Table 2: correlation between JIT implementation and overall performance.
Table 3 : relation in the three variables to JIT implementation
Just in Time is a managerial philosophy whose aim is elimination of sources of manufacturing waste through production of the right parts, in the right place and in the right time. The JIT inventory, also known as Lean production or stockless production need to improve profitability and return on investments through reduction in inventory levels, product quality improvement, reduction in production and delivery times as well as curbing any other costs like those associates with set up and breakdown of machines (Tubular Steel Inc).
The initial implementation of this philosophy was first applied by Toyota Automobile Company in the 1950’s. By 1970’s many other Japanese automobile companies had adopted the lean production systems to increase efficiency and reduce costs. In JIT philosophy, the most important component is supplier partnership building that involves a critical decision making process in order to choose the right ones. In today’s dynamic and competitive markets, firms are devising strategies that are in consistent to their environmental demands for efficiency, effectiveness as well as customer responsiveness. The focus of JIT is reduction in costs and excellence attainment through continuous improvements in the business process through redefining the structural and procedural activities performed in an organization. The focus is therefore to review existing literature on JIT and then analyze a research study on JIT in steel manufacturing industry (Manna).