4th International Conference on Emerging Trends in Engineering & Technology, October 25 th -27th, 2013
Geeta Institute of Management & Technology, Kurukshetra, INDIA-136131
Just In Time Approach of Waste Reduction in
Manufacturing Sector: A Critical Literature
Review
Parveen kumar1, Dr. P.C. Tewari2, Amit Gupta3
1
National Institute of Technology/ Department of Mechanical Engineering, Kurukshetra, India
Email: rundla.88@rediffmail.com
2
National Institute of Technology/ Department of Mechanical Engineering, Kurukshetra, India
Email: pctewari1@rediffmail.com
3
National Institute of Technology/ Department of Mechanical Engineering, Kurukshetra, India
Email: eramit81@yahoo.co.in
Abstract - In today’s scenario of globalization, every
industry is continuously striving for innovative and effective
management techniques which can enhance their
productivity by reducing the different types of the wastes
significantly. Key wastes in an industry are work in process
inventory, long set up time, large space requirement etc. Lot
of industries are reducing these wastes significantly by
implementing the various elements of Just In Time (JIT).
JIT along with some other management techniques is a
much more effective tool for reducing the non value added
activities. This paper shows the classification of various
elements of JIT. It also provides a framework for the
elements of SQC and JIT which are to be first implemented.
the proper use of SQC. Hence SQC will provide a base for
successful implementation of JIT as shown in the Framework
given below:
Keywords - : Just In Time (JIT), SCM, SQC, TQM.
I INTRODUCTION
Just in time is a Japanese production management philosophy.
JIT means to deliver right quality items or services to the
customer at right time, in right quantity, at right place and at
lowest possible cost. JIT is also known by names of lean
production or stockless production. The JIT philosophy has it’s
root after World War-II when Japanese were trying to compete
with United States of America’s manufacturing system. Taichi
Ohno was the founder of this philosophy. He developed this
philosophy in TOYOTA MOTOR COMPANY to compete with
the U.S.A. automobile companies. JIT philosophy was started
for automobile sector but now a days it has much wide scope
ranging from manufacturing industry, production industry to
service industry. JIT philosophy affects every aspect of an
organization not only manufacturing but also human resource
management. JIT implementation requires the commitment of
not everyone in the organization but also from suppliers and
often of the customers. JIT reduces wastes at every stage of the
supply chain. JIT philosophy assumes that people are capable
and willing to take more responsibility.
Today, many companies are approaching quality in a different
manner.
In broad sense, a company can combine
complimentary quality-related programs to achieve much
greater improvements than individual program could produce
by themselves. Going into JIT was simplified by the data
available through SQC. We are able to target problems and
establish quality before moving into JIT system. Getting the
quality right before introducing JIT is the key to a successful
JIT program. JIT removes the buffer of inventory accrued by
traditional stocking methods, it is vital to know about the true
needs of production. This information can only be obtained by
Figure 1. Framework of JIT Implementation Plan
In this paper Section 2 represents the critical literature review
and Section 3 outlines conclusions and future scope.
II. Just In Time Approach of Waste Reduction in Manufacturing
Sector: A Critical Literature Review
Ludo F. Gelders et al [1985] discussed the performance of
production-inventory control systems such as Material
Planning, Just-In-Time production and Optimized Production
Technology under the capacity constraints environment. It was
assumed that the reader is familiar with the mechanisms of
production-inventory systems. Emphasis was on the potential of
these systems to deal with capacity constraints (e.g. bottleneck
facilities) and on their strengths and weaknesses. It was also
shown what the main differences and similarities are and how
these production-inventory control systems could complement
4th International Conference on Emerging Trends in Engineering & Technology, October 25 th -27th, 2013
Geeta Institute of Management & Technology, Kurukshetra, INDIA-136131
each other in many situations rather than being mutually
exclusive.
HC Pegler [1990] considered the example of many of the most
successful Japanese manufacturing companies, at that time there
was a desire in the UK to implement many aspects of the justin-time (JIT) approach to manufacturing systems. In this paper a
rule-based approach to capture and representation of knowledge
related to the major elements of JIT production was developed
for use as a guide to the successful implementation of such a
system. The rule base was also useful as a teaching aid and store
of expertise which can be updated as knowledge of the subject
increases.
Ganesan Chengalvarayan [1991] showed that there was much
interest in American industries in the use of just-in-time (JIT)
manufacturing to reduce the work-in-progress (WIP) inventory
and to increase the quality of the end product. However, while it
promised significant results, it might be difficult to justify that
management discard an operating MRP system in favor of a
philosophy. This paper described a study conducted in a
manufacturing environment for a possible JIT implementation
in the production floor and also described the simulation
analysis of the operation.
