Indian J.Sci.Res. 7 (1): 001-016, 2014
ISSN: 0976-2876 (Print)
ISSN: 2250-0138(Online)
EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
(CASE STUDY: IRAN KHODRO'S ASSEMBLY LINE 2)
KAMRAN RAHMANIa AND MOHAMMAD AMIN NAYEBIb1
a
Departement of Industrial Management, Qazvin Branch, Islamic Azad University, Qazvin, Iran
b
Young Researchers & Elite Club, Naghade Branch, Islamic Azad University, Naghade, Iran
ABSTRACT
Survival in the competition is considered as one of the most critical needs of any organization. Philosophy during
production (JIT), remove any waste is accepted as one of the strategies and used by many organizations. JIT is a new system with
inventory control and its main purpose is to minimize inventories and prevent stagnant capital to form. Implementation of this
system leads to changes in the tools used by managers for planning and control decisions. "Just in time", is one of the newest
approaches in production management issue that industry leaders around the world, the Japanese have been initiated, and was
first employed at Toyota car plant, which was followed by a considerable success. This paper investigates the impact of using JIT,
the automotive industry, as the country's largest car manufacturer. The study is the second assembly line for the company. The
research method is descriptive and correlation, and for this purpose, regression and ANOVA were used. Population and sample
are production and quality managers, warehouse managers, supervisors and foremen and supervisors responsible for training and
installation engineering. The results of this study showed a significant association between implementation JIT and organizational
performance.
KEYWORDS: Just in time production (JIT), Automotive Industries, Organizational Performance
The world is changing, and the pace of change in
our time is, more than any other time in human history.
Organizations and societies, in order to obtain success,
need to adapt it selves with the changes. Organizations and
societies that fail to comply with its parallel changes in
optimistic terms, than their competitors would be
weakened. Transition economies based on number of
customers access via the Internet, and increasing levels of
variability and age -based economies of scale enjoyed by
organizations, each of which has been to reduce their costs,
and they eliminate waste, and increase your productivity.
In this context, the organizations had to turn JIT systems,
as a fundamental principle and detailed. However, the JIT
production management is one of the newest approaches to
the issue, which has been provided by the Japanese in
1952, but in the short time after its creation, companies and
organizations in the world use this method.
JIT may be described as an extension of the
original concept of managing the material flow in a factory
to reduce the inventory levels. In fact, there is much more
involved in a manufacturing organization than reducing
inventories to control costs. Manufacturing has to deal
with other issues, such as process control, level of
automation, flexible manufacturing, machine set up times,
direct labor productivity, Overhead, supplier management,
engineering support, and the quality of product delivered
to customers(Gupta; 2012). JIT has been developed,
1
Corresponding author
because, beyond the act of an inventory control method,
and it is a philosophy, the philosophy used in the
production of, and seeks to remove all the waste of
resources. In line with what was said, this study intends to
examine the effects of the process of implementing the JIT
model, 2 assembly lines of automobile, automobile
industry, one of the biggest car manufacturing factory in
Iran.
LITERATURE REVIEW
"Just-in-Time" means making "only what is
needed, when it is needed, and in the amount needed." For
example, to efficiently produce a large number of
automobiles, which can consist of around 30,000 parts, it is
necessary to create a detailed production plan that includes
parts procurement. Supplying "what is needed, when it is
needed, and in the amount needed" according to this
production plan can eliminate waste, inconsistencies, and
unreasonable requirements, resulting in improved
productivity (www.toyota-global.com). The Just-in-Time
(JIT) philosophy advocates: producing and/or delivering
only the necessary parts, within the necessary time in the
necessary quantity using the minimum necessary
resources. Ideally, the appropriate number of parts are
produced and immediately shipped when the customer
order is received. Upstream processes and suppliers deliver
exactly the appropriate quantity of components when the
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
downstream process needs them. In this situation there is
no need for inventory. Eliminating all inventory and workin-process (WIP) is impossible in the practical sense. The
key to manufacturing efficiency is continuously decreasing
the quantity of each in the system. There is a general
tendency to react to problems by accumulating a reserve of
stock based on an estimate of quality defects, equipment
breakdown and team member absenteeism. Toyota,
however, is opposed to using stock build-up to counter
these problems. Keeping excess stock means the various
production problems are hidden or glossed over. This
makes it impossible to establish a work site with a strong
constitution. Stock used to compensate for production halts
due to defects or machine and equipment breakdowns
hides the fact that these are problems. This hides the need
to forestall problems, prevent their recurrence, or improve
the operational rate when defects or breakdowns occur. JIT
manufacturing helps identify opportunities for perfecting
processes rather than creating space for inventories. A key
element of the Just-in-Time philosophy is the Pull System
(www.artoflean.com). In the TPS (Toyota Production
System), a unique production control method called the
"Kanban System" plays an integral role. The Kanban
system has also been called the "Supermarket method"
because the idea behind it was borrowed from
supermarkets. Such mass merchandizing stores use product
control cards upon which product-related information, such
as a product's name, code and storage location, are entered.
Because Toyota employed Kanban signs for use in their
production processes, the method came to be called the
"Kanban system." At Toyota, when a process refers to a
preceding process to retrieve parts, it uses a Kanban to
communicate which parts have been used(www.toyotaglobal.com). Many researchers believe that, just this time
(JIT), a philosophy of continuous improvement, which
makes the detection and removal, the non-value added
activities, reduce costs, and improve product quality,
performance and time, and increase production flexibility
and encourage innovation in the workplace (Bonney;
1994Y, De Hann &Yamamoto; 1999, Hall; 1981, Hall;
1987, Slack et al., 1995). JIT implementation in different
organizations, representing a cost reduction and quality
improvement (Crawford et al., 1993). JIT is a technology
that organizations can use; it will have to compete
successfully in today's competitive world (Kothari; 1990,
White & Ruch; 1990). Wallace defines just in time (JIT) as
an approach to achieve excellence in a manufacturing
company, which is based, continuous elimination of waste,
and sustainable improvements in productivity (Wallace;
Indian J.Sci.Res. 7 (1): 001-016, 2014
1990). Continuous control of manufacturing processes,
with the goal of eliminating waste of all cases, is the key
point in understanding the JIT (Omachonu & Vinvent;
1994, Wallace; 1990). Production and Inventory Control
Society of America, (APICS) JIT knows, a manufacturing
philosophy, which is based on a management program that
detects and eliminates all wasted, and stresses on plant
productivity. Fans just in time look at the inventory as a
waste, all of which are hazardous because of inventory
problems to solve instead of concealing them (Francis;
1989, Golhar et al.; 1990, O'Grady; 1988). JIT gives
authority to the agency, to any of the components to be
used, when necessary, as a result, leads to inventory
reduction and cost savings (Schniederjans & Kim; 1990,
Omachonu & Vinvent; 1994). Many studies have shown
that organizational philosophy of JIT is the potential to
increase organizational effectiveness and efficiency
(Ansari; 1986, Arogyaswamy & Simmons; 1991,
Bromwich & Bhimani; 1991, Crawford et al.; 1993, Inman
& Mehra; 1991, Lee; 1996, Ramarapu et al.; 1995, Tesfay;
1990, Vokurka & Davis; 1996). Understanding the
concepts of JIT, to eliminate waste and improve efficiency
sounds simple in theory. But in reality, the implementation
of these concepts is a complex problem due to the need for
fundamental organizational change (Cheng; 1993, Heiko;
1990). From an operational perspective, the production JIT
requires that the waste of overproduction, waiting time,
travel, transportation, inventory, process and product
malfunction, shall be identified and eliminated. One of the
essential principles of success in producing JIT, initially, is
to minimize inventory in the supply chain. Delivery
available in sizes small, frequently, performance will be
achieved (Alles et al.; 2000, Billesbach; 1991). Second, is
the use of Kanban, That is, a system of production and
inventory control, some form of pulling? (Monden; 1981,
Monden; 1983, Natarajan; 1991). The third step is to
develop a strategy based on employee contributions, to
encourage employees to eliminate waste (Alles; 2000,
Golhar & Stamm; 1991). Additionally, immediate
awareness of quality, causes, creativity and ideas to pay
employees, failure to control and improve the production
system. The most important thing is that, most of the
workers have to stop the production line when the problem
was detected (Schonberger; 1982, Schonberger; 1986,
Upton; 1995).
Once JIT systems, be implemented throughout the
organization, leads the organization to benefit from a key
advantage of the contest. As a result, performance is
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
increased, due to reduced losses in purchasing, operations,
distribution, sales and accounting (Brox & Fader; 1997,
Green et al.; 1991, Gonzalez-Benito et al.; 2000; Markham
& McCart; 1995). Other benefits of JIT, in the related
studies include:
1 -Eliminate waste and raw material (Hobbs; 1997; Tesfay;
1990).
2 -Improve internal communication throughout the
organization, and improve external connect, between
organizations, customers, and suppliers (Inman & Mehra;
1991).
4 -Reduce delivery time, reduce operating time, increase
productivity and improve customer responsiveness
(Gargeya & Thompson; 1994, Crawford & Cox; 1991,
Cook; 1996, Hobbs; 1997, White & Ruch; 1990).
5 -Developing organizational discipline and involved
management (Francis, 1989).
6 -Integration of various functional areas in the
organization, especially between production and
accounting (O'Grady; 1988; Johnson; 1988).
Furthermore, some studies related to JIT, come in
the Table 1, briefly.
3 -Lowering procurement costs, the major cost of most
organizations (Billesbach; 1991; Gargeya & Thompson;
1994).
Table 1: Overview of the literature on JIT
Research Title
Just in Time Revisited: Literature Review and Agenda for Future
Research
Information and incentive effects of inventory in JIT production
Survey identifies critical factors in successful implementation of
Just-in-Time purchasing techniques
Just-in-Time purchasing
Thriving on interdependence: the key to JIT implementation
Year
2012
Researcher
Gupta
Journal/Publication
IJRMET
2000
1986
Alles et al.
Ansari
Management Science
Industrial Engineering
1990
1991
Ansari & Modarress
Arogyaswamy & Simmons
A study of the implementation of Justin-Time in the United States
Trends in inventory management
1991
1994
Billesbach
Bonney
Simplifying the process
Accounting for just-in-Time manufacturing systems
Assessing the impact of JIT using economic theory
The impact of critical success factors of JIT implementation on
organizational performance
Just-in-time manufacturing- an introduction
A study of JIT implementation and operating problems
1992
1991
1997
1996
Boothroyd
Bromwich & Bhimani
Brox & Fader
Chang & Lee
The Free Press, New York, NY.
Production and Inventory Management
Journal
Production and Inventory Management
International Journal of Production
Economics
Manufacturing Breakthrough
Management Accounting
Journal of Operations Management
Production Planning & Control
1993
1994
Cheng & Podolsky
Crawford et al.
Addressing manufacturing problems through the implementation
of just-in-time
Applying JIT principles to continuous process manufacturing
supply chains
Zero inventory management: facts or fiction?
HRM practices of JIT firms in Canada
The Japanese Just-in time/Total quality control production
system: Potential for developing countries
Building a practical JIT program
Critical Analysis in JIT purchasing in Indian Context
Work culture in JIT environment
Just-in-Time production in small job shops
Performance measures and JIT
JIT implementation in small manufacturing firms
1991
Crawford & Cox
1996
Cook
1999
1996
1984
1989
1996
1995
1994
1991
1990
De Hann & Yamamoto
Deshpande & Golhar
Ebrahimpur &
Schonberger
Francis
Garg et al.
Garg et al.
Gargeya & Thompson
Green et al.
Golhar et al.
The just-in-time philosophy: a literature review
1991
Golhar & Stamm
Complementarities between JIT purchasing practices: an
2000
Gonzalez-Benito & et al.
Indian J.Sci.Res. 7 (1): 001-016, 2014
New York: Chapman and Hall
International Journal of Production
Research
Production and Inventory Management
Journal
Production and Inventory Management
Journal
Lessons from Japan
Production Planning and Control
International Journal of Production
Research
Traffic Management
Productivity
Productivity
Industrial Management
Management Accounting
Production and Inventory Management
Journal
International Journal of Production
Research
International Journal of Production
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
economic analysis based on transaction costs
Inventory control problems in developing countries
Economics
International Journal of Operations and
Production Management
Production Planning and Control
New York: Dow Jones-Irwin
1984
Goonatilake
Implementation of Just-in-Time in a small company: a case study
Attaining manufacturing excellence: Just- in time manufacturing,
total quality, total people involvement
Production lead time minimization and just in time
Managing JIT towards maturity
1997
1987
Gunasekaran & Lyu
Hall
1990
1997
Heiko
Hobbs
JIT applications for service Environments
1991
Inman & Mehra
JIT/TQM Quality Techniques in Indian Industries
The applicability of Just-in-Time manufacturing to small
manufacturing firms: an analysis
The road to successful implementation of just-in-time systems
2002
1996
Kumar & et al.
Lee
1995
Markham & McCar
Adaptable Kanban System helps Toyota maintains just-in-time
production
Toyota Production System: A practical approach to production
management
Putting the just-in-Time philosophy into Practice
JIT quality matrices for strategic planning and Implementation
1981
Monden
1983
Monden
1988
1995
O’Grady
Prasad
Implementation of JIT in Indian environment: A Delphi study
A comparative analysis and review of JIT implementation
research
The other side of JIT supply management
1993
1995
Prem et al.
Ramarapu et al.
1991
Romero
An evaluation of computer integrated just-in-time production
systems
Japanese manufacturing Techniques: Nine hidden lessons in
simplicity
Employee involvement in JIT success: The Eicher experience
The human aspects of JIT implementation
1990
Schniederjans & Kim
1982
Schonberger
1992
1995
Storhagen
Storhagen
Just-in-Time eliminates waste
International sourcing: Implications for just-in-time
manufacturing
Just-in-time: the evolution of a philosophy
1990
1989
Tesfay
Vickery
1996
Vokurka & Davis
JIT implementation practices
1996
Vora & Saraph
The impact of supplier proximity on JIT success: an informational
perspective
MRP II and JIT work together in plan and practice
The composition and scope of JIT
Defining critical elements in JIT implementation survey
JIT Manufacturing: A Survey of Implementations in Small and
Large U.S. Manufacturers
Impact of just-in-time inventory Impact of just-in-time inventory
An empirical investigation of JIT effectiveness: an organizational
perspective
Implementation of two JIT elements in small-sized manufacturing
firms
Customer and supplier linkages for small JIT manufacturing firms
JIT manufacturing: industry analysis and a methodology for
implementation
The relationship between JIT manufacturing and performance in
1996
Wafa & et al.
1990
1990
1995
1999
Wallace
White & Ruch
Zhu & Merdith
White et al.
Productivity
International Journal of Physical
Distribution & Logistics Management
Journal
Personnel Management
production and Inventory Management
Journal
Production and Inventory Management
Journal
Production and inventory Management
Journal
International Journal of Physical
Distribution and Logistics Management
Automation
Operations Management Review
Industrial Management and Data systems
Management Science
2006
1997
Kros et al.
Yasin et al.
Industrial Management & Data Systems
OMEGA
1995
Temponi & Pandya
1991
1993
Stamm & Golhar
Sohal et al.
1995
Lawrence & Hottenstein
Production &Inventory Management
Journal
Journal of Small Business Management
International Journal of Operations &
Production Management
Journal of Operations Management
Indian J.Sci.Res. 7 (1): 001-016, 2014
Operations Management Review
Production and Inventory Management
Journal
Production and inventory Management
Journal
Productivity
International Journal of Management
Production and Inventory Management
Journal
Industrial Engineering
Industrial Engineering and Management
Press, Atlanta
Nichols Publishing, New York, NY
International Journal of Operations and
Production Management
Productivity
International Journal of Operations &
Production Management
Production and Inventory Management
Journal
Production and Inventory Management
Journal
The Free Press, New York
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
Mexican plants affiliated with US companies
Total effectiveness of just-in-time system
1994
Karlsson
1995
Huson & Nanda
2007
Abdallah and Matsui
International Journal of Operations &
Production Management
Production & Inventory Management
Journal
POMS 18Th annual conference
2008
Eker & Pala
Journal of Economic and Social Research
2001
Cua et al.
Journal of Operations Management
1998
Upton
Exploring the Relationships Between Just-In-Time Technique and
Manufacturing Performance: Empirical Evidence From Selected
Nigerian Firms
The production performance benefits from JIT implementation
Impact Of JIT On Firms‘ Financial Performance Some Iranian
Evidence
Impact of JIT on organizational performance of U.S. firms
2009
Obamiro
International Journal of Operations &
Production Management
Manager
2001
2010
Fullerton & McWatters
Salehi et al.
1995
Chang & Lee
Relationship Between JIT and TQM: Practices and Performance
JIT implementation in Egyptian manufacturing firms: some
empirical evidence
1995
2005
Flynn et al.
Salaheldin
The impact of just-in-time manufacturing on firm performance in
the US
The relationship between JIT production and Manufacturing
strategy and their impact on JIT performance
The Effect of Competition, Just In Time Production and Total
Quality Management on the Use of Multiple Performance
Measures: An Empirical Study
Relationships between implementation of TQM, JIT, and TPM
and manufacturing performance
Just-in-time and performance measurement systems
RESEARCH METHODOLOGY
The purpose of this research, applied research is.
In this study, the method is descriptive, correlation field
branch, and in terms of time, a cross-sectional study is
considered. In this study , secondary data (data that have
already been produced and is available in Resources )
through library methods , including reading books,
documents and materials required have been collected
from internet. And this data is used to develop a
theoretical basis. The primary data were obtained (data
did not exist before, and they must be created by the
researcher), using a survey (questionnaire), to test the
research hypotheses. In the present study, the main
instrument for the assessment questionnaire, which is one
of the most common research tool, and direct method for
obtaining the research data. To measure the variables of
the two types of questionnaires were used. One is to
measure the time of production, and the other is intended
to measure organizational performance. The questionnaire
consisted of two parts, general questions and specific
questions, gender and work experience, consist of general
questions about it . The second part of the questionnaire is
related to specific questions. So that the JIT inventory
consists of 55 questions, which deals with the assessment
of these variables, namely: reducing installation and
Indian J.Sci.Res. 7 (1): 001-016, 2014
Journal of Operations Management
Global Journal of Management and
Business Research
International Journal of Production
Research
ACAD MANAGE J
International Journal of Operations &
Production Management
commissioning time, low inventory, transportation
providers timely, quality suppliers, workers, multitasking,
problem solving the small number of groups, education,
support programs, daily production, repetitive programs,
proactive protection, facility layout, simplicity in product
design, Kanban, pull System support, material
requirements planning system using the JIT, and the use
of accounting JIT. The questionnaire was designed, based
on the study (sakaribara et al; 1993). Similarly, the second
part of questionnaire, and consists of 6 questions. This
questionnaire is designed, according to (Lee & Choi;
2003). In this study, to assess the views and attitudes of
people about JIT and organizational performance, use of
the 5 point LIKERT scale, where 1 = very strongly
disagree, and 5 = extremely agree. To determine the
validity of the questionnaire used in this study, the content
validity. Also, for discriminate the validity, use factor
analysis. In this study, to determine the reliability of the
questionnaire, Cronbach's alpha coefficient for each scale
is calculated using the software SPSS, the value for
inventory JIT, 0.753 and the scale of organizational
performance, 0.822. Therefore, both the forms described
as having sufficient reliability. It should be mentioned
that the JIT inventory reliability analysis was based on all
dimensions, and the results can be seen in the fourth
quarter. Variables are presented in Table 2.
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
Table 2: Variables
Respondents
All groups of respondents.
Indicators
Organizational performance
Supervisors , engineers, production managers, production and warehouse
Supervisors , engineers, production managers, production and warehouse
Production engineers , product managers and warehouse
Production and Inventory Management , Quality Assurance Manager
Workers and supervisors
Supervisors , production engineering , production and warehouse managers , quality
assurance managers and workers
Workers , supervisors and managers training
Production and warehouse managers , supervisors and workers
Production and warehouse managers , supervisors and workers
Production supervisors and engineers.
Production and Inventory Management
Production and Inventory Management and Production Engineering
Production and inventory management , and production engineers , supervisors
Production and inventory management , and production engineers , supervisors
Production and Inventory Management , Cost Accounting
Production and Inventory Management , Cost Accounting
Reduced work time
Low inventory warehouse
Bhngan shipped by suppliers
Quality suppliers
Workers multitasking
Problem solving by small groups
The population of this study consists of all
supervisors, manufacturing engineers, product managers
and warehouse managers, assurance, accounting,
industrial workers and managers are trained during
assembly. Random sampling is used, the following
equation is used:
Table 3: The calculated number of samples
Society of
Supervisors
Production Engineering
Production and Inventory
Management
Assurance Manager
Cost Accounting
Workers
Education Leaders
Total
Number of
samples (n)
59
12
33
10
7
94
12
227
•
•
•
•
•
•
•
•
•
Indian J.Sci.Res. 7 (1): 001-016, 2014
JIT
The main hypothesis of the research is:
•
Since the p-value is not available, we consider it
equal to 0.5 and a confidence level of 0.95, and would
like to calculate the number of samples. It is worth
mentioning, since the population size is low, the manager
of assurance, cost accounting and management education,
the entire population was tested. It is mainly used for data
analysis and descriptive methods of statistical analysis,
especially analysis, correlation and regression analysis.
