Jsir 63 (8) 655-662 PDF
Jsir 63 (8) 655-662 PDF
Jsir 63 (8) 655-662 PDF
This paper examines the implementation of Just-in-Time (JIT) based managerial philosophy in the Indian industries.
Specifically, JIT elements, JIT benefits and reasons for slow implementation of JIT in Indian industries are investigated
through a survey. The results of this survey support the notion that JIT has potential to increase the organizational perform-
ance of Indian industries. However, to achieve this potential, Indian industry must be willing to modify their procedures and
operations. Much has been written regarding the positive effect of JIT on performance of production system. But, the nega-
tive impact of JIT on workers and production system are not clear. The disadvantages of JIT production system are therefore
highlighted here.
high rating, which indicates that JIT implementation plementation of an Indian tractor assembly industry.
in India is not an impossible task. The study has also Records of company have indicated that significant
stressed on focusing more on poke-yoke, reduced set benefits are achieved by improvement in quality and
up time, kanban system, and quality of incoming ma- productivity, and reduction in inventory, material
terial. movement, space, manpower, work-in-process, and
Chandra and Kodali 4 have developed a multi- lead-time. The key steps in JIT implementation were
attribute decision model using analytical hierarchy extensive training of employees on pull concepts;
process (AHP) for justification of JIT manufacturing identification of key performance parameters; new
system in Indian industries. The selection of impor- layout based on U-shaped cells; standardization of
tant JIT attributes and sub-attributes was determined. operations; a maintenance plan for each machine,
All JIT attributes and sub-attributed were then used in housekeeping, visual control, and multi-skill training.
AHP to achieve the related benefits. The results of Kaujalgi and Lingara9 have provided an overview
study have quantified the JIT benefits in descending of changes implemented in a spring manufacturing
order: increased profit margin, improved competitive department. These changes were made as part of a
position, quality improvement and reduction in inven- continuing implementation of a JIT manufacturing
tory. system. This study has shown how manufacturing
Deshmukh5 has attempted review on the state of order and control systems change in order to create a
the art of JIT and its possible ramifications in the pur- system which can react immediately according to
chasing and manufacturing system. It has been change in customers needs.
pointed out that JIT from a systems perspective re- Mahadvan10 has conducted survey of 43 Indian in-
quires that suppliers and manufacturing functions dustries. The findings of this study have suggested
must be in concert with design, planning, and control. that TQM and vendor development efforts must pre-
JIT must be viewed as a binding force coupling all the cede the launch of major JIT programs. It has been
activities, from incoming raw material to the finished found that automobile industry in India has made sig-
goods. nificant improvements in areas such as, multi-skilling
Garg et al.6 have explored the specific cultural of work force, total preventive maintenance (TPM)
changes required in JIT environment and also re- and JIT purchasing. These factors constitute the basic
ported their presence in Indian industries. They have requirements for successful JIT implementation in
stated that trust, locality, responsibility, development, any firm. Supplier development, Employee involve-
motivation, authority, long-term relationship, and re- ment, and Top management commitment are promi-
spect for human beings mark work culture required in nently listed as critical success factors. Training, task
JIT environment. It is critical for industries to make force formation, re-layout, and pilot study are indi-
conscious and deliberate efforts to change the work cated as among the first five steps taken in JIT im-
culture for successful implementation of JIT. These plementation.
changes require top management commitment and Singhvi11 has presented the experience of imple-
worker participation in decision making, and massive menting the JIT in an Indian automobile company.
education and training to the people concerned. The study has found the employee involvement as a
critical element for implementing the JIT, while large
Garg et al.7 have conducted a survey of 31 Indian
investments are not found essential. At last, it is con-
industries to analyze the importance of the attributes
cluded that implementation of JIT is not so difficult in
pertaining to JIT purchasing and supplier evaluation
India. Its implementation could be a great opportunity
criteria. The surveyed companies have given great
for Indian industries due to its wide range of benefits.
importance to some attributes such as, high quality,
mutual trust, cooperated relationship, on time deliver-
ies supplier evaluation, stable production schedule, Survey on JIT Practices
reliable network of suppliers, reduced delivery time, JIT imposes a different set of requirements on the
long-term contract, and continuous improvement. The typical work culture. Work culture reflects the way of
study has also indicated the scope of JIT as 70 on life of people, their norms and values regarding work
scale (0-100), which is predicted better compared to in an organizational setting where technology and
earlier studies. social cultural forces jointly, determine managerial
Garg et al.8 have conducted a case study in JIT im- style and practices. In other words, work culture plays
KUMAR et al.: JIT PRACTICES IN INDIAN CONTEXT 657
(i) To identify those JIT elements, which are highly Type of layout Production: 8; Product: 07;
Mixed: 16; Cellular: 3
difficult to implement in Indian industry.