Symonds and Bill [1993] explained how JIT concept can be
transformed from manufacturing sector to health care
organizations. This article was focused on how the JIT concept
can be applied in hospitals and what factors are essential for this
program. Provided a brief history of JIT and presented the
underlying principles of the philosophy. Examined how JIT can
be modified from the production industry to the healthcare
industry. This transition was illustrated using the highly
successful program at Vanderbilt University Medical Center
(VUMC).Outlined specific implementation details of the JIT
program at VUMC. This analysis emphasized that JIT is not a
set of techniques to be copied-but rather a philosophy to be
incorporated into daily business practices
E.JEWKES [1994] performed a fundamental microeconomic
analysis of a firm which had made an investment into just-intime (JIT) manufacturing principles. The firm was assumed to
possess some monopoly power in the purchasing of its raw
materials and had sold its output in a competitive market. The
firm’s investment process could take place over one or more
time periods and it was assumed that, properly implemented,
JIT brings about a unit production cost reduction.
Mark Huson et al [1995] revealed that Just-In-Time
manufacturing had been subjected to numerous studies both
empirical and methodological. This work was attempted to
measure the impact of JIT on accounting measures of
performance. Most technologies and investments were justified
on the basis of their impact on financial and accounting
measures which were not easily quantified.
Ron McLachlin [1997] discussed that numerous benefits had
been claimed for firms that implement just-in-time (JIT)
approaches to manufacturing. This paper considered whether
each of a number of management initiatives is necessary for the
implementation of just-in-time manufacturing.
Jan Holmstrom [1998] suggested that standard business
system e.g. SAP R/3 may be employed instead of identification
and introduction of newer problem specific system solutions for
new business requirements. This alternative could ground the
situation which might be cost efficient for a situation when
supply chain sophistication and integration demands from
customers are increasing.
A. Gunasekran [1999] revealed that one of the major issues
identified from the review of JIT purchasing literature is the
integration of JIT purchasing function with other functional
areas such as design, production, marketing, distribution and
accounting. The researcher represented a list of techniques to
overcome some of the major problems of JIT purchasing. The
researcher stated that JIT purchasing along with the Total
Quality Management in many industries has been successful in
reducing inventory and increasing the overall effectiveness of
purchasing function and hence the productivity.
Kristy o. Cua [2001] showed that research on Total Quality
Management (TQM), Just-in-Time (JIT) and Total Productive
Maintenance (TPM) generally investigates the implementation
and impact of these manufacturing programs alone. But various
researchers presented the arguments regarding the value of
understanding the joint implementation and effect of
manufacturing programs. Cuo investigated the practices of the
three programs simultaneously. He found that there is evidence
supporting the compatibility of the practices in these programs
and that manufacturing performance is associated with the level
of implementation of both socially- and technically-oriented
practices of the three programs
Jonah Tyan [2003] discussed the retailer-supplier partnership
(RSP) in a supply chain using VMI. He found that VMI not
only has the ability to reduce costs, but also to improve service
levels and create business opportunities for both parties in the
supply chain. The recommended VMI implementation approach
provides an effective guideline to shorten the process and to
maximize the VMI’s benefits.
Neil, R. [2004] described that how a community health care
network was using a stockless program with a single vendor
since 1992.This article concluded the benefits of stockless
program in terms of reduction in full time employees, paperless
order and number of persons required buying different products
from different vendors. By using the JIT or stockless system the
organization had significantly reduced the number of full time
employees.
Haifeng et al [2005] studied the optimization policy of
purchase price and the profit under VMI and established a
supply chain mode of VMI for a salable product which is based
on deterministic demand, having initial stock and stock-out
cost. In his analysis, VMI is found to increase profits of buyer
in the short-term motivation .But VMI will reduce profits of
supplier under the matching condition and in short term
motivation; VMI will increase the purchase price to compensate
the transfer cost of the supplier.
Anthony Manos et al [2006] revealed various types of waste in
hospitals. The paper represented various building blocks of
Lean in the health care. The researcher gave the idea of staring
the JIT concept in health care by initiating with 5’S.The
researcher revealed that managerial processes of lean system
were entirely as applicable to auto industry. Manos stated that
the value adding for patients in healthcare is different from
customer in manufacturing because the main goal of the
healthcare is the prevention or cure.
Li Bo et al [2007] described that Work-In-Process (WIP)
management was a big problem for a manufacturing
organization. Primarily, Work in Process control approach,
Production Control Strategy and the factors affecting normal
producing of a discrete manufacturing enterprise were analyzed.
Then, based on the production characteristics and present
situation of the manufacturing enterprise in China, a task
management model was proposed to minimize the WIP. This
model was designed to describe and forecast the dynamic
4th International Conference on Emerging Trends in Engineering & Technology, October 25 th -27th, 2013
Geeta Institute of Management & Technology, Kurukshetra, INDIA-136131
interaction and mutual effect between WIP and Just-In-Time
(JIT).
