1. Summarize the article.

Many widespread managerial concepts are expressed as

abbreviations of two or three letters. In addition, they have
often been introduced and treated as new-to-the-world by both
scholars and practitioners. For example, Just-In-Time (JIT) is a
managerial concept that has been heavily promoted in the world-
wide automotive industry. Its underlying principles have been
implemented by most car manufacturers or car assemblers for many
decades. JIT, as a phenomenon, has been named differently at
different times during the last century. Therefore, the newness
of JIT and its underlying principles is questioned in the
article. The article describes parts of the historic evolution of
JIT during the twentieth century in literature. It is concluded
that JIT is just a reincarnation of past theory and practice.

2. Answer the following questions comprehensively for the

selected article:
a. What were the underlying issues or major ideas and
concepts presented in the paper? Explain.

JIT signifies a continuous search for waste reduction and to make

only what is needed “just in time” (Toyoda, 1987). Its underlying
principles have been implemented in the world-wide automotive
industry. Like many other recent managerial concepts, JIT is
suffering from the absence of roots in literature. The objective
of this article is to describe the historical evolution of JIT in
literature from the beginning of the twentieth century. The
contents of the article are supported by references in literature
from the beginning of the twentieth century until today.

Initially, in order to clarify its meaning to some extent, one

might state that JIT embodies a philosophy of excellence to
establish demand-pull inventory practices that produce products
to design specifications at a rapid, smooth delivery rate with no
idle inventories, no unnecessary lead-times, and increased
employee involvement in the marketing channel (Forgarty et al.,
1989).

It should be noted that JIT is not an academic concept or a

concept created by consultants, but was a concept created at
Toyota Motor Company in order to manage its internal activities
and the relationships to subcontractors as efficiently as
possible (Heiko, 1989). An interesting comparison might be made
to two other managerial concepts, namely “supply chain
management” and “efficient consumer response”.
A further development of the JIT philosophy is quick response
(QR), which is a concept that has its origin within American
textile industry. QR is defined as the application of just-in-
time concepts throughout the entire supply pipeline, from the
manufacturer to the final consumer, provides the capability to
reorder merchandise as it is sold.

Supply chain management (SCM) and supply chains are two other
concepts that have been popularized in recent years. They are
also closely related concepts in relation to JIT. The supply
chain is a network of organizations that are involved, through
upstream and downstream linkages, in the different processes and
activities that produce value in the form of products and
services in the hands of the ultimate consumer. Another more
concise definition of SCM is an integrating philosophy to manage
the total flow of a distribution channel from supplier to
ultimate customer.

ECR is another concept which is used in the world-wide grocery

and retail industry. The ultimate goal of ECR is a responsive
consumer-driven system in which distributors and suppliers work
together as business allies to maximize consumer satisfaction and
minimize cost.

JIT is strongly associated to marketing channel theory. A

marketing channel and a supply chain have a vertical emphasis, so
that horizontal matters are not usually included. Therefore, the
theoretical perspective in this article of JIT in marketing
channels is supported by and limited to channel theory.
Traditionally, channel literature has concentrated on vertical
dependencies between firms in the marketing channel. A marketing
channel consists of a number of actors or intermediaries that
take part in the exchange process, since they may improve the
efficiency of the channel (Alderson, 1954).

Definitions

It is based upon the simple idea that wherever possible no

activity should take place in a system until there is a demand
for it. Thus no products should be made, no components ordered,
until there is downstream requirement ( Christopher, 1992)- Pull
Strategy
It is a philosophy of scheduling wherein the entire supply
channel is synchronized to respond to the requirements of
operations or customer (Ballou).

It is an approach for providing smoother production flows and

making continual improvements in processes and products
(Aggarwal, 1985).

JIT is a philosophy where all goods are to arrive exactly when

they are needed, that is, neither too soon nor too late (Hall,
1983).

Monden (1981a, b) defines JIT as the idea of producing the

necessary quantities at the necessary time.
Rao and Scheraga (1988) comment that JIT is an approach to
production management that can yield enormous productivity
increases, inventory reductions, and quality improvements.

JIT is manufacturing without inventories, and the elimination of

waste (Schonberger 1982).

In literature, the richness of different definitions is

overwhelming. Thus published definitions of JIT are often given
different meanings. However, two main components of the
definitions seem to appear repeatedly, namely, a continuous
search for waste reduction and to make only what is needed just
in time. This is well in accordance with the concept’s original
definition (Toyoda, 1987).

Objectives

In the same way that the meaning of JIT is unclear and ambiguous
in literature, the objectives of JIT are nevertheless very much
dependent upon the author.