Ability to meet daily pro- Very Good :5; Good: 16, Fair:
(ii) To search out most accountable reasons for its
duction schedule 9; Poor: 3; No response:1
slow implementation in India.
Scope of JIT Very Good: 7; Good: 13, Fair:
(iii) To highlight the most expected JIT benefits. 10; Little: 4
Awareness about JIT Yes: 29; No: 3; No response: 2
Methodology
This study includes four phases: (a) Questionnaire Thirteen of the 34 respondents mentioned good scope
preparation, (b) Data collection; (c) Data Analysis, of JIT in India.
and (d) Final conclusions. First phase of this study
Analysis
was to review the literature related to JIT from several
The t-test is conducted at 5 per cent level of sig-
books, journal articles, and relevant websites. Based
nificance to analyze JIT issues such as difficulty in
on this review, various dimensions and related ele-
implementing the JIT elements, expected benefits of
ments of this concept were identified. At last, a ques-
JIT implementation, and reasons for slow implemen-
tionnaire was prepared. The questions were on the
tation of JIT in Indian industries. The following hy-
companys profile, JIT benefits, JIT implementation
potheses were formulated for t-test.
and related problems. The questionnaire was mailed
to 115 manufacturing firms located around Delhi, (i) H0: No element of JIT is difficult to implement
Faridabad and Gurgoan because of logistic con- in Indian industry. (The null hypothesis (H0) will
straints. Initially, response was poor. To get more re- be rejected if JIT element subjected under test is
sponse, reminders were sent to managers by tele- not difficult to implement).
phonic calls while some mangers were personally in- (ii) H0: All JIT benefits listed in Table 2 could not
terviewed. In all, 37 responses were completed. Out be achieved through JIT implementation. (The
of 37 responses, 3 were excluded from study due to null hypothesis (H0) will be rejected if surveyed
incomplete and unreliable responses. At last, 34 re- companies have achieved any expected JIT
sponses were found suitable for study, making re- benefits listed in Table2).
sponse rate 29 per cent. The general profile of partici- (iii) H0: All causes listed in Table 3, are not respon-
pated companies is given in Table 1. sible for slow implementation of JIT in Indian
Among 34 companies surveyed, eight were auto- industries. (The null hypothesis (H0) will be re-
mobiles, six heavy machines, fivecleaners, oil filters, jected if surveyed companies face the similar
steering gears, air filter housing, gear and axle assem- problem as listed in Table 3).
bly for cars, electric motors, refrigerators, fans, etc. The results of t-test are given in Tables 2 - 4. The
Inability to meet the daily schedule was the common study indicates the JIT index as 3.18 on scale 0-5, im-
problem of participating industries. Time losses due plying that perfect implementation of JIT is slightly
to machine failure and power failure, work stoppage difficult in Indian industries. It has been found that
due to bad quality were major reasons for missing JIT elements such as, Buffer stock removal, Error pre-
schedule. Most of respondents were aware about JIT.
658 J SCI IND RES VOL 63 AUGUST 2004
vention (poke-yoke), Frequent and reliable delivery, cation, Employee empowerment, Group incentive
Kanban system, Multifunctional worker, Total pre- scheme, High QC visibility, Job enlargement, Line
ventive maintenance, Set up time reduction, Short stop strategy, Long-term contracts/employment, Long-
Lead time, Small lot size, U-cells/layout improve- term QC commitment, QC authority to worker,QC
ment, Zero defect, and Zero deviation schedule are training to workers supplier, Quality certification of
difficult to implement while other elements such as, supplier, Quality circles, Regular quality auditing,
Continual quality improvement, Effective communi- Selfcorrection of defects, Standard containers,
KUMAR et al.: JIT PRACTICES IN INDIAN CONTEXT 659
Sl No. Reasons for slow implementation of High Low No Mean tcalculated Results
JIT in Indian industry Res- score Let H0 =3.00
ponse
5 4 3 2 1 0
1 High cost of implementation 14 7 4 4 2 3 3.529 0.202 H0 rejected, Ha =3.50 accepted
2 Informal and casual quality auditing 7 6 16 3 1 1 3.353 -1.053 H0 rejected, Ha =3.50 accepted
12 Lack of support from R & D department 14 9 8 3 0 0 4.000 0.00 H0 rejected, Ha =4.00 accepted
16 Lack of understanding about JIT tech- 9 15 5 4 0 1 3.765 1.703 H0 rejected, Ha =3.50 accepted
niques
Standardization, Process control, Statistical quality size production requires increase in efficiency
control, Strong buyer-supplier relationship, Team and reliability of production system to unrealis-
work, Total quality control, Vendor rating, Schedul- tic level because multiple sourcing becomes dif-
ing flexibility, and 100 per cent quality inspection are ficult under JIT13.
