Journal of Asia Business Studies

An evaluation of just in time (JIT) implementation on manufacturing performance in Indian industry

Gurinder Singh Inderpreet Singh Ahuja
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To cite this document:
Gurinder Singh Inderpreet Singh Ahuja , (2014),"An evaluation of just in time (JIT) implementation on manufacturing
performance in Indian industry", Journal of Asia Business Studies, Vol. 8 Iss 3 pp. 278 - 294
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Pamela Danese, Pietro Romano, Thomas Bortolotti, (2012),"JIT production, JIT supply and performance: investigating the
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Zhi#Xiang Chen, Kim Hua Tan, (2011),"The perceived impact of JIT implementation on operations performance: Evidence
from Chinese firms", Journal of Advances in Management Research, Vol. 8 Iss 2 pp. 213-235
Zhixiang Chen, Kim Hua Tan, (2013),"The impact of organization ownership structure on JIT implementation and production
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 An evaluation of just in time (JIT)
implementation on manufacturing
performance in Indian industry
Gurinder Singh and Inderpreet Singh Ahuja
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Gurinder Singh is based
at Government
Polytechnic College,
Mohali, Khunimajara,
Punjab, India.
Inderpreet Singh Ahuja is
a Professor based at
University College of
Engineering, Punjabi
University, Patiala,
Punjab, India.
Received 22 September 2013
Revised 19 February 2014
Accepted 2 June 2014
PAGE 278 JOURNAL OF ASIA BUSINESS STUDIES
Abstract
Purpose – The purpose of this paper is to create awareness of contributions made by just-in-time
manufacturing (JIT) practice towards building performance measures in Indian manufacturing industry.
Implications of JIT implementation issues in Indian manufacturing industry have been critically
evaluated in this paper.
Design/methodology/approach – While conducting this study, survey of reasonable number of
manufacturing organisations have been made so as to ascertain contributions made by JIT initiatives in
the Indian manufacturing industries for achieving major performance measures. The correlations
between various JIT implementation dimensions and performance parameters have been worked out
by employing various statistical tools and bringing out significant factors contributing effectively
towards achieving manufacturing performance measures.
Findings – The study divulges that attitude of management, participation of workers, relationship of
organisation with suppliers and customers, adoption of latest manufacturing methods and successful
adaptation of effective JIT initiatives can significantly contribute towards enhancing performance
measures in the organisation. The study also reveals that the holistic JIT manufacturing methods
outscore the traditional manufacturing practices towards improving the manufacturing performance.
The study highlights that detailed JIT implementation over a reasonable period can greatly contribute
towards achievement in performance of organisation.
Originality/value – The present study analyses the impact of JIT manufacturing method on
performance of organisation and highlights the need for aligning organisational efforts in establishing
manufacturing methods for attaining improvements in performance of manufacturing organisations. The
paper highlighted the status of JIT manufacturing initiatives in the Indian context and the preparedness
of Indian manufacturing industry to meet the challenges imposed by the Western world by employing
aggressive JIT manufacturing strategies.
Keywords Competitive advantage, India, Performance measures, Manufacturing industries,
Just-in-time manufacturing (JIT)
Paper type Research paper
1. Introduction
In the present highly dynamic and continuously changing environment, the global
competition among organisations has lead to higher demands on most manufacturing
organisations (Miyake and Enkawa, 1999). Global competition among manufacturing
organisations has heralded a tremendous change in approach of management, techniques
of product and process, expectations of customer, attitude of supplier as well as
competitive behaviour (Ahuja et al., 2006). The challenges thrown up by this competition
has forced the manufacturing organisations worldwide to nurture high reliability, quality,
availability and maintainability in the manufacturing systems by implementation of various
strategic and proactive market-driven strategies to remain competitive in a highly dynamic
environment (Ahuja and Khamba, 2008). Thus, to remain at the top, an organisation needs
to change strategies, improve product quality and reduce cost of production at a faster rate
than its competitors (Singh and Ahuja, 2012).
VOL. 8 NO. 3, 2014, pp. 278-294, © Emerald Group Publishing Limited, ISSN 1558-7894 DOI 10.1108/JABS-09-2013-0051
 Manufacturing methods have usually been considered as an operating expense to be
minimised, and not treated an investment in increasing reliability of process in many
organisations (Patterson et al., 1996). The inadequacies of the manufacturing practices in
the past have adversely affected the organisational competitiveness by reducing
throughput and reliability of production facilities (Ahuja and Khamba, 2008). This has
resulted in fast decline in quality of products and overall production, lowering of equipment
availability due to excessive system downtime, increasing cost of product and increasing
inventory, thereby leading to unreliable delivery performance. As organisations in today’s
highly challenging scenario have working to reduce costs and enhance quality and
responsiveness, the reduction in inventory and excess capacity have come out with serious
weaknesses in the traditional manufacturing programmes (Lawrence, 1999).
To meet all the challenges, organisations try to introduce different manufacturing
techniques (Singh and Ahuja, 2012). Efforts have been made by management of
organisations to reduce the manufacturing costs and to enhance the product quality.
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Various manufacturing techniques have been employed by organisations to remain

competitive. The last quarter of the 20th century witnessed the emergence of three major
programmatic operations improvement concepts that have drastically changed the way
manufacturing firms manage their operations. These were just-in-time (JIT) production
systems, International Standards Organization (ISO) 9000 certifications and total quality
management (TQM) (Dreyfus et al., 2004).
Adoption of world-class, lean and integrated manufacturing strategies such as JIT
manufacturing leads to improvement of production performance (Fullerton and McWatters,
2002). Chauhan and Singh (2012) have emphasised that “elimination of waste” is the most
important parameter of lean manufacturing, followed by “just in time deliveries”. JIT
manufacturing is a systems approach to developing and operating a manufacturing system
(Alawode and Ojo, 2008; González-R. et al., 2013). It is not a technique but a management
philosophy, and it refers to meet the demand of customers well in time with enhanced
quality. JIT philosophy is based on the concept of delivering raw materials when needed
and producing products when there is a need (Singh and Ahuja, 2012). The main focus is
on minimising all kind of inventories like raw material, work-in-process (WIP) and finished
goods inventory with a view to cutting costs of inventory and also helping to expose other
more serious inefficiencies (poor maintenance, poor quality, inspection, backlogs, etc.) in
the manufacturing cycle (Vuppalapati et al., 1995). The fundamental objective of JIT is to
eliminate all waste from the entire manufacturing cycle through continuous improvement
(Frazier et al., 1988). It reduces the complexity of detailed planning of material, the need for
shop floor tracking, raw material as well as WIP inventories, qualities and transactions
associated with shop floor and purchasing systems (Manoj, 2011). However, benefits of JIT
do not just happen but before a manufacturing organisation reaps the benefits of JIT, it
must accept JIT as an organisational philosophy.

2. Literature review
Holding of high inventory has been commonly considered as poor management (Boute
et al., 2004). JIT has been depicted as an inventory control technique and the Japanese
auto industry has recognised JIT as the developer of inventory management philosophy
(Aghazadeh, 2003). It is a systematic approach which reduces inventory by supplying
material at production and distribution points only when needed (Lee and Wellan, 1993). As
the name implies, JIT is to produce goods JIT for use or sale (Adeyemi, 2010). Indeed, JIT
is a method of production that has been developed to evolve a defect-free process (Cheng
and Podolsky, 1996). Horngren and Foster (1987) listed four cardinal objectives of JIT, as
shown in Figure 1.
JIT is an approach to manufacturing based on waste reduction and rapid response to
customer demand (Mullarkey et al., 1995). It is not like traditional forms of production,
where fabrication, sub-assembly or assembly takes place as and when material is

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 279

 Figure 1 Objectives of JIT
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availability. JIT is considered to be a “pull” system of manufacturing where production

takes place only when there are requirements from downstream operations and specific
demands from external customers (Mullarkey et al., 1995). The core of the JIT philosophy
is continuous improvement in process through the elimination of all kinds of waste
(Chakravorty and Atwater, 1995). According to Bicheno (1987), JIT is “to produce
instantaneously with perfect quality and minimum waste”. In its broader sense, JIT is an
approach of achieving perfection in a manufacturing industry based on the continuous
elimination of waste. Thus, core elements of JIT focus on streamlining production process
and eliminating waste in materials as well as labour through considerable reductions in WIP
inventory, standardisation of work processes and elimination of all forms of
non-value-added activities, like rework, end-of-line and in-line quality inspection and
unnecessary material handling (Mullarkey et al., 1995). JIT production practices positively
affect both efficiency and delivery (Danese et al., 2012). JIT is an innovative, non-traditional
approach to manufacturing that is complementary to TQM, total productive maintenance
(TPM), involvement of employee, management commitment, continuous improvement in
performance and other world-class manufacturing strategies. JIT is a system or one can
say culture that takes advantage of the skills and abilities of all individuals in an
organisation (Patterson et al., 1996).
JIT has garnered a great response from the manufacturing organisations worldwide since
its evolution, and a very large number of manufacturing organisations are adopting JIT
manufacturing, especially in developed and developing nations. JIT is a critical initiative to
meet demand of customer on price, quality and lead times. JIT addresses entire production
system over the entire life cycle and builds a concrete, shop floor-based mechanism to
prevent various manufacturing losses and wastes (Ahuja and Khamba, 2008). Major aims
of JIT are to eliminate all accidents, wastes, defects and breakdowns at the workplace. JIT
is the foundation for world class manufacturing, as it facilitates the effective implementation
of world-class lean manufacturing practices.
Very few research papers on JIT implementation in Indian context are available for
reference, at present. Lohar (2011) has conducted the survey of JIT implementation in
Indian industries and found that the JIT has the potential to increase the operational
efficiency, quality and organisational effectiveness of Indian industries, while some basic
elements of JIT have been slightly difficult to implement in existing production system of
industries. Study depicts that to gain the benefits of JIT, Indian industries should be willing
to modify their procedure for dealing with supplier, analysis of operations to identify the
areas of standardisation, simplification and automation and reengineering of operational
processes and procedures are some important issues, which should be examined prior to

PAGE 280 JOURNAL OF ASIA BUSINESS STUDIES VOL. 8 NO. 3 2014

 implementation of JIT. It has been concluded that if these issues are not properly taken
care of, the JIT efforts are sure to come across buyers-and supplier-related problems.
Singh and Garg (2011) have explained about JIT movement, its concept, elements of JIT,
motivational factors for JIT and benefits of JIT. Manoj (2011) has conducted his research in
agro manufacturing units in Kerala (KAMCO) and found that philosophies like JIT have
become imperative for survival and growth of any manufacturing company, rather than just
an option. Road map for adoption of JIT in KAMCO has been explained in study.
Pisuchpen (2012) has investigated the effect of varying number of kanban cards, mean
inter-arrival time of demand and locations of the bottlenecks on the performance integration
of JIT flexible manufacturing, assembly and disassembly systems using MANOVA. The
study emphasised the interactions between the variables and their effects on system
performance for improving performance processes. The research highlighted that
minimised WIP can be obtained by higher percentage average fill rate, lower WIP, small
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average part cycles times and increase in kanban cards, while simultaneously retaining full
customer satisfaction.
Danese et al. (2012) in their research work developed six hypotheses on the relationships
between JIT production, JIT supply, efficiency and delivery performance. Authors
concluded that JIT production practices have positively affected both efficiency and
delivery. JIT supply practices positively moderate the relationship between JIT production
and delivery, while there is no significant moderating effect when considering the impact on
efficiency.
Chen and Tan (2013) have shown that organisation ownership not only impacts the
implementation of JIT and operations performance but also impacts the relationship
between JIT implementation and operations performance:
 Moreover, the results revealed that, for firms operating in China, the implementation
frequency of JIT practices varies with organisation ownerships.
 The foreign and joint venture firms (JVFs) were found to have a higher level of JIT
implementation and can also achieve better performance from JIT implementation than
state-owned and private-owned firms.
 Also, JIT implementation was found to have a significantly positive relationship with
operations performance in all types of ownership firms.
Malik et al. (2011) have conducted their research on JIT-based quality management in
Indian manufacturing industries, and after employing various statistical techniques in their
survey, it has been depicted that the degree of difficulty in implementation of JIT-based
quality management was found to be 3.18 on a scale of zero-five, implying that
implementation of JIT-based quality management in totality is reasonably difficult in Indian
industries.
Kumar and Grewal (2007) have discussed the critical elements of the JIT in the context of
Indian service industries. The study has been analysed by sending a questionnaire to
about 60 service industries in Chandigarh, Delhi, Punjab, Haryana and Himachal Pardesh.
On the basis of 30 responses received, authors identified critical elements of JIT. Attempt
was made to examine the degree of importance and degree of difficulties, of these critical
elements in Indian service industries. The results revealed that JIT played an important role
in service industries. Authors suggested that elements that were less difficult but more
important should be implemented in the initial stage.
Mahadevan (1997) discussed the readiness of Indian industries in implementation of JIT.
The survey was conducted by sending a questionnaire that identified 14 critical factors and
participating organisations were asked about importance of these factors. It has been
found that automobile industry in India made significant changes in many areas like JIT
purchasing, implementation of TPM and multi-skill labour. These factors contribute towards

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 281

 successful implementation of JIT in manufacturing industry. Management’s commitment
and participation of workers are the critical success factors.

3. Methodology and hypothesis

The study has been conducted in the large-scale medium and on manufacturing industries
of India that have successfully implemented JIT or are in the various stages of
implementing JIT to study the JIT implementation issues and achievements made as a
result of strategic JIT implementation. The manufacturing organisations having ⬎ 400
employees and having turnover ⬎Rs60 crores have been included in the present study. In
this study, a reasonable number of manufacturing organisations (60 organisations) have
been surveyed extensively to assure contributions made by JIT implementation initiatives in
the Indian industries towards realisation of crux competencies. The approach of study has
been directed towards justification of JIT implementation for its support to competitive
manufacturing in Indian industries. The methodology employed in the study is shown in
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Figure 2.
To ensure the contributions made by JIT manufacturing initiatives towards realisation of
manufacturing performances, a detailed “JIT questionnaire” has been designed for
accessing the JIT implementation capabilities of the Indian manufacturing industry and
recognition of manufacturing performances. The JIT questionnaire has been designed
through extensive literature review of studies by Benson (1986), Lee and Seah (2007),
Golhar and Stamm (1991), Clark and Mia (1993), Ramarapu et al. (1995), Spencer and
Guide (1995), Yasin and Wafa (1996), McLachlin (1997), Wafa and Yasin (1998), Claycomb
et al. (1999), Canel et al. (2000) and Kumar (2010) and validated through peer review from
academicians, consultants, JIT councillors and practitioners (JIT co-coordinators) from the
industry.
In the present study, the questionnaire survey technique has been used for gathering
information on the status of JIT implementation issues and the recognition of various
manufacturing performances in the Indian manufacturing industry. For carrying out the
survey effectively, the JIT questionnaire has been designed by conducting extensive
literature review, and it has been validated through peer review from academicians,
consultants and JIT practitioners from the industry. To ensure the relevance and
effectiveness of the questions, the questionnaire has been pre-tested on an exemplary
sample of industry. The suggestions received from the peers, consultants, managers and
senior executives from the industries and academicians have been added to make the
questionnaire more accordant to the purpose and bring out major outcomes as a result of
strategic JIT implementation. The JIT questionnaire delivers the purpose of divulging the
exploits of Indian organisation with JIT practices and highlights the major contributions of

Figure 2 Methodology utilised for study

PAGE 282 JOURNAL OF ASIA BUSINESS STUDIES VOL. 8 NO. 3 2014

 JIT in recognising the overall organisation’s goals and objectives. Figure 3 shows the steps
undertaken in finalisation of the JIT questionnaire.
A 4-point Likert scale has been used in this study to evaluate the extent of deployment of
various JIT implementation success factors and enhancements in manufacturing
performance parameters as a result of JIT implementation initiatives. The 4-point Likert
scale has been used in the present study because it forces someone to agree or disagree.
In this scale, there is no neutral or middle ground. It’s a forced choice that demands much
more from respondents. The questionnaire was sent to 300 industries and 64 responses
were received, out of which 60 responses are useable, and on the basis of these 60
responses further study has been carried out.
Figure 4 shows the model for assessing the inter-relationships between critical JIT
implementation dimensions and manufacturing performance measures.
In the present study, the association between success factors of JIT implementation and
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manufacturing performance measures have also been assessed to evolve the recognition
of the contributions of the various JIT implementation success factors towards achievement
of specific manufacturing performance improvements, Further, the outcome of
enhancements in manufacturing performance with respect to “time frame of JIT
implementation” has been accessed to confirm the fact that JIT implementation is not an
overnight process, and it requires quite a reasonable period that varies between three and
five years to realise the true potential of JIT. The study has revealed improvements in
manufacturing performance over time that extends up to five years and beyond. In this
research, various statistical methods and tools has been employed for extracting out
important factors and elements contributing towards realisation of improvement in

Figure 3 Questionnaire finalisation procedure

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 283

 Figure 4 Inter-relationships between JIT implementation dimensions and manufacturing
performance measures
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manufacturing performance. For the analysis, the various statistical tools like Cronbach’s
alpha, Pearson correlation coefficient, multiple regression analysis, canonical correlation
and two-tailed t-test have been employed to find out the contributions of JIT implementation
initiatives towards achievement of manufacturing performance improvements in the Indian
manufacturing organisations. For the present study, formulation of hypotheses is shown
below:

Manufacturing performance improvements-related hypothesis

H1. A significant overall association exists between JIT success factors and JIT
manufacturing performance parameters.

H2. There exists significant association between strategic JIT manufacturing

performance parameters with major individual JIT implementation success factors.

Hypotheses related to manufacturing performance improvements

H3. Strategic enhancement in manufacturing performance depends on the gain in

experience by manufacturing organisations with respect to time.

PAGE 284 JOURNAL OF ASIA BUSINESS STUDIES VOL. 8 NO. 3 2014

 4. Contributions of JIT in attaining manufacturing performance enhancement
Indian manufacturing industries survey has acknowledged the fact that many organisations
in the country have implemented or are going to implement JIT. The target respondents for
the JIT questionnaire have been the industries that have made serious activities in the field
of JIT and accomplished significant achievements by adoption of strategic JIT initiatives.
First screening of manufacturing organisations across the country was done, and a
database of industrials was created so that JIT questionnaire should be mailed to these
industries. The JIT questionnaires were than mailed to the selected industries and were
afterwards contacted through postal mail, telephonically and e-mail and the context of the
present research work were explained, its significance and to clarify any queries/doubts to
facilitate absolute and clear-cut responses to the JIT questionnaires. In total, 60 responses
regarding the JIT questionnaire have been received from the major Indian manufacturing
organisations at different stages of JIT implementation. Most of the replies of the “JIT
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Questionnaire” belonged to the top management and executives that included several Vice
Presidents, General Managers (GM), Head – Quality Assurance, Head of Operations,
Head – Process Engineering, Quality Coordinators, Head – Improvement Management,
Chief Managers, Manages Manufacturing, GM – TPM, TPM Head, GM – Technical, Quality
Managers, etc.
The responses received from various organisations have been compiled and critically
analysed to access the performance of various JIT-related issues of Indian manufacturing
industry. Cronbach’s alpha has been applied to various JIT implementation success factors
and JIT implementation performance measures to evaluate the reliability of the input and
output data collected through the JIT questionnaire. The values of Cronbach’s alpha for
various input and output parameters has been depicted in Table I.
The values of Cronbach’s alpha for all the input and output parameters are in excess of
0.65. This indicates the significantly high reliability of data for various input and output
parameters.
The validation of all the input variables (A1, A2, A3, A4, A5 and A6) and output variables
(B1, B2, B3, B4, B5, B6, B7, B8, B9 and B10) has been done by discriminant validity
analysis. It is clear from the Table II that all the respective within covariance values of
variances are more than the between variables covariance values. Therefore, input and
output variables are further validated.
On the basis of the responses received from the organisations, evaluation of association of
various JIT success factors with key manufacturing performance parameters has been
made. Table III shows the Pearson correlations between various JIT implementation
success factors and manufacturing performance parameters. The Pearson correlations
have been calculated to assure the significant factors contributing to success of the JIT
implementation programme in the organisations. Only those pairs are considered as having
a significant association which have Pearson correlation ⱖ 40 per cent and statistically
significant at one per cent level of significance.
To know about critical success factors for attaining results through holistic JIT
implementation, the significant correlations have been obtained as a result of Pearson’s
correlation and covariance, and these are validated through “Multiple Regression
Analysis”, as shown in Table IV. The notations shown in the table include ␤ ⫽ regression
coefficient (beta coefficient), R ⫽ multiple correlation coefficient. The significant factors (␤)

Table I Cronbach’s alpha values for input and output data

Cronbach’s alpha
A1 A2 A3 A4 A5 A6 A7 B1 B2 B3 B4 B5 B6 B7 B8 B9 B10

0.851 0.918 0.845 0.856 0.926 0.831 0.809 0.870 0.816 0.828 0.840 0.839 0.812 0.782 0.817 0.860 0.912

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 285

 Table II Covariance values for input and output parameters
Covariance A1 A2 A3 A4 A5 A6 B1 B2 B3 B4 B5 B6 B7 B8 B9 B10

A1 0.016 0.011 0.012 0.011 0.009 0.009 0.012 0.013 0.015 0.015 0.013 0.016 0.015 0.012 0.013 0.016
A2 0.011 0.014 0.012 0.011 0.012 0.012 0.013 0.013 0.012 0.013 0.015 0.016 0.014 0.014 0.015 0.017
A3 0.012 0.012 0.015 0.012 0.010 0.012 0.013 0.013 0.016 0.015 0.014 0.018 0.016 0.017 0.018 0.019
A4 0.011 0.011 0.012 0.013 0.011 0.010 0.012 0.012 0.012 0.013 0.011 0.016 0.015 0.015 0.015 0.017
A5 0.009 0.012 0.010 0.011 0.017 0.012 0.011 0.011 0.010 0.011 0.012 0.016 0.014 0.013 0.012 0.014
A6 0.009 0.012 0.012 0.010 0.012 0.021 0.013 0.011 0.013 0.014 0.013 0.018 0.015 0.016 0.017 0.017
B1 0.012 0.013 0.013 0.012 0.011 0.013 0.020 0.015 0.013 0.014 0.018 0.016 0.016 0.015 0.016 0.020
B2 0.013 0.013 0.013 0.012 0.011 0.011 0.015 0.019 0.014 0.016 0.016 0.019 0.015 0.017 0.013 0.013
B3 0.015 0.012 0.016 0.012 0.010 0.013 0.013 0.014 0.030 0.022 0.017 0.021 0.019 0.017 0.015 0.012
B4 0.015 0.013 0.015 0.013 0.011 0.014 0.014 0.016 0.022 0.025 0.018 0.023 0.020 0.017 0.015 0.013
B5 0.013 0.015 0.014 0.011 0.012 0.013 0.018 0.016 0.017 0.018 0.026 0.016 0.017 0.015 0.013 0.015
B6 0.016 0.016 0.018 0.016 0.016 0.018 0.016 0.019 0.021 0.023 0.016 0.031 0.020 0.021 0.016 0.016
B7 0.015 0.014 0.016 0.015 0.014 0.015 0.016 0.015 0.019 0.020 0.017 0.020 0.027 0.019 0.015 0.014
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B8 0.012 0.014 0.017 0.015 0.013 0.016 0.015 0.017 0.017 0.017 0.015 0.021 0.019 0.025 0.012 0.014
B9 0.013 0.015 0.018 0.015 0.012 0.017 0.016 0.016 0.022 0.020 0.017 0.023 0.021 0.020 0.030 0.025
B10 0.016 0.017 0.019 0.017 0.014 0.017 0.020 0.020 0.020 0.020 0.022 0.022 0.023 0.023 0.025 0.033

with significance level, multiple correlation coefficient (R) and F-values for each
performance parameter are indicated in Table IV. The results show that various JIT success
factors depicted in the table have significant contribution with the respective manufacturing
performance parameters reported.
Finally, to calculate the inter-relationship between various JIT success factors and
manufacturing performance, canonical correlation analysis has been used. The main aim

Table III Values of Pearson correlation for all input and output categories
Pearson correlation B1 B2 B3 B4 B5 B6 B7 B8 B9 B10

A1 0.640 0.724 0.694** 0.762** 0.656 0.735 0.704 0.612** 0.598 0.681**
A2 0.800** 0.796** 0.591 0.682 0.788** 0.797 0.731 0.759 0.730 0.786**
A3 0.764** 0.785** 0.743** 0.789** 0.693 0.820** 0.804** 0.852** 0.813** 0.858
A4 0.703 0.763 0.586 0.707 0.600 0.768 0.797** 0.823** 0.731 0.791
A5 0.615 0.612 0.445 0.537 0.565 0.692** 0.630 0.632 0.530 0.610
A6 0.634 0.544 0.506 0.600 0.571 0.696 0.641 0.681 0.659 0.631
ⴱⴱ
Note: Correlation is significant at the 0.01 level (two-tailed)

Table IV Multiple regression between JIT implementation success factors with manufacturing performance parameters
Performance parameter Significance factor Beta value ␤ t-value Significance (p-value) R-value F-value

B1 A2 0.525 4.235 0.000 0.827 61.561

A3 0.345 2.786 0.007
B2 A2 0.467 3.837 0.000 0.833 64.770
A3 0.411 3.379 0.001
B3 A3 0.515 3.823 0.001 0.766 40.502
A1 0.295 2.192 0.015
B4 A3 0.499 4.208 0.000 0.824 60.443
A1 0.375 3.164 0.002
B5 A2 0.788 9.737 0.000 0.778 94.807
B6 A3 0.631 7.452 0.000 0.858 79.611
A5 0.317 3.739 0.000
B7 A3 0.455 3.443 0.001 0.836 66.029
A4 0.417 3.153 0.003
B8 A3 0.660 5.369 0.000 0.887 68.778
A4 0.446 3.795 0.000
A1 ⫺0.233 ⫺2.285 0.026
B9 A3 0.813 10.639 0.000 0.813 113.19
B10 A2 0.637 5.962 0.000 0.874 92.524
A1 0.277 2.591 0.012

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 in utilising canonical correlation analysis for data analysis is to know the relationships
between a set of multiple dependent (manufacturing performance parameters) and
multiple predictor variables (JIT success factors). The bivariate correlation between linear
composites of the predictor (JIT success factors) and criterion variables (manufacturing
performance parameters) is measured with canonical correlation. The results obtained by
applying canonical correlation analysis are shown in Table V. The results shown in column
1 of Table V show very strong and significant canonical correlation function (␤ ⫽ 0.975 at
F-statistic probability of 0.00) between the predictor set of JIT implementation dimensions
and the criterion set of manufacturing performance parameters. The observations of the
multivariate test statistics have also been statistically significant (p ⬍ 0.001). The
redundancy indices are 0.666 and 0.695 for the dependent and independent canonical
variates, respectively. The redundancy index indicates the amount of variance in a
canonical variate explained by the other canonical variate in the canonical function.
The canonical loadings for predictor set of various JIT success factors (A1, A2, A3, A4, A5
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and A6) on the independent variate has a range from 0.765 to 0.948. The criterion set of
manufacturing performance parameter variates (B1, B2, B3, B4, B5, B6, B7, B8, B9 and
B10) have also been found to be strongly loaded (range from 0.724 to 0.892) on the
dependent variate.
Because of the modest sample size, stability runs were made by dropping one variable at
a time and re-executing the canonical correlation analysis to assess the validity of the
canonical loadings. Of interest is the stability of the canonical loadings and the statistical
significance of the univariate and step-down F tests for the canonical correlation function.
The correlation between the individual predictor and criterion variables and their respective
canonical variates is measured by canonical correlation, and are similar in interpretation to
factor loadings. Columns 3, 4, 5, 6, 7 and 8 in Table V show the results of these stability runs

Table V Canonical correlation analysis between JIT implementation dimensions and manufacturing performance
results with stability analysis
Results after deletion of
Results with all variables A1 A2 A3 A4 A5 A6

Canonical correlation 0.975 0.975 0.968 0.961 0.975 0.974 0.972

Canonical root 0.011 0.018 0.022 0.021 0.017 0.014 0.014
F-statistic probability 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dependent variate
Canonical loadings
B1 ⫺0.842 ⫺0.842 ⫺0.820 ⫺0.844 ⫺0.843 ⫺0.843 ⫺0.844
B2 ⫺0.846 ⫺0.843 ⫺0.834 ⫺0.846 ⫺0.846 ⫺0.846 ⫺0.857
B3 ⫺0.724 ⫺0.718 ⫺0.743 ⫺0.689 ⫺0.727 ⫺0.722 ⫺0.770
B4 ⫺0.809 ⫺0.802 ⫺0.828 ⫺0.798 ⫺0.809 ⫺0.809 ⫺0.808
B5 ⫺0.787 ⫺0.781 ⫺0.744 ⫺0.803 ⫺0.792 ⫺0.785 ⫺0.792
B6 ⫺0.892 ⫺0.888 ⫺0.894 ⫺0.893 ⫺0.892 ⫺0.887 ⫺0.889
B7 ⫺0.848 ⫺0.847 ⫺0.869 ⫺0.843 ⫺0.845 ⫺0.849 ⫺0.846
B8 ⫺0.881 ⫺0.887 ⫺0.899 ⫺0.854 ⫺0.876 ⫺0.887 ⫺0.880
B9 ⫺0.835 ⫺0.839 ⫺0.840 ⫺0.810 ⫺0.832 ⫺0.844 ⫺0.831
B10 ⫺0.887 ⫺0.889 ⫺0.892 ⫺0.861 ⫺0.885 ⫺0.890 ⫺0.893
Shared variance 0.700 0.698 0.702 0.682 0.686 0.723 0.718
Redundancy index 0.695 0.716 0.671 0.669 0.699 0.699 0.703
Independent variate
Canonical loadings
A1 ⫺0.790 – ⫺0.797 ⫺0.802 ⫺0.793 ⫺0.786 ⫺0.798
A2 ⫺0.933 ⫺0.932 – ⫺0.960 ⫺0.935 ⫺0.908 ⫺0.936
A3 ⫺0.948 ⫺0.949 ⫺0.965 – ⫺0.946 ⫺0.926 ⫺0.951
A4 ⫺0.887 ⫺0.890 ⫺0.905 ⫺0.889 ⫺ ⫺0.868 ⫺0.889
A5 ⫺0.765 ⫺0.763 ⫺0.757 ⫺0.790 ⫺0.766 – ⫺0.766
A6 ⫺0.788 ⫺0.790 ⫺0.789 ⫺0.800 ⫺0.788 ⫺0.770
Shared variance 0.731 0.754 0.716 0.724 0.721 0.762 0.759
Redundancy 0.666 0.663 0.658 0.630 0.665 0.666 0.665

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 287

 corresponding to the deletion of criterion variables A1, A2, A3, A4, A5 and A6, respectively.
It is clear from the results in columns 3-8 in Table V that there is a stability of the canonical
loadings.

5. Result and discussion of relationship between various JIT success factors

and manufacturing performance parameters
The critical examination of the Pearson’s correlations shows that by adaptation of JIT
initiatives in the organisations, all the input factors (A1-A6) have significant impact on
realisation of overall manufacturing performance enhancements in the organisation. A3 is
found to be more significant of all these factors. The results reveal that organisation culture,
management’s commitment, employee’s involvement and workplace organisation (A1) JIT
purchasing (A2), product and manufacturing flexibility, facility layout (A3), production
system and process control, kanban and pull production, set-up time, quality (A4), daily
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schedule adherence and maintenance management, distribution and transportation

system (A5) can strategically contribute towards realisation of manufacturing performance
enhancements by affecting the organisational cultural transformations, thereby
institutionalising a favourable environment towards managing change in the organisation.

Validation of H1
The canonical correlation of r ⫽ 0.975 at F statistic probability of 0.00 from Table V depicts
a significant overall association between criterion set of various JIT success factors and the
pre-decided set of manufacturing performance parameters. Thus, H1 got validated in the
present context. Further, the Pearson’s correlations also show that there exists a significant
association between various JIT success factors and strategic manufacturing performance
parameters.
It has been observed from Table IV that culture of management, employee’s involvement
and workplace organisation (A1) have significant effect of supplier’s coordination and
relationship (B3), inventory levels (B4), maintainability (B8) and quality enhancement (B10).
As in JIT environment, purchasing of materials plays a very important role and multiple
suppliers are used to purchase the material. To give a fair deal to each supplier, an
organisation must have ethical business values and should be fair to each supplier and it
must imbibe ethical values to deal with its suppliers.
JIT culture of management and involvement of workers helps an organisation to reduce its
inventories, proper maintenance of equipment and machinery. JIT leads to enhancement in
quality of products because of team work and multi-skilling of workforce. Job rotation under
JIT systems create conditions for job enrichment and job enlargement and at the same time
catering for employees’ social needs. In JIT environment, problem solving abilities, ability
to face challenges and involvement of workers, reduces to great extent, WIP inventory,
thereby leading to enhanced equipment maintainability.
Holistic input factor JIT purchasing (A2) has a significant effect on output factors such as
over all organisational achievements (B1), firm’s culture and values (B2), product variety
and flexibility (B5) and quality enhancement (B10). The JIT purchasing leads to reduction
in waste, increases cyclic times, quality of product gets enhanced and very less and few
inspections are required and good quality material will be received.
Effective JIT implementation initiatives can contribute towards improvement of the
competitive position of the organisation leading to enhancement of productivity and more
returns on net assets and returns on capital employed. The factor (A3) product and
manufacturing flexibility, facility layout has exhibit significance on most of the
manufacturing performance measures like overall organisational achievements (B1), firm’s
culture and values (B2), supplier’s coordination and relations (B3), inventory levels (B4),
set-up time (B6), production (B7), maintainability of equipment (B8), delivery compliance
(B9) by commitment of management, workers participation, multi-skill labour, quality

PAGE 288 JOURNAL OF ASIA BUSINESS STUDIES VOL. 8 NO. 3 2014

 circles, better and ethical relationship with suppliers, improving synergy between
production and maintenance functions, affecting improvements in equipment reliability,
providing safe work environment, ensuring better upkeep of the production facilities,
improvements in operational efficiency, increased emphasis on planning and control,
elimination of procedural hassles, lowering in inventory and elimination of all kinds of
wastes associated with the manufacturing system.
Further, JIT initiative A4 can contribute effectively towards realisation of production (B7)
and maintainability (B8) shows lessening in downtime of production equipment, production
system stabilisation, enhancement in productivity and capabilities of human resource and
improvements in the manufacturing system reliability.
The results highlight that JIT implementation initiatives (A3) can contribute effectively
towards improvement of set-up time (B6) in the organisation by affecting improvements in
operational efficiency.
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In the end, from the above analysis, new JIT model for Indian manufacturing industry has
been shown in Figure 5. Figure clearly shows the effect of various input factors on the
performance measure. It is seen from the Figure 5 that most of the performance measures
are affected by input factor A3, and input factor A5 has least effect on the performance
measure.

Figure 5 JIT model depicting effect of implementation dimensions on performance

measure

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 289

 Validation of H2
Many pairs of JIT success factors and JIT performance parameters (marked as ** in
Tables III) having Pearson correlation ⱖ 40 per cent and statistically significant at 1 per
cent level of significance are considered as having a significant association. Thus, this
leads to validation of H2 in the present context.

6. Effect of JIT implementation on manufacturing performance improvements

over time
To check out the effect of JIT implementation with time on the manufacturing performance
parameters, the responses collected from various Indian manufacturing industries have
been grouped into three categories depending on the gain in experience with time, by
various manufacturing organisations towards implementing JIT initiatives, as shown in
Table VI.
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The gains in various parameters of manufacturing performance over time of the JIT
implementation are shown in Table VII. The table summarises the average and SDs of gains
gathered by various parameters of manufacturing performance due to implementation of
effective JIT initiatives in the manufacturing organisations. It has been seen that the mean
values of the improvements in manufacturing performance accrued in Phase III are
significantly higher than those obtained in Phase II and mean values of Phase II are also
significantly higher than those of Phase I. The significant change in manufacturing
performance parameters in the all three phases can be attributed to the fact that JIT
implementation in the Indian industry is gaining momentum, from the date of
implementation to the maturity Phase III, with only a few manufacturing organisations
having experience ⬎ five-six years regarding JIT practices. Table VIII shows the
comparative analysis of gain in manufacturing performance improvements by effective JIT
implementation programme with respect to time. The values are calculated by using a
statistical tool, two-tailed t-test, at the significance level of p at 0.05. All the tests at various
phases, i.e. t (II/I), t (III/I) and t (III/II) have been carried out to assure the statistical
difference in effectiveness of various manufacturing performance improvements gained as
a result of successful JIT implementation initiatives.
The t (II/I) (stabilising phase), t (III/I) (maturity phase) and t (III/II) (intermediate phase
between stabilising and maturity phases) values are depicted in Table VIII. The values of
various manufacturing performance improvement parameters for t(II/I) phase indicates the
significant realisation of improvement in manufacturing performance in stabilising phase as
compared to introductory phase. Similarly, t (III/I) values show that maturity phases also
have significant realisation of manufacturing performance improvements as compare to

Table VI Classification of responses based on JIT implementation period

Organization’s experience in JIT
Serial Number Category implementation Number of responses (N)

1 Introductory phase (Phase I) Less than three years 22

2 Stabilization phase (Phase II)
3 Maturity phase (Phase III)
Organization experiences cultural changes,
devices mechanisms for overcoming internal
resistances towards changes
More than three years but less than five years 18
Stabilizes the JIT improvement initiatives
More than five years 20
JIT improvement initiatives enter maturity
phase with emphasis on manufacturing
performance improvement
Holistic deployment of all the JIT elements
Improved performance in terms of cost
reduction and enhanced manufacturing
flexibilities

PAGE 290 JOURNAL OF ASIA BUSINESS STUDIES VOL. 8 NO. 3 2014

 Table VII Results of enhancement in parameters of manufacturing performance based on JIT implementation period
Phase I Phase II Phase III
Performance N ⫽ 22 N ⫽ 18 N ⫽ 20
Parameters Mean SD Mean SD Mean SD

B1 2.45455 0.460566 3.16667 0.230887 3.52500 0.258411

B2 2.77273 0.435815 3.33333 0.383482 3.76250 0.383482
B3 2.43636 0.439204 3.10000 0.566724 3.75000 0.170139
B4 2.37879 0.507045 3.05556 0.235702 3.55000 0.394034
B5 2.46591 0.513482 3.16667 0.284398 3.62500 0.425348
B6 2.14773 0.375270 2.75000 0.514496 3.48750 0.384528
B7 2.30682 0.344444 2.91667 0.411239 3.58750 0.423605
B8 2.46591 0.347572 3.16667 0.428746 3.75000 0.229416
B9 2.05682 0.307948 2.72222 0.444649 3.41250 0.467883
B10 2.47727 0.481250 3.20833 0.523352 3.88750 0.151201
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Table VIII Two-tailed t-test results for manufacturing performance improvement parameters with respect to variable
periods
Performance parameters Phase I Phase II Phase III t(II/I) (p-value) t(III/I) (p-value) t(III/II) (p-value)

B1 2.45455 3.16667 3.52500 6.34 (0.000) 9.395 (0.000) 4.514 (0.000)

B2 2.77273 3.33333 3.76250 4.325 (0.000) 9.131 (0.000) 4.040 (0.000)
B3 2.43636 3.10000 3.75000 4.068 (0.000) 12.977 (0.000) 4.680 (0.000)
B4 2.37879 3.05556 3.55000 5.568 (0.000) 8.398 (0.000) 4.747 (0.000)
B5 2.46591 3.16667 3.62500 5.459 (0.000) 7.939 (0.000) 3.939 (0.000)
B6 2.14773 2.75000 3.48750 4.146 (0.000) 11.407 (0.000) 4.961 (0.000)
B7 2.30682 2.91667 3.58750 5.015 (0.000) 10.685 (0.000) 4.950 (0.000)
B8 2.46591 3.16667 3.75000 5.592 (0.000) 14.248 (0.000) 5.147 (0.000)
B9 2.05682 2.72222 3.41250 5.358 (0.000) 10.976 (0.000) 4.661 (0.000)
B10 2.47727 3.20833 3.88750 4.556 (0.000) 13.054 (0.000) 5.310 (0.000)

introductory phase. The values of t (III/II) in Table VIII also show that there is significant
improvement in manufacturing performance during the stabilising and maturity phases. It
is, thus, concluded that organisations starts reaping of JIT benefits since the
implementation of JIT.

Acceptance of H3
H3 is accepted fully in the present context, as the manufacturing performance
enhancement in all the three phases is highly significant.

Conclusions
For achievement of vital benefits to meet the challenges of global competition, the present
study highlights the contributions made by various JIT implementation initiatives in the
Indian industry. A pragmatic analysis has been applied in this study so as to recognise the
role of JIT success factors in attaining convincing manufacturing performance
enhancements in the Indian manufacturing organisations. For the purpose, categories of
various JIT success factor and manufacturing performance factors have been established
in the study. To support how critical JIT success factors and key manufacturing
performance enhancement parameters are related to each other, empirical evidence has
been presented in the study. The research reveals that the JIT initiatives have great
influence in affecting manufacturing performance improvements, improvement of culture of
an organisation, involvement of employees, quality, etc. This authenticates that JIT
initiatives have extremely high potential in recognising overall competencies of the
organisation. The research also acknowledged the fact that the top management can play
a major role towards achievement of improvements in manufacturing performance by
providing competent framework for JIT implementation, implementing an efficacious
reward and recognition system in the organisation and providing resources for coping up

VOL. 8 NO. 3 2014 JOURNAL OF ASIA BUSINESS STUDIES PAGE 291

 with change in the organisation. The abovementioned factors augur the usefulness of
treating manufacturing performance as a multi-dimensional concept. The study revealed
that cogent initiatives of JIT can significantly contribute towards achievement of
enhancements of strategic manufacturing performance so as to compete in the highly
dynamic global scenario. This interdependence can assist in understanding the effect of
various success factors of JIT towards attainment of organisation objectives of
sustainability and growth. To achieve the desired output, JIT initiatives need to be managed
carefully in the organisation. The manufacturing managers must be acquainted with the
existing interdependencies within the various JIT initiatives so as to be able to manage the
strategic JIT initiatives effectively towards attaining world class manufacturing. It is,
therefore, concluded that to implement JIT programme successfully in the organisation, it
is essential for the manufacturing managers to have an in-depth understanding of the
working and synergy of the different features of JIT, so that true potential of the JIT concept
can be fulfilled.
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Further, the present research affirms the fact that implementation of JIT programme does
not bring about immediate results. It requires systematic planning and a focused plan of JIT
implementation, assisted adequately by top management through adequate enhancement
in culture of organisation over adequate time to attain the true results from the holistic JIT
implementation programme.

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About the authors

Gurinder Singh holds a Bachelor’s Degree in Mechanical Engineering from Guru Nanak
Dev Engineering College, Bidar, Karnataka, India, and a Master’s Degree in Production
Engineering from Guru Nanak Dev Engineering College, Ludhiana, Punjab, India.
Presently, he is working as a Senior Lecturer in the Mechanical Engineering Department at
Government Polytechnic College, Mohali, Khunimajara, Punjab, India. His main research
area is JIT manufacturing. Gurinder Singh is the corresponding author and can be
contacted at: gurgur2001@yahoo.com
Inderpreet Singh Ahuja holds a Bachelor’s Degree in Mechanical Engineering and Master’s
Degree in Industrial Engineering from Thapar Institute of Engineering and Technology,
Patiala, Punjab, India, and a PhD from Punjabi University, Patiala, Punjab, India. Presently,
he is working as a Professor in Mechanical Engineering at University College of
Engineering, Punjabi University, Patiala, Punjab, India. His main research areas are TQM,
JIT manufacturing and TPM.

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PAGE 294 JOURNAL OF ASIA BUSINESS STUDIES VOL. 8 NO. 3 2014