Just-in-time : an evaluation of its implementation by an international manufacturing company based in Malta

Abstract

The constant drive for excellence in view of increased competition is leading companies to adopt innovative systems and techniques. This enables companies to be more effective and efficient in their operations whilst being prompt in responding to customer needs. The implementation of the JIT philosophy entails the elimination of all forms of waste, a demand-pull manufacturing process, total employee involvement, an emphasis on perfect quality and a system of continuous improvement. Collectively, these basic elements accompanied by proper adaptation render a successful JIT implementation. The objective of this dissertation is to evaluate the experience of a selected local manufacturing company which implements the JIT philosophy. Initially, the perceptions of the respondents relating to JIT principles are examined. In addition, the dissertation stipulates financial and non-financial benefits attained by the case organisation and attempts to identify the costs incurred as a result of the JIT system. It is noted that such costs may not always be possible to quantify. This objective was achieved through a series of interviews with the CFO, the Purchasing Manager and the Production Manager, as well as detailed financial calculations. The study ascertains that the implementation of the JIT system was beneficial and successful for the studied company. It is revealed that although it might seem challenging in the local scenario, the JIT philosophy resulted in financial savings as well as unquantifiable benefits. Moreover, it is disclosed that the adoption of the JIT philosophy at the right time has further contributed to its success.