easy to implement in Indian industries. Similarly, JIT (iii) JIT programs are not one-time efforts that can be
benefits such as Improved equipment utilization, Im- quickly implemented. Such programs need con-
proved quality control, Improved worker efficiency, tinuous assessment to achieve a sustained im-
Increased inventory turn, Increased flexibility, In- provement in quality. They also require continu-
creased productivity, Increased profit margin, In- ous close cooperation and communication at all
creased team work, Low scrap rate, Reduced invento- levels of industries14.
ries, Reduced product cost, Reduced production lead (iv) The stringent demands of the JIT production
time, Reduced purchase lot size, Reduced the fre- system require maintaining communication be-
quency of stoppage and Reduced work in process are tween the supplier and industry at the highest
expected benefits. The results of survey indicate that levels because buffer stocks have been elimi-
High cost of implementation, Informal and casual nated or reduced dramatically. The timing is just
quality auditing, Lack of support from suppliers, Lack as important as quality and quantity. There is lit-
of training, Lack of understanding about JIT tech- tle or no margin or error15.
niques, Poor and inadequate maintenance, Shortage of (v) Extending managerial power is a salient feature
multifunctional workers, Traditional methods of qual- of JIT But, it has negative implication for work-
ity control are major reasons for slow implementation ers. Workers are in fact subject to highly visible
of JIT in Indian industries. In addition, participated forms of managerial power, control, and proc-
industries have also indicated that they do not have esses of constant surveillance and monitoring of
full support from top management and R&D depart- output and performance. In addition, JIT entails
ment. Even with these problems, Indian industries are excessive re-training costs and demand unrealis-
expecting significant benefits from JIT implementa- tic employee commitment levels16.
tion. Statistical tests confirm that scope of JIT in India (vi) The JIT information system, kanban requires
is good. Therefore, attention must be focused on criti- longer time to transmit any new information
cal elements of JIT to reap maximum benefits. through the system as compared to centralized
information processing system17.
Disadvantages of JIT Implementation
For more than a decade, JIT has been touted as Conclusions and Recommendations
prime way to keep costs down and assembly lines The results of this survey support the notion that
running smoothly. However, some researchers criti- JIT has the potential to increase the operational effi-
cized that JIT methods have some considerable nega- ciency, quality and organizational effectiveness of
tive implications at various levels. Indian industries Indian industries while its some basic elements are
should be examined these issues prior to the imple- slightly difficult to implement in existing production
mentation of JIT These are: system of industries. To gain the benefits of JIT, In-
dian industries must be willing to modify their proce-
(i) Implementation of JIT does not automatically dures and operations. The training of employees in
increase profit because benefits derived from JIT order to create an organizational culture, establish-
adoption may be offset by its many direct and ment of new procedures for dealing with suppliers,
indirect costs. In addition the industries cannot analysis of operations to identify the areas of stan-
expect favorable results just by implementing dardization, simplification and automation and re-
the JIT because it demands appropriate fit be- engineering of operational processes and procedures
tween new manufacturing practices and organ- are some important issues, which should be examined
izational design, structure, and processes. Its prior to the implementation of JIT. If these issues are
success also depends critically on executive not adequately addressed the JIT effort is bound to
(management) commitment, employee empow- encounter humans and suppliers related problems.
erment, and an open organizational culture12. The potential benefits of JIT to Indian organizations
(ii) JIT demands the delivery of high quality are not in doubt. However the art of designing the
parts/raw material in small lots. The small lot 3right strategy for implementing the JIT in Indian in-
662 J SCI IND RES VOL 63 AUGUST 2004
dustries is debatable. Therefore, issues related to these 9 Kaujalgi V B & Lingaraj B P, Implementation of JIT sys-
concerns are worthy of future research. tems: A case study, Ind Eng J, 26 (1997) 8-11.
10 Mahadvan B, Are Indian companies ready for Just-in-Time?,
Manage Rev, (July September, 1997) 85-92.
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*Author for correspondence
e-mail: vikasymca@yahoo.com