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The Impact of Just-in-Time Manufacturing and Its Infrastructure on Manufacturing Performance

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Author Info

  • Sadao Sakakibara

    (Faculty of Business and Commerce, Keio University, 2-15-45 Mita, Minato-ku, Tokyo 108 Japan)

  • Barbara B. Flynn

    (Babcock Graduate School of Management, Wake Forest University, Winston-Salem, North Carolina 27109-7659)

  • Roger G. Schroeder

    (Operations and Management Science Department, University of Minnesota, Minneapolis, Minnesota 55455)

  • William T. Morris

    (Operations and Management Science Department, University of Minnesota, Minneapolis, Minnesota 55455)

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    Abstract

    We consider Just-in-Time (JIT) to be an overall organizational phenomenon. Accordingly, we developed and tested a model that includes both JIT practices and the infrastructure practices hypothesized to provide an environment in which JIT practices perform more effectively. Canonical correlation analysis was used to test five hypotheses. The results indicated that: (1) there was not a significant relationship between the use of JIT practices, alone, and manufacturing performance, (2) there was a very strong relationship between JIT practices and infrastructure practices; (3) the combination of JIT management and infrastructure practice was related to manufacturing performance; (4) infrastructure, by itself, is sufficient to explain manufacturing performance; and (5) manufacturing performance was related to competitive advantage. These findings provide support for the notion that JIT is an overall organizational phenomenon, rather than limited to strictly shop floor practices, and that at least part of its effect on manufacturing performance may be through providing a set of improvement targets and discipline for the entire organization. In addition, the analysis highlights the areas of infrastructure practice most relevant for future research.

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    File URL: http://dx.doi.org/10.1287/mnsc.43.9.1246
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 43 (1997)
    Issue (Month): 9 (September)
    Pages: 1246-1257

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    Handle: RePEc:inm:ormnsc:v:43:y:1997:i:9:p:1246-1257

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    Related research

    Keywords: empirical study; just-in-time manufacturing; manufacturing performance;

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    Cited by:
    1. Bergenwall, Amy L. & Chen, Chialin & White, Richard E., 2012. "TPS's process design in American automotive plants and its effects on the triple bottom line and sustainability," International Journal of Production Economics, Elsevier, vol. 140(1), pages 374-384.
    2. Thun, Jörn-Henrik & Hoenig, Daniel, 2011. "An empirical analysis of supply chain risk management in the German automotive industry," International Journal of Production Economics, Elsevier, vol. 131(1), pages 242-249, May.
    3. Nobuyuki Hanaki & Jason Barr, 2005. "Firm Structure, Search and Environmental Complexity," Computing in Economics and Finance 2005 222, Society for Computational Economics.
    4. Voros, Jozsef, 2002. "Product balancing under conditions of quality inflation, cost pressures and growth strategies," European Journal of Operational Research, Elsevier, vol. 141(1), pages 153-166, August.
    5. Jayaram, Jayanth & Das, Ajay & Nicolae, Mariana, 2010. "Looking beyond the obvious: Unraveling the Toyota production system," International Journal of Production Economics, Elsevier, vol. 128(1), pages 280-291, November.
    6. Kim, Seung-Lae & Ha, Daesung, 2003. "A JIT lot-splitting model for supply chain management: Enhancing buyer-supplier linkage," International Journal of Production Economics, Elsevier, vol. 86(1), pages 1-10, October.
    7. Yee, Rachel W.Y. & Yeung, Andy C.L. & Edwin Cheng, T.C., 2010. "An empirical study of employee loyalty, service quality and firm performance in the service industry," International Journal of Production Economics, Elsevier, vol. 124(1), pages 109-120, March.
    8. White, Richard E. & Prybutok, Victor, 2001. "The relationship between JIT practices and type of production system," Omega, Elsevier, vol. 29(2), pages 113-124, April.
    9. Kull, Thomas J. & Yan, Tingting & Liu, Zhongzhi & Wacker, John G., 2014. "The moderation of lean manufacturing effectiveness by dimensions of national culture: Testing practice-culture congruence hypotheses," International Journal of Production Economics, Elsevier, vol. 153(C), pages 1-12.
    10. Vörös, József, 2003. "A minőség figyelembevételének szükségessége az egyensúlyi állapot meghatározásában
      [The need to consider quality when determining a state of equilibrium]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 6-21.
    11. Krishnan, Murugappa (Murgie) & Srinivasan, Ashok, 2007. "How do shop-floor supervisors allocate their time?," International Journal of Production Economics, Elsevier, vol. 105(1), pages 97-115, January.
    12. Kannan, Vijay R. & Tan, Keah Choon, 2005. "Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance," Omega, Elsevier, vol. 33(2), pages 153-162, April.
    13. Konecny, Philipp A. & Thun, Jörn-Henrik, 2011. "Do it separately or simultaneously--An empirical analysis of a conjoint implementation of TQM and TPM on plant performance," International Journal of Production Economics, Elsevier, vol. 133(2), pages 496-507, October.
    14. Obermaier, Robert, 2012. "German inventory to sales ratios 1971–2005—An empirical analysis of business practice," International Journal of Production Economics, Elsevier, vol. 135(2), pages 964-976.
    15. Machuca, José A.D. & Ortega Jiménez, Cesar H. & Garrido-Vega, Pedro & de los Ríos, José Luis Pérez Diez, 2011. "Do technology and manufacturing strategy links enhance operational performance? Empirical research in the auto supplier sector," International Journal of Production Economics, Elsevier, vol. 133(2), pages 541-550, October.
    16. Yang, Chen-Lung & Lin, Shu-Ping & Chan, Ya-hui & Sheu, Chwen, 2010. "Mediated effect of environmental management on manufacturing competitiveness: An empirical study," International Journal of Production Economics, Elsevier, vol. 123(1), pages 210-220, January.
    17. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications, The World Bank, number 2616, August.
    18. Cannon, Alan R., 2008. "Inventory improvement and financial performance," International Journal of Production Economics, Elsevier, vol. 115(2), pages 581-593, October.
    19. Banker, Rajiv D. & Bardhan, Indranil R. & Chen, Tai-Yuan, 2008. "The role of manufacturing practices in mediating the impact of activity-based costing on plant performance," Accounting, Organizations and Society, Elsevier, vol. 33(1), pages 1-19, January.
    20. Demeter, Krisztina & Matyusz, Zsolt, 2011. "The impact of lean practices on inventory turnover," International Journal of Production Economics, Elsevier, vol. 133(1), pages 154-163, September.
    21. Tomas Bonavia & Juan A. Marin-Garcia, 2011. "Integrating human resource management into lean production and their impact on organizational performance," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 923-938, November.
    22. Thun, Jörn-Henrik, 2008. "Empirical analysis of manufacturing strategy implementation," International Journal of Production Economics, Elsevier, vol. 113(1), pages 370-382, May.
    23. Ortega Jiménez, César H. & Garrido-Vega, Pedro & Pérez Díez de los Ríos, José Luis & García González, Santiago, 2011. "Manufacturing strategy-technology relationship among auto suppliers," International Journal of Production Economics, Elsevier, vol. 133(2), pages 508-517, October.

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