT
requires a certain frame of mind, active participation from employees, and development.
• The velocity of order delivery is an increasingly scrutinised aspect of supply chain management,
particularly as consumer expectations for same-day and next-day delivery and other features
continue to rise. Just-In-Time (JIT) delivery is an inventory management strategy that expedites
order fulfilment, with particular applications in raw materials orders and production.
• Since JIT relies heavily on IT, it has significantly reduced the need for paper-based procedures.
Component 3

Only variables with correlations larger than 0.4% were used for the study. Except for "Waste
Reduction Protocols, (-0.668)" all of the columns in the flipped component matrix have positive
values. Two further factors were considered and selected: Product quality (0.653) and Reduction of
Defects (0.603). Figure 10 is a bar chart showing the values of the third component's factors.

0.8

0.6

0.4

0.2

0
Product Quality Waste Reduction Protocols Reduction of Defects
-0.2

-0.4

-0.6

-0.8

Figure 10 Component 3- Factor Loadings (Created by author).

• Component 3 pertains to Quality and waste reduction considerations. This set of factors has a
significant impact on the future of JIT.
• Product quality refers to how well a product meets client requirements, fulfils its intended
function, and adheres to industry norms. Businesses evaluate the quality of a product based on
a variety of characteristics, including whether it solves a problem, functions well, or meets the
needs of consumers. JIT-Driven Inventory, quality, and production management are all

44
 combined to improve quality. Prioritizing everyone's responsibility for quality, it then
emphasises quality control techniques.
• JIT inventory management ensures that inventory arrives precisely when it is needed for
production or to meet customer demand, and no earlier. The objective is to reduce waste while
increasing operational efficiency.
• Manufacturing defects result from production interruptions and order fulfilment delays. JIT
maintains the flow of production, eliminates waste, and reduces the failure rate. Quality
development partnership with suppliers and clients strengthens business relationships.
Component 4

For the study, only variables with correlations greater than 0.4% were utilised. Each column
of the inverted component matrix has a positive value. Supply of Good Quality Materials (0.546),
Raw Material Inventory (0.445), and Finished Goods Inventory (0.853) are the factors considered
and selected. Figure 11 is a bar chart displaying the factor values for the fourth component.

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
Supply of Good Quality Materials Raw Material Inventory Finished Goods Inventory

Figure 11 Component 4- Factor Loadings (Created by author).

• Stock Control is the subject of the fourth component. The selected factors have been
demonstrated to influence the future of JIT as an inventory management tool.
• A consistent supply of good quality materials as needed is essential for the success of JIT.
• A more efficient supply chain could reduce production costs, which could be passed on to
consumers. This increases the organization's market share and competitiveness. JIT liberates
company resources by decreasing inventory levels. Using JIT, a retailer can add retail space to
an existing warehouse without expanding.

45
• The inventory of finished goods represents the total amount of stock that can be sold to
customers. The finished products of a seller may become the buyer's raw materials. Finished
Goods Inventory is the final stage of inventories that have completed the production process and
consists of goods that have attained their final form and are ready for sale to end consumers.
Component 5

Only variables with correlations larger than 0.4% were included for the investigation. Each
column of the rotated component matrix has a value that is positive, except Employee Attitude and
Awareness (-0.719). The second element identified is Training and Education (0.451). Figure 12 is
a bar chart depicting the fifth component factor values.

0.6

0.4

0.2

0
Employee attitude and awareness Training and Education
-0.2

-0.4

-0.6

-0.8

Figure 12 Component 5- Factor Loadings (Created by author).

• The fifth component relates to the organisational factors. The selected factors have been found
to influence the future of JIT as an inventory management strategy.
• JIT's success depends on employee mindset. When people know themselves and the company,
they're emotionally in control and create a joyous, stress-free workplace. Collaboration helps a
firm realise its goals and vision. Self-aware employees may analyse events, feelings, and co-
workers’ perspectives objectively. Companies should promote self-awareness to create a healthy
workplace.
• JIT's future and success are significantly determined by the training provided to its staff.
Training may result in the acquisition of new information, attitudes, or behaviours. Human
capital theory prioritises training when businesses foresee a rise in employee output sufficient
to pay training expenses such as an instructor, materials, and downtime.
46
 The factorial research set out to identify the key drivers of change for JIT as an inventory
management approach in India's car sectors. Table 13 displays the results of the analysis.

