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The just-in-time philosophy: A literature review

a a
DAMODAR Y. GOLHAR & CAROL LEE STAMM
a
Department of Management, Haworth College of Business, Western Michigan University,
Kalamazoo, MI, 49008, USA
Published online: 27 Apr 2007.

To cite this article: DAMODAR Y. GOLHAR & CAROL LEE STAMM (1991) The just-in-time philosophy: A literature review,
International Journal of Production Research, 29:4, 657-676

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 INT. J. PROD. RES.; 1991, VOL. 29, No.4, 657-676

The just-in-time philosophy: A literature review

DAMODAR Y. GOLHARt and CAROL LEE STAMM

The just-in-time (lIT) literature is reviewed to identify 211 refereed articles. To

examine the significance of JIT implementation, global productivity comparison
articles are summarized. The JIT, MRP and OPT comparisons research is
examined.Classification of the lIT-practices-articlesaccording to the topic areas is
presented. Critical variables, discussed in the JIT implementationin manufacturing
articles, are classified according to the four basic tenets of the lIT philosophy.
Eleven critical variables are "identified for the elimination of waste tenet. For
employeeinvