OCTOBER 19-20, 2012 - YMCA University of Science & Technology

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
JIT SUPPLY CHAIN MANAGEMENT: AN INTRODUCTION
O P Mishra 1 *, Vikas Kumar 1 , Dixit Garg 2
1 Department of Mechanical Engineering, YMCA University of Science and Technology, Faridabad 121006, India
2 Department of Mechanical Engineering, National Institute of Technology, Kurkshetra ,India
e-mail: opmishra.m@rediffmail.com
Abstract
The JIT supply chain for any firm is an effective and efficient management tool. The planning, control, and coordination
of all activities in the supply chain to move sufficient material supplies from the source (e.g., overseas or
local central distributors) to the final customers on real time. The activities must be performed when needed at the
right time, not earlier or later in the supply chain. The paper deals with the benefits of the JIT supply chain and risk
associated with. The paper is all about the basic concept behind JIT and is supplemented with a case study of supply
chain failure due to break down of a leading car manufacturing company. It is understood that though benefits of JIT
supply chain are obvious, but its implementation in firm is not like a plug in and use.
Key words: JIT supply chain, Management tools, risk, supply chain Failure.
1. Introduction
A 'supply chain’ is the system of organizations, people, technology, activities, information and resources involved in
moving a product or service from supplier to customer. Some times goods enter the supply chain at any point where
residual value is recyclable. Supply chains link activities transform natural resources, raw materials and components
into a finished product that is delivered to the end customer (Kim, 2003). In sophisticated supply chain systems, used
products may re- chains. Sell One- Make One’ (SOMO) is the philosophy of Nissan and Toyota, which stress on lean
production. Similar is the philosophy of General Motors and such like other automobiles companies.. The JIT supply
chain for any firm as effective and efficient management, planning, control, and co-ordination of all activities in the
supply chain to move sufficient material supplies from the source (e.g., overseas or local central distributors to the
final customers (Yasin et.al. 2001). In short, we define JIT supply chain as value added in performing activities of
moving materials supplies from the right source to the point of consumption or use, at the right time, and at reduced
cost in order to enhance the quality of the service given by the product. A JIT supply chain is a strategy that produces
just what and how much is needed, when it is needed, and where it is needed (Banerjee, 2007).
2. Literature review
Steele (2000) expresses just in time supply chain management is the management of the flow of material starting
from procurement, production processes, ware housing and distribution on real time. He has linked the various firms
together in a chain for delivering customer value. Banerjee (2007) expresses on profitability through JIT process in
the supply chain. The conceptual model that integrates links between three sets of variables, i.e. JIT driven processes
in the supply chain, improvement in production processes and financial performance indicators. Kumar V (2004)
propose a framework that includes qualitative factors concerning TQM, material flow decisions, supply chain
uncertainty and manufacturing practices to ascertain JIT supply chain working. Zimmer (2002) has discussed about
Coordinating producer and supplier is one of the main issues of supply chain management and to make it more
responsive the activities are to be done in JIT environment. Ohno, (2011) deals with a supply chain system where the
production or manufacturing facility operates under a just-in-time (JIT) environment, and the facility consists of raw
material suppliers, manufacturers, and retailers where inventory of raw materials, work-in-process, and finished
goods are involved, respectively. Cost reduction, waste elimination, low inventories, flexible manufacturing,
efficient transportation, quick delivery etc are some of the important aspect of the JIT supply chain found in various
literatures (Primrose 1991, Kim 2003, Yasin et.al.2001, Zimmer 2002,)
2.1 Attributes of the JIT supply chain management
The following section covers the three basic attributes related to the JIT supply chain management. The first
attributes is taken as JIT production. JIT production consists of thee separate divisions. The first is the material
system within the JIT which flows through out the chain and which is visible. The second branch of JIT production is
production planning prerequisites.TQM, and Kaizen effects are two most important prerequisite of JIT production It
is also found that without JIT production just in time supply chain even cannot be thought up. The second attribute is
taken as product delivery and logistics which will be explained in subsequent paragraph. The third attribute is
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