Aggarwal (1985) see JIT’s core objectives as obtaining low-cost,

high-quality, and on-time production. Hall (1983) writes that the
objectives of JIT are a stockless production and an elimination
of waste. Monden (1981a,b) defines the goals as the reduction of
costs surrounding production processes, and the system also helps
to increase the turnover ration of capital.
Rao and Scheraga (1988) comment that the purpose is to eliminate
all waste. Waste refers to any incurred cost such as inventory,
set-up, scrap, and rework that does not add value of the product.
Schonberger (1982) states that the objectives are to produce and
deliver all kinds of goods only at the time needed.
Shingo (1984) looks at its goals as achieving stockless
manufacturing, that is, each process should be provided with the
right components, the right quality and at the right time.
Vollmann et al. (1988) state that it is about the reduction of
the slack to zero in a firm’s activities. Finally, De Treville
(1987) argues that the aim of JIT is quite simply success.

The objectives of JIT are hard to interpret due to lack of

homogeneity in literature. However, two objectives seem to be
common denominators: a continuous search for waste reduction and
to make only what is needed in time. This is well in accordance
with the concept’s original definition (Toyoda, 1987).

Means

Firms may, according to the literature, take many different

actions to achieve the main objectives of JIT, which certainly
vary to the same extent as the definitions and objectives.

Aggarwal (1985) states that to achieve the objectives of JIT the

systems strives to eliminate stock or buffers between the
successive processes, and to minimize any idle equipment,
facilities, or workers.

Hall (1983) writes more concisely that it is a matter of reducing

inventories. Monden (1981a,b) argues that the JIT ideal is
achieved through the smoothing of production, the design of
processes, and the standardization of jobs. Rao and Scheraga
(1988) state that it is to design product structures so that a
small number of materials and parts can be purchased, fabricated,
and assembled into components, to install pull signals on the
shop floor, and improved reporting on quality performance.
Schonberger (1982) says that it is about total quality management
and continuous improvements. Shingo (1984) argues for a shorter
manufacturing run-through reduction of machine failures,
diminished set-up times, flexible manufacturing, and so on.
Vollmann et al. (1988) state that it is about changes in
physical systems, the reduction of set-up times, and a drive
towards lot sizes that are constantly smaller, as well as the
reduction of inventory levels et cetera. Finally, De Treville
(1987) argues that it is to reduce buffer size, and to use
disruption to cause learning in order to remove organizational
slacks.
Consequently, the means to achieve the objectives of JIT vary
between authors, as do their definitions and objectives. The
agreement concerning the benefits that may be obtained through
the implementation of JIT such as: reduced inventory, lowered
unit costs, improved quality, more rapid reaction to changes in
design, and increased productivity.

JIT- a historic review

Conclusion

The main message in this article is that JIT is not new-to-the-

world, but a suitable and attractive etiquette or name that has
gained world-wide acceptance in the last decades. However, its
underlying thoughts and principles are long since documented in
literature.

Strengths of JIT
There is much strength to incorporating JIT lean manufacturing in
a company. JIT makes production operations more efficient, cost
effective and customer responsive. JIT allows manufacturers to
purchase and receive components just before they’re needed on the
assembly line, thus relieving manufacturers of the cost and
burden of housing and managing idle parts.
JIT manufacturing can be a real money-saver for a company.
Companies are not only more responsive to their customers, but
they also have less capital tied up in raw materials and finished
goods inventory, allowing companies to optimize their
transportation and logistics operations (UPS, 2003).
Overall, JIT manufacturing results in lower total system costs
and improved product quality. With JIT, some plants have reduced
inventory more than fiftypercent and lead time more than eighty-
percent (Droge, 1998). JIT is lowering costs and inventory,
reducing waste, and raising the quality of products.

Weaknesses of JIT
Just as JIT has many strong points, there are weaknesses as well.
“In just-intime, everything is very interdependent. Everyone
relies on everybody else” (Greenberg, 2002). Because of this
strong interdependence with JIT, a weakness in the supply chain
caused by a JIT weakness can be very costly to all linked in the
chain. JIT processes can be risky to certain businesses and
vulnerable to the supply chain in situations such as labor
strikes, interrupted supply lines, market demand fluctuations,
stock outs, lack of communication upstream and downstream in the
supply chain and unforeseen production interruptions.

b. What were the findings of the paper? Explain.

 c. What contributions does the paper make to the
advancement of knowledge, theory, and practice? Why?

d. What are the limitations of the paper? Explain.

The paper presents only the application of JIT in automotive

industry since

e. Can the findings of the paper have a potential for

future research in the Philippine settings? Explain.

3. Be sure you have prepared before presenting in class.

Questions will be asked after the presentation by fellow
students and by the professor.

4. Use your own design in preparing the PowerPoint slides (the

simpler the better).

5. Cite references (in APA format).*

*Note: You may refer to and cite other references to
enrich your ideas on the major ideas and concepts in
the main article.

6. You will be graded based on the quality of your presentation

and how you will respond to questions or reactions from your
classmates and professor.