Joseph G. Szmerekovsky [2008] developed one manufacturer
and one retailer model to study the effect on manufacturers and
retailers of attaching Radio Frequency Identification (RFID)
tags at the item level in a VMI system. First he studied the
demand processes between an RFID system which uses
continuous review and a non-RFID system which uses periodic
review when shelf-space is limited and then determines the
optimal inventories policies in a centralized system and
established conditions under which the RFID system is
preferable to the system without RFID. Finally, he studied the
decentralized system and show how the sharing of tag price can
be used to coordinate the supply chain and how it can be
exploited in manufacturer and retailer dominated system.
Wen Yan et al [2010] represented that logistics management of
hospital material is very important to ensure the normal
operation and reduce operating costs . In this paper the various
steps in logistics re engineering of hospital are described. It also
described numerous success factors in implementing the
logistics model of hospital material based on JIT. To make JIT
manufacturing be effective purchasing patterns must also be
aligned with this. So Just-In-Time purchasing is another
essential component of Just-In-Time system.
Xiaosheng Yu et al [2011] studied that under the inferences
of the economic globalization and market globalization, some
industries in China such as automobile manufacturing were
facing with severe competition and experienced profound
changes. JIT was found suitable for the manufacturing
enterprise development needs in the current market conditions.
JIT (just in time) production is the process that the products and
components with the required level of quality are produced at
the given time and place in order to eliminate unprofitable
labour and inventory waste and achieve maximum productivity.
Cemal Zehira et al [2012] discussed that TQM and
Performance Relationship was a popular discussion in the
literature, Quality Performance and TQM relationship was
supported with various studies but the findings about innovative
performance were inconsistent. However, most scholars stress
on the importance of TQM activities on performance outcomes.
The main goal of the study was to investigate whether TQM
activities affect quality and/or innovative performance and also
defining the effective components on these performance types.
Dewan Md Zahurul Islama et al [2013] represented the
introduction to the principles and methods used in logistics and
supply chain management starting with discussion on
fundamentals and then explanation of the appropriate terms.
Afterwards logistics and freight services policy and practice
were regarded for EU policy for the sector which had greatly
influenced the development of logistics chains and services.
2. The planning and continuous monitoring of a JIT system can
reduce organization total cost through more efficient supply
chain management.
3. Firstly an industry should implement “most important and
least difficult to implement” elements.
4. Although VMI is also an effective management technique but
in Indian context, JIT is a much more effective technique.
5. JIT is not just a management technique but is a philosophy
which can be efficiently applied not only in manufacturing
sector but also in service sectors like Hotels, Hospitals, Banks
and Financial Institutions.
Scope for future- In Indian context, complete implementation
of JIT is not viable. But an organization can employ some
combined elements of Just in time, Statistical Quality Control
and Total Quality Management to achieve their short term and
long term objectives considering
the nature of
work
undertaken by the organization concerned.
REFERENCES
[1] L. F. Gelders and L. N. Van Wassenkove, “Capacity Planning in
[2]
[3]
[4]
[5]
[6]
[7]
[8]
[9]
[10]
[11]
[12]
[13]
[14]
III. CONCLUSIONS
[15]
1. This critical review reveals the results of combined
management techniques are more effective rather than benefits
obtained using a single technique.
MRP,JIT AND OPT: A CRITIQUE”, Journal of Operation
Management, vol. 12, pp 201-209, 1985.
HC Pegler and M. Power, “Rule-based approach to Just In Time
manufacturing”, vol. 3, 1990.
G. Chengalvarayan and Sandra C. Parker, “Simulation Analysis of
JIT feasibility in a manufacturing environment”, vol. 21, pp 303306, 1991.
Symonds and Bill, “ Just-in-time inventory management”,1993.
R. Dennision et al., “Just-in-Time: Implications for the
hospital industry, Journal of Hospital Marketing, vol 8 , pp.131141, 1993.
E. Jewkes and M. Power “A Microeconomic Analysis of
Investment in JIT Manufacturing”, International Journal of
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M. Huson and D. Nanda “The Impact of JIT Manufacturing on
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Performance”, Journal of Operation Management, vol. 19, pp
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Anthony Manos et al , “ Making a Health Care Lean”, 2006.
Li Bo, Li Hui, Chen Ying “WIP management and control based
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management system based on JIT in the discrete manufacturing
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Cemal Zehira et al., “Total Quality Management practices effects
on quality performance and innovative performance”, 2012.
Dewan Md Zahurul Islama “Logistics and Supply Chain
Management”, 2013.
A. Gupta, P.C.Tewari and R.K. Garg, “Development Of Decision
Support System For Optimal Selection Of Inventory Policy For
Indian Automotive Industry”, Ph.D. Thesis, NIT, Kurukshetra.
Textbook on Just In Time Manufacture by C.A. Voss.