Education
Daily production support programs
Repetitive production
Preventive maintenance
The facility layout
Simply the product plan
Kanban
Pull system support
Using the MRP, in the JIT
Use of accounting, in the JIT
Research hypothesis in this paper is the
following statement:
•
•
Nz 2α
2 P (1 − p )
n=
z 2α
Nε 2 +
2 p (1 − p )
Variables
Organizational
performance
There is a significant relationship between
organizational performance and timely production.
Subsidiary research hypotheses:
There is a significant relationship between
organizational performance and reduce installation
and commissioning time.
There is a significant relationship between
organizational performance and low inventory.
There is a significant relationship between
organizational performance and multitasking
workers.
There is a significant relationship between
organizational performance and quality suppliers.
There is a significant relationship between problemsolving by small groups of organizational
performance.
There is a significant relationship between training
and organizational performance.
There is a significant relationship between
organizational performance and support daily
production schedules.
There is a significant relationship between
organizational performance and redundant programs.
There is a significant relationship between proactive
protection and organizational performance.
There is a significant relationship between
organizational performance and facility layout.
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
•
•
•
•
•
•
There is a significant relationship between transport
providers and timeliness of organizational
performance.
There is a significant relationship between
organizational performance and product design
simplicity.
There is a significant relationship between Kanban
and organizational performance.
There is a significant relationship between
organizational performances and to support the pull
system.
There is a significant relationship between the use of
JIT and MRP in organizational performance.
There is a significant relationship between the use of
JIT accounting and organizational performance.
Analysis of data
Analysis of data for this study was conducted in
the four phases. Descriptive statistics are shown in the
first phase. In the second phase on each variable, factor
analysis was conducted to determine whether or not the
differential validity of the instrument variables. Phase III
is in the instrument validity. In the fourth phase,
regression analysis is used to test the hypotheses.
Phase I: Descriptive statistics
In the Table 4, standard deviation and correlation
values are presented.
Table 4: Table of descriptive statistics and correlations
between variables
JIT
Organizational performance
Mean
35.3
73.3
SD
0.364
0.746
Timely production
The study of this table shows that the variables are
correlated, and since these coefficients are positive, we
can conclude that the relationship is directly between
them. For example, organizational performance and
productivity significantly Hmbsthand together.
(r = 0.489,
P ≤ 0.01)
Phase II: Factor Analysis
At this stage, all the instruments were subjected
to factor analysis.
JIT
55-item questionnaire at the time of JIT factor
analysis using principal component (Component
principal) was used to determine the dimensions of 16 by
(sakaribara et al; 1993) have been suggested or not they
are repeated again. In order to obtain the best
representation of the data were performed by one rotation.
Small number of groups, education, support programs,
daily production, repetitive programs, proactive
protection, facility layout, product design simplicity,
Kanban, supporting the pull system, using the JIT MRP
and JIT- accounting was used.
Table 5: Results from factor analysis on the JIT questionnaire
Weight of factor
Questions
First factor : reduced installation and commissioning
793
1 - We are an attempt to reduce the time to set up and install equipment and machinery .
637
2 - We set up and installation of machinery, equipment and machinery as we do outside of work time .
649
3 - Time commissioning and installation of equipment and machinery in our factory is low.
649
4 - my colleagues to bring down the startup time and the number of installations and machinery , trains .
The second factor : low inventory
564
5 - Size -up of inventory in our factory in Stowe
794
6 - We 're very much trying to inventory the plant down .
561
7 - We have a tendency to do so production planning and inventory volume is high .
The third factor : Timely transportation suppliers
533
8 - retailers , the goods we deliver on time
672
9 - Many of our customers are receiving the cargo area on a daily basis .
793
10 - suppliers we work with them we are known for the quality of the product .
637
11 - We will establish long-term relationships with our suppliers .
The fourth factor : quality suppliers
649
12 - We try to establish long-term relationships with our suppliers .
649
13 - suppliers we work with , we are actively involved in new product development process .
564
14 - Quality is the most important criteria in choosing a supplier .
794
15 - We have to rely on a limited number of suppliers of quality .
The fifth factor : multitasking workers
Indian J.Sci.Res. 7 (1): 001-016, 2014
0.489
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
561
16 - Usually I 'm starting device
533
17 - Investigation and output control myself, I do my job
561
18 - I have the ability to perform several different tasks
561
19 - If a device fails , I get unemployed
The sixth factor : the problem of the low number of groups
790
20 - In the process of solving problems, making decisions , try to get the opinions of others
554
21 - The Factory Team is used to solve the problem .
869
22 - In the past three years , many problems have been solved through small groups meetings
Factor VII: Education
0.877
23 - Workers in the manufacturing process of being trained to perform numerous tasks
0.787
24 - workers to learn new skills , are encouraged
0.765
25 - skill level in our factory is small compared to other similar companies
0.83
- 26 workers in our factory with high technical capability
Factor VIII: Daily production support programs
0.908
27 - the end result of quality problems in production lines , production plans are designed to compensate for
the backwardness there is a possibility
0.726
28 - Usually , the daily production rate as production is scheduled
0.715
29 - In production applications , or the failure to stop the machinery is not considered
Factor IX: iterative programs
0.799
30 - hourly and daily production schedule of a fixed combination product repeats
0.714
31 - Factory production schedule of a day varies
0.824
32 - Our daily production models will change
Factor I : preventive conservation
0.716
33 - Sort processes and systems so that we are close to each other.
0.724
34 - we are merely a part of their daily time devoted to preventive maintenance will
0.772
35 - We kept a good strategy to achieve quality and production plans , we know
0.747
36 - Our daily maintenance activities are to perform a specific shift.
0.793
37 - In comparison with other similar plants in our factory for repairs have closed a long time
Factor XI : Sort of equipment
0.572
38 - Sort processes and systems so that we are close to each other.
0.649
39 - Plant Our manufacturing plant is being organized by
0.591
40 - We do not use for handling materials of pulp
Twelve factors : ease of product design
0.760
41 - our design process , we try to only list the specifications that are needed
0.459
42 - our emphasis components designed to minimize these components
0.780
43 - We 're not at all concerned about the number of components of a complete system
Factor XIII : Kanban
0.428
44 - Ask vendors instead of filling our cartoons should fill Kanban supply goods without the need for a
separate package , Kanban containers are delivered to us
Fourteen factors : protection Pull System
0.793
45 - In order to increase the efficiency of process equipment layout emphasize effective
0.512
46 - Workers are allowed if found quality problems , to stop production
0.760
47 - Our quality control system for the purchaser 's request (pull system) , we use
0.97
48 - production control in the hands of the workers.
Fifteen factors : the use of MRP at the time of production
0.793
49 - rather than on the work order system purchase request we produce .
0.637
50 - We MRP only major programs like the product we use .
0.649
51 - In order to keep the information factory extensively purchase order system we use .
Sixteen factors : the use of accounting in JIT
0.572
52 - We work order accounting system we use , the way in which costs are determined based on the cost per
production packages .
0.724
53 - We measure time , we use direct labor standards .
0.615
54 - We often deviate from the fee will be monitored .
Kaiser-Meyer-Olkin Value: 0.900; df: 15
Bartlett significance value: 0.000; x2-value: 1652.695
As Table 5 shows, the KMO statistic is
significant and can thus be concluded that the sample is
adequate for factor analysis.
Indian J.Sci.Res. 7 (1): 001-016, 2014
Phase III: Reliability of measurement instruments
To determine the internal consistency of each of
the measurement tools (questionnaires) Cronbach's alpha
coefficient was used. This coefficient is calculated for all
questionnaires and dimensions of each variable are
presented in Table 6.
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
Table 6: Measuring reliability coefficients
The reliability (∝)
0.753
0.758
0.703
0.89
0.761
0.758
0.921
0.835
0.71
0.712
0.736
0.748
0.815
0.815
0.712
0.798
0.709
0.822
Tools
1 - Production Update
1.1 - Reduction of installation and commissioning
1-2 - low inventory
1-3 - Transportation timeliness of suppliers
1-4 - quality suppliers
1-5 - Workers multitasking
1-6 - Solving the small number of groups.
1-7 - Education
1-8 - Daily production support programs
1-9 - repeat programs
1-10 - Preventive Conservation
1-11 - Layout of equipment
1-12 - Simply the product plan
1-13 - Kanban
1-14 - support the pull system
1-15 - Using in the JIT MRP
1-16 - Using JIT accounting COMMITMENT
2 - Organizational Performance
What is clear from Table 6, the coefficient alpha
greater than 0.7 in all the questionnaires and the
questionnaires have good internal consistency.
Consequently, the hypothesis that is he lower the
reliability of the questionnaires will be rejected.
Phase IV: Regression analysis and hypothesis testing
In order to test the hypothesis of series of
regression and ANOVA techniques were used. To study
the effect of the organizational performance of linear
regression was used during production. In both methods,
demographic variables, "gender", "work experience" and
"organization" are considered as control variables and
then "matched" observations on these variables, the effect
of independent variables on the dependent variable to be
measured .
Test requirements for regression
Regression technique depends on the particular
circumstances. Therefore, before using this test, we
examined the conditions necessary for its use. These
conditions are:
Normal distribution
Therefore, tests Shaipro - Wilkie and
Kolomogrof - Smirnov test were used. In this case, the
null hypothesis is:
H0: Distribution is the normal distribution
H1: The distribution is not normal distribution
The test was timed for organizational
performance and productivity. SPSS output is shown in
Table 7.
Indian J.Sci.Res. 7 (1): 001-016, 2014
Table 7: SPSS output in normal test data
Sig 0.97
Sig 0.63
Shapiro-Wilk
Statistics 0.999
Statistics 0.997
JIT
Organizational
performance
Since the significance level, both variables is
greater than 0.05, the null hypothesis cannot be ruled out
based on normal distributions of variables.
Homogeneity of variances
"Levene" statistic was used to test these
conditions. Null hypothesis in this case is:
H0: Variances are the same
H1: Variances are not equal
Table 8: SPSS output of the test of homogeneity of
variances
Levene stat
61.072
df1
10
df2
56
Sig
0.943
Because of the great significance level, the null
hypothesis is not rejected, then this condition is also true
regression.
Linearity
Since the correlation tests are strongly influenced
by the linearity regression relationship between the
dependent and independent variables, the linearity test is
very important. ANOVA was used in order relevant tests.
H0: The relationship is linear.
H1: The relationship is not linear.
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
Since the relevant statistics 8.55 and a
significance level of 0.64, the null hypothesis is not
rejected. Therefore, the relationship between the
independent and dependent variables is linear.
and several predictor variables to be studied. In this study
predicting organizational performance based on
regression techniques are used during production.
Independence of Errors
The Multi co linearity
Theory Test
Multi co linearity refers to a situation in which
there is a relationship between the independent variables
is highly correlated with each other. In this case, there is
overlap between the independent variables and the
dependent variable explained by the regression
coefficient, the model is unrealistic. To determine multi
co linearity the VIF coefficients are used. If this ratio is
greater than 5, multi co linearity is a serious problem.
Statistics calculated in this study is the first, and so there
is no problem of multi co linearity.
Regression
The main hypothesis: "There is a relationship
between the production of timely and organizational
performance."
To test this hypothesis, first, to identify variables
that entered the model as a control variable. Evaluate the
significance of these variables showed any significant
relationship with the dependent variable is the time of
production. In other words, the effect of this variable at
the time of production employees in the organization has
not studied. Table 9 shows the regression coefficients are
calculated.
Regression analysis includes techniques that can
be based on the relationship between an outcome variable
Table 9: Regression coefficients related to the production of timely and organizational performance
Variable
Beta
Sex
0.061
History
0.527
Organization
-0.306
Reduce installation and commissioning time
0.157
Low inventory
0.123
Workers multitasking
0.674
Quality suppliers
-0.01
Solving the low number of groups
-159
Education
0.168
Daily production support programs
0.203
Repeated applications
0.103
Preventive Conservation
0.412
The facility layout
0.021
Timely transportation providers
0.43
Simply the product plan
0.041
Kanban
0.215
Supporting the pull system
0.341
Using the MRP, in the JIT
0.523
Use of accounting, in the JIT
0.238
Dependent variable: JIT
As Table 6 shows that none of the demographic
variables are correlated with the JIT. In addition to present
better Vakary; all dimension of JIT came to the model.
Coefficients indicate that significant levels of production
during the next 16 only "preventive protection", "facility
layout" and "use of accounting systems in JIT" impacting
on organizational performance. During production to check
whether or not the overall impact on organizational
Indian J.Sci.Res. 7 (1): 001-016, 2014
T
404
1.83
-1.058
-1.144
721
4.408
-4.999
-88
701
2.107
0.108
4.504
3.999
1.208
0.0761
0.104
0.231
1.165
4.408
Sig
0.688
0.072
0.294
0.257
0.474
0.000
0.000
0.000
0.000
0.000
0.000
0.07
0.34
0.000
0.048
0.000
0.000
0.031
0.713
performance and regression analysis were used. You'll see
the results of this analysis in Table 10.
Table 10: Regression analysis of organizational
performance and timely production
Variable
Sex
History
Organization
Timely production
Beta
0.061
0.527
-0.306
0.489
T
0.409
1.83
-1.058
8.764
Sig
688
0.72
0.294
0.000
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
As indicated in Table 10 shows the regression
coefficients between a timely production and
organizational performance is significant because the
significance level is small (<0/05 ), the null hypothesis
regarding Be rejected. Also, since this coefficient is
positive, direct relationship between organizational
performance and the timely production. This means that
when increasing production, organizational performance
also increases.
Analysis of research hypotheses
• The main hypothesis examined the relationship between
organizational performance and the timely production
field. The purpose of this hypothesis was that the plan
produced when the organization how it affects
organizational performance. The results of the regression
coefficients obtained from 0.489 positive significant
relationship between the two variables confirms. In fact,
during production by reducing storage costs and increase
performance improvement organization. Due to the
production of large dimensions, the recognition of the
significant aspects of this relationship seems to have
helped a lot of help. Therefore, the following hypotheses
were proposed and tested:
• The second hypothesis on the relationship between
organizational performance and reduce installation and
commissioning time is examined. Regression coefficient of
0.157, indicating a direct correlation between the two
variables. However, the significance level for testing the
null hypothesis 0.257 is larger than 0.05 under the null
hypothesis that there is no relationship between reduced
installation and commissioning and performance cannot be
denied.
• The third hypothesis of an association between low
inventory and organizational performance is examined.
Regression coefficient of 0.123, indicating a direct
correlation between the two variables. However, the
significance level for testing the null hypothesis 0.474 is
larger than 0/05 under the null hypothesis that there is no
relationship between inventory and organizational
performance can be reduced.
• The fourth hypothesis on relationship between
multitasking and organizational performance is examined.
Regression coefficient of 0.674, indicating a strong
correlation between the two variables. Since the
significance level for testing the null hypothesis 0.000 is
less than 0.05 under the null hypothesis that there is no
Indian J.Sci.Res. 7 (1): 001-016, 2014
relationship between organizational performance and
multitasking workers will be rejected. This indicates that
multi-skilled workers can gain by reducing production time
and holistic approaches to improve organizational
performance.
• The fifth hypothesis of the relationship between the
quality level of suppliers and organizational performance is
examined. -0.01 regression coefficient indicates a weak
negative correlation between the two variables. Since the
significance level for testing the null hypothesis 0.000 is
less than 0.05 under the null hypothesis that there is no
relationship between the quality and performance of
suppliers and will be rejected.
• The sixth hypothesis of the relationship between
problem-solving by small groups and organizational
performance is examined. -0.159 regression coefficient
indicates a weak negative correlation between the two
variables. Since the significance level for testing the null
hypothesis 0.000 is less than 0.05 under the null hypothesis
that there is no relationship between the 1.0 problemsolving by small groups and organizational performance
and will be rejected.
• Seven hypotheses on the relationship between training
and organizational performance is examined. Regression
coefficient of -0.168, indicates a weak correlation between
the two variables. Since the significance level for testing
the null hypothesis 0.000 is less than 0.05 under the null
hypothesis that there is no relationship between the training
and organizational performance and will be rejected.
• Eight hypotheses on the relationship between daily
production support for programs and organizational
performance is examined. Regression coefficient of 0.203,
indicating a weak correlation between the two variables.
Since the significance level for testing the null hypothesis
0.000 is less than 0.05 under the null hypothesis that there
is no relationship between the daily production support for
programs and organizational performance and will be
rejected.
• Ninth hypothesis of association between repeated
planning and organizational performance is examined.
Regression coefficient of 0.103, indicating a weak
correlation between the two variables. Since the
significance level for testing the null hypothesis 0/000 is
less than 0.05 under the null hypothesis that there is no
relationship between repeated planning and organizational
performance will be rejected.
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
• Tent hypothesis relationship of relation between
proactive protection and organizational performance is
examined. Regression coefficient of 0.412, indicating a
strong correlation between the two variables. Since the
significance level for testing the null hypothesis 0.000 is
less than 0.05 under the null hypothesis that there is no
relationship
between
proactive
protection
and
organizational performance will be rejected.
• The eleventh hypothesis examined the relationship
between organizational performance and the facility
layout. The regression coefficient of 0.021, indicating a
strong correlation between the two variables. Since the
significance level for testing the null hypothesis 0.34 is
larger than 0.05 under the null hypothesis that there is no
relationship between facility layout and organization of the
branch cannot be denied .
• Twelve hypotheses on the relationship between
transportation providers and timeliness of organizational
performance is examined. Regression coefficient 0.43,
indicating a strong correlation between the two variables.
Since the significance level for testing the null hypothesis
0.000 is less than 0.05 under the null hypothesis that there
is no relationship between the suppliers and the timely
performance of transport organization will be rejected.
• Thirteen hypotheses on the relationship between product
design simplicity and organizational performance is
examined. The regression coefficient of 0.041, indicating a
strong correlation between the two variables. Since the
significance level for testing the null hypothesis 0.000 is
less than 0.05 under the null hypothesis that there is no
relationship between the product design simplicity and
organizational performance will be rejected.
• Fourteen hypothesis examines the relationship between
Kanban and organizational performance. Regression
coefficient of 0.215, indicating a strong correlation
between the two variables. Since the significance level for
testing the null hypothesis 0.000 is less than 0.05 under the
null hypothesis that there is no relationship between
Kanban and organizational performance may be rejected.
• support the hypothesis that the relationship between the
fifteenth pull system and organizational performance is
examined. Regression coefficient of 0.341 regressions
indicates a strong correlation between the two variables.
Since the significance level for testing the null hypothesis
0.000 is less than 0.05 under the null hypothesis that there
Indian J.Sci.Res. 7 (1): 001-016, 2014
is no relationship between the pull system support and
organizational performance is rejected.
• XVI hypothesis of association between the use of JIT and
MRP in organizational performance is examined.
Regression coefficient of 0.523, indicating a strong
correlation between the two variables. Since the
significance level for testing the null hypothesis 0.031 is
smaller than 0.05, assuming that there is no relationship
between the use of JIT and MRP in organizational
performance may be rejected.
• Seventeenth hypothesis of association between the use of
JIT accounting and organizational performance is
examined. Regression coefficient of 0.238, indicating a
strong correlation between the two variables. Since the
significance level for testing the null hypothesis 0.731 is
larger than 0.05 under the null hypothesis that there is no
relationship between the use of JIT accounting and
organizational performance cannot be rejected.
CONCLUSION AND RECOMMENDATION
In the present study we have tried to update the
relationship between production and organizational
performance, reducing installation and commissioning
time, low inventory, transportation providers timely,
quality suppliers, workers, multitasking, problem solving,
the small number of groups, training, advocacy daily
production of plans, programs, repetitive, proactive
protection, facility layout, product design simplicity,
Kanban, support Pull system, using the JIT and MRP
accounting uses the JIT in Iran Khodro corporation is
measured. As noted earlier, this study examined the
relationship between organizational performance and the
timely production field. The purpose of this hypothesis was
that the plan produced when the organization how it affects
organizational performance. The results of the regression
coefficients obtained from 0.489 positive significant
relationship between the two variables confirms. In fact,
during production by reducing storage costs and increase
performance improvement organization. Based on the
findings of the research proposal follows:
1 - Use KBES the production line to be smart and increase
efficiency.
2 - KPO used in the production process of the automotive
assembly line 2
3 - The use of virtual teams in order to increase the speed
of data transfer in production system update.
RAHMANI AND NAYEBI: EFFECT OF JIT IMPLEMENTATION IN IRAN AUTOMOTIVE INDUSTRY
4 - Use Synkrvn and EDI to speed in order to avoid having
an existing supplier to the warehouse
Production and Inventory Management Journal.
32: 56-60.
5 - Use Coordinator to establish greater coordination in the
production line
Billesbach, T.J.; 1991. A study of the implementation of
Just in- Time in the United States. Production and
Inventory Management. 32( 3): 1-4.
6 - Continuous auditing to prevent deviations
7 - Change agent in the management of large organizations
for having experienced
8 - Using the Standard of Training Management (ISO
10015)
9 - Use of performance measurement systems (PMS)
10 - Capitalizing on learning opportunities to improve
performance
11 - Removing the barriers to integration and innovative
ideas on organizational performance
12 - Efficient allocation of resources and competition
between units.
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