Table 13 Overall Components and Factors (Created by author)

Components Including Factors Correlation Coefficient Value
Component 1- Manufacturing Productivity 0.691
Capacity of the Company Process capacity 0.777
Space utilization 0.617
Component 2- Supplier Staff Participation 0.750
Aspects Delivery in Short Time 0.641
Reduction in Paperwork 0.590
Component 3- Quality and Product quality 0.653
Waste Reduction aspects Waste reduction Protocols -0.668
Reduction of Defects 0.603
Component 4- Stock Control Supply of Good Quality 0.546
Materials
Raw Material Inventory 0.445
Finished Goods Inventory 0.853
Component 5- Organizational Employee Attitude and -0.719
Factors Awareness
Training and Education 0.451

The following is a brief description of the findings:

• The sample's appropriateness received a score of 0.621 on the Kaiser-Meyer-Olkin (KMO) test,
indicating a positive outcome. The evaluation determined that sampling was sufficient for
factorial analysis.
• PCA is a dimensionality-reduction technique that turns a large set of variables into a smaller set
that retains the majority of the information. (Mishra et al., 2017) Since the author used
Eigenvalues greater than one, PCA retained five variables.
• The scree plot determines the number of retained factors for a factor analysis (FA) or principal
component analysis (PCA) (PCA). A scree test identifies statistically significant components or
features using a scree plot. (Mishra et al., 2017). The scree plot in the research highlights
components with Eigen values greater than 1. Thus, the author may conclude that Principal
Component Analysis reduced the thirteen survey variables to only five critical ones.
• The rotated component matrix is used to establish the relationship between two selected
components. Thirteen variables were chosen, and five rotated matrix components with
correlation values in excess of 0.40 were identified. The identified elements are:

47
5.2. Model for Improving the Quality of Inventory Management in the Automobile Industry
of India

Factor analysis reduces variables and identifies the study's most important parts. Factorial
analysis helped identify the five most important factors and draw conclusions about them. This is
one way to improve inventory management in India's automobile industry.
𝑌 = 0.17𝐶1 + 0.11𝐶2 + 0.09𝐶3 + ⋯ … … . +0.45𝐶0 (5.1)

where:

Y= Enhanced Quality of Inventory Management

C1= Manufacturing Capacity of Company

C2= Supplier Aspects

C3= Quality and Waste Reduction Aspects

C0= Factors that do not have a lot of variation

The following figure 14 depicts a possible model for enhancing the quality of inventory
management in the Indian automobile sector by incorporating the five components gathered from
the factor analysis.

Considering the
SUCCESS OF
Factors affecting
Utilize Advancements JIT IN
JIT Future of JIT as an Tackle the Drawbacks
in JIT AUTOMOBILE
Inventory INDUSTRY OF
Management Tool INDIA

•Zero Failures •Manufacturing •Takes time •New TDS (Total

capacity of the •No spare raw Development
•Zero Inventory System)
company material for
•Zero lead time •Supplier Aspects unexpected •New TMS (Total
•Zero Delay •Quality and Waste orders Marketing
Reduction Aspects •Highly dependant System)
•Stock Control on Suppliers •Scientific SQC
•Supply Shock (Scientific
•Organizational
Statistical Quality
Factors
Control)

Figure 13 Model for Enhancing the Quality of Inventory Management in the Indian Automobile
Sector (Created by author).

48
• Manufacturing Capacity of the Company: In JIT production, cycle, flow, and throughput
times are all decreased. As a result of this productivity boost, product delivery has improved,
resulting in lower costs and happier customers. With a JIT system in place, businesses can
quickly adapt to new circumstances. Storage, shipping, handling, insurance, and warehouse
rents are all costs that businesses have to bear in addition to the natural cost of obsolescence.
Additionally, bottlenecks and shortages of critical components might arise from problems with
inventory management. JIT aids automakers in their attempts to more precisely plan and manage
capacity. Reduced capital and operating costs without a drop-in service quality is achieved in
this way. In terms of capacity planning, it is flexible, reliable, rapid, and economical.
• Supplier Aspects- Workers in JIT companies are entrusted with a significant lot of autonomy
and responsibility, and they are expected to work together to solve challenges and generate high-
quality products. Developing a JIT mindset, culture, and workforce is essential. As customer
demands for services like same-day and next-day delivery increase, the speed with which orders
are fulfilled is becoming an ever more important metric in supply chain management. JIT
delivery is a method of inventory management used to speed up the fulfilment of orders, often
for raw materials purchases and manufacturing. Due of JIT's reliance on IT, paper-based
processes have been greatly diminished.
• Quality and Waste Reduction Aspects- Product quality is how well a product satisfies
customer needs, performs its intended purpose, and follows industry standards. Businesses
assess a product's quality by whether it solves a problem, operates effectively, or fits customer
demands. JIT-Driven Managing inventory, quality, and manufacturing improves quality. It
emphasises quality control and everyone's quality responsibilities. JIT inventory management
guarantees merchandise arrives just when required for production or consumer demand. To
decrease waste and boost efficiency. Interruptions and order delays cause manufacturing
failures. JIT keeps production flowing, eliminates waste, and decreases failure. Quality
development partnerships enhance business ties.
• Stock Control- JIT requires a constant supply of high-quality materials. A more efficient supply
chain might cut manufacturing costs, which would benefit consumers. This boosts market share
and competition. JIT reduces firm inventory levels. Using JIT, a shop may boost store space
without expanding. The completed products inventory reflects entire customer stock. Sellers'
completed goods might become buyers' raw materials. Finished Goods Inventory is the ultimate
step of completed manufacturing and consists of finished, ready-to-sell commodities.
• Organizational Factors- Employee mentality determines JIT's success. People who know
themselves and the organisation produce a joyful, stress-free environment. Collaboration helps

49
 a company achieve its aims. Self-aware employees can objectively evaluate events, emotions,
and co-workers’ viewpoints. Healthy workplaces foster self-awareness. Staff training
determines JIT's future and success. Training may change knowledge, attitudes, and behaviours.
Human capital theory prioritises training when employers expect an increase in employee
production to pay for an instructor, materials, and downtime.
According to the suggested model for boosting the quality of inventory management in the
Indian automobile industry, the aforementioned difficulties should be corrected in part. Certain
adjustments may have a positive impact on the quality of inventory management and thus the future
of JIT in the Indian automobile industry, while a whole repair is unachievable.

5.3. Novelty of the Research

Research Novelty refers to one or more novel aspects of the research, such as novel
methodology or novel observations that provide new information to the study. Science may profit
from an innovative idea.
The author starts with a literature review before analysing and evaluating the factors
affecting the future of JIT as a strategy for inventory management in India's automobile industries.
In surveys, specialists in the automobile industry respond to questions about a variety of literature-
uncovered topics. To find the most influential elements influencing the future of JIT as a strategy
for inventory management in India's automobile sectors, descriptive statistics and factor analysis
were used to identify the factors and perform the study.

Second
First Novel Novel Factor Analysis has been
Approach Approach Conducted and gathered 5
Identification of factors Components out of 13
influencing the future of JIT subfactors.
as a strategy for inventory • Manufacturing Capacity of the Company
management in India's • Supplier aspects
• Stock Control
automobile sectors through a • Quality and Waste reduction Aspects
thorough literature review • Organizational Factors

Construction of a Model for enhancing the

Questionnaire for gathering quality of inventory
opinions from the experts management in the Indian
automobile industry has
been proposed.

Figure 14 Novelty of the Research (Created by author).

50
 The first novelty was to identify the characteristics that influence the future of JIT as a
technique for inventory management in the Indian automobile industry. Using the literature study,
the author identified certain characteristics, and using these elements, a self-structured questionnaire
was designed to collect the views of automotive industry specialists (automobile engineers and
quality engineers).
Second, a novel technique was used to determine the factors influencing the future of JIT as
a strategy for inventory management in India's automobile sectors. As a consequence of factor
analysis, the following five important components were identified: Manufacturing Capacity of the
company, Supplier Aspects, Quality and Waste Reduction Aspects, Stock Control and
Organizational Factors and by using these components a model for enhancing the quality of
inventory management in the automobile industries in India has been proposed.
Conclusion

This chapter analyses the study's outcomes in light of the survey data and factor analysis.
According to the research objectives, the discussion is divided into three major motifs: an analysis
of the factors affecting the future of JIT as an inventory management tool for automobile industries
in India, a model for enhancing inventory management strategies in automobile industries, and the
novelty of the research.
• Factor analysis has been conducted and 5 components gathered from 13 factors.
• The gathered components are Manufacturing capacity of the company, Supplier Aspects,
Stock Control, Quality and Waste Reduction Aspects, Organizational Factors.
• Based on the components a model for enhancing the inventory management strategies in
Indian automobile industries has been proposed.
• The research novelty has been explained in detail.

51
 CONCLUSION AND RECOMMENDATIONS

In this chapter, a conclusion is drawn based on the results of the review. This chapter also
discusses the difficulties that were experienced while carrying out this review as well as the
implications for more study. In this chapter, recommendations for best practises for automobile
industries in India for effective inventory management of the future are offered as well.
1. By answering the first research question of the study: What are the variables that will influence
the future of just-in-time inventory management in the automobile industry in India?
• The author conducted a thorough literature review based on the articles downloaded from
Google Scholar.
• By utilizing the literature review the author was able to identify certain factors that affect
the future of JIT as a tool for inventory management in automobile industry of India. The
following main factors were identified:
➢ Staff Involvement and Commitment
➢ Supplier Relationships
➢ Level of Inventories
➢ Quality and Waste Reduction Aspects
➢ Production Aspects
• Thirteen subfactors were also identified under these main factors. By using these factors, the
author constructed a questionnaire for gathering expert opinion by conducting a survey on
Google Forms.
• The experts chosen were automobile engineers as well as quality engineers and Six Sigma
experts.
2. By answering the second research question of the research: What can be done for improving the
quality of inventory management in the automobile industry of India?
• The author conducted a descriptive as well as a factorial analysis based on the survey results.
• The purpose of conducting factor analysis was to gather specific components from the
survey results and create a model based on the components.
• The components gathered from the factor analysis are as follows:
➢ Manufacturing capacity of the company
➢ Supplier Aspects
➢ Stock Control
➢ Quality and Waste Reduction Aspects
➢ Organizational factors

52
 • Manufacturing capacity of the company explains that with a JIT system, businesses can
quickly adapt to new circumstances. In JIT production, cycle, flow, and throughput times
are all decreased. As a result of this productivity boost, product delivery has improved. JIT
aids automakers in their attempts to more precisely plan and manage capacity. Reduced
capital and operating costs without a drop-in service quality is achieved in this way.
• The supplier aspects can be described as follows. Developing a JIT mindset, culture, and
workforce is essential. JIT delivery is a method of inventory management used to speed up
the fulfilment of orders. Due of JIT's reliance on IT, paper-based processes have been greatly
diminished. Same-day and next-day delivery is becoming an increasingly important metric
in supply chain management.
• Product quality is how well a product satisfies customer needs and performs its intended
purpose. JIT inventory management guarantees merchandise arrives just when required for
production or consumer demand. To decrease waste and boost efficiency, JIT keeps
production flowing, eliminates waste, and decreases failure.
• The component stock control can be explained as by using JIT, a shop may boost store space
without expanding. The completed products inventory reflects entire customer stock. Sellers'
completed goods might become buyers' raw materials. A more efficient supply chain might
cut manufacturing costs, which would benefit consumers. This boosts market share and
competition.
• Organizational Factors can be explained as people who know themselves and the
organisation produce a joyful, stress-free environment. Self-aware employees can
objectively evaluate events, emotions, and co-workers’ viewpoints. Human capital theory
prioritises training when employers expect an increase in employee production to pay for
instructor, materials, and downtime.
• The above-mentioned components were used for proposing a model for enhancing the
quality of inventory management in the automobile industries in India.

Limitations of the Study

Few limitations exist in this study. First, there is variation in the inventory management
strategies implemented by automobile industries throughout the research included in this analysis.
This limits the generalizability of the results in the context of other automobile companies that utilise
JIT procedures except those, if any, addressed in this research. This research is being conducted in

53
India, and a small sample size is being used for the survey. The examination of data is limited to
Factor Analysis. This further restricts the review's generalizability.

Recommendations

• In light of the limits of this evaluation, further research must be conducted as primary research
in order to investigate the elements that impact the future of JIT as a strategy for inventory
management in automotive sectors outside of India.
• AHP and other data analysis approaches may be used to rank the factors. The number of firms
and sample sizes may be increased. In addition to surveys, telephone interviews may be used to
collect primary data.
• This study proposes a methodology that may be adopted by automobile manufacturers to
improve their inventory management tactics. Just-In-Time operations are extensively applied in
the manufacturing industry with the primary goals of controlling the timeliness of production
and delivery while preserving or enhancing product quality.
• JIT forces manufacturers to complete activities in very short intervals and has a significant
influence on production schedule. Internet of Things (IoT) technology may be included into the
manufacturing process as a result of the development of sensors and wireless network
technologies.
• IoT may connect physical items in the manufacturing process, such as materials, work-in-
progress (WIP), completed products, labour, machinery, and tools, and record their status and
performance in order to facilitate production scheduling.

54
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 APPENDICES

Appendix 1: Assessment of the factors affecting future of just in time as a tool for inventory
management on automobile industry in India.

I am Joel Karleth George, a master's student at the University of West Scotland.

This questionnaire is a component of a bigger investigation I am undertaking for my
master's research. I'm looking for information that will help me identify and evaluate the
elements influencing the future of just-in-time as an inventory management technology in
India's automobile industry.
By providing consent, participants have the option to select whether or not to participate in
the survey. They may offer their assent on the consent form if they are willing to participate.
They may discontinue the survey if they are unwilling.
Your participation in the survey will consist of responding to a variety of questions provided
by the author using Google forms, an online survey platform, and will take around 10
minutes. Following the session, your participation in this research project will complete.
In order to avoid ethical or security issues, the following survey questions will not require
any personal information or information about your employment or the technology used by
your organization. However, the goal of this survey is to get the thoughts and opinions of
industry members as a whole. In addition, you will be guaranteed total privacy, and your
identity will not be included in the survey transcript.
As the survey will be conducted using Google Forms, only the survey's creator will have
access to the forms, assuring the utmost degree of anonymity. You are not required to
answer all questions, and you may leave the survey at any time.
Any personally identifiable information, such as the name, will be omitted from the analysis
and will be kept secret.
The following are the contact information for the interviewer and the supervisor:
Interviewer- Joel Karleth George, Email- B00486063@studentmail.uws.ac.uk
Supervisor- Julie Mccaffery, Email - julie.mccaffery@uws.ac.uk
In addition, the data will be used only for my scientific study, and your comments will be
kept strictly secret.

Thank you for your help by participating in this survey. Your responses help me for
progressing with my research.
*Required
59
 Consent for Participation *
Mark only one oval.

In light of the aforementioned, I hereby grant my permission to participate in this

survey.
As a result of the above, I hereby withdraw my consent to take part in this survey.

Staff Involvement and Commitment

1. Do you think that the employees are actively participating in the implementation process of
JIT? *
Mark only one oval.
Never
Rarely
Occasionally
Often
Always
2. Do you believe that the company actively supports the participation of employees in the
organizational affairs? *

Mark only one oval.

Definitely would
Probably Would
Neutral
Probably would not
Definitely Would not
3. Are you aware of the advantages of JIT? *
Mark only one oval.
Not at all aware
Slightly aware
Moderately aware
Somewhat aware
Extremely aware

60
4. Do you agree to the statement that the implementation JIT will benefit the company? *
Mark only one oval.
Strongly disagree
Disagree
Neutral
Agree
Strongly agree

5. On a linear scale, how do you rate the training provided by the company regarding the
implementation of JIT? *

Mark only one oval.

1 2 3 4 5
Poor 0 0 0 0 0 Excellent
Supplier Relationships

6. Do you think that the time taken for delivery influence the process of JIT? *
Mark only one oval.
Not at all influential
Slightly Influential
Somewhat Influential
Very Influential
Extremely Influential
7. What is your opinion regarding the importance of paperwork reduction in success of JIT? *
Mark only one oval.
Not at all important
Slightly important
Neutral
Moderately Important
Extremely Important
8. Do you agree that the consistent supply of quality materials impact JIT? *

61
Mark only one oval.
Strongly agree
Agree
Neutral
Disagree
Strongly Disagree
Level of Inventories

9. Do you believe that the reduction in the raw material inventory can benefit the JIT? *
Mark only one oval.
A great deal
A lot
A moderate amount
A little
None at all
10. Does the reduction of finished goods inventories has any impact on JIT? *
Mark only one oval.
Definitely Would
Probably Would
Neutral
Probably Would not
Definitely Would not

11. What effect does the storage of inventories make on JIT? *

Mark only one oval.
Very Negative
Negative
Neutral
Positive
Very Positive

Quality and Waste Reduction Aspects

12. Does the improvements in product quality affect the JIT manufacturing? *
62
Mark only one oval.
Definitely would
Probably would
Neutral
Probably would not
Definitely would not

13. What is your opinion regarding the waste reduction protocols and their impact on JIT? *
Mark only one oval.
Very undesirable
Undesirable
Neutral
Desirable
Very Desirable

14. Does the reduction in errors of production impact the JIT process? *
Mark only one oval.
A great deal
Alot
A moderate amount
Alittle
None at all

Production aspects

15. Does the improvement in productivity of the company can enhance the process of JIT? *

Mark only one oval.

Definitely Would
Probably would
Neutral
Probably Would not
Definitely would not

63
16. What is the impact of the improvement of process capacity of the company in the
implementation of JIT? *
Mark only one oval.
Very Positive
Positive
Neutral
Negative
Very Negative
17. The reduction in space utilization for production and stocking increases the chances of JIT. Do
you agree with this statement? *

Mark only one oval.

Definitely Would
Probably would
Neutral
Probably would not
Definitely would not

64
Appendix 2: Ethical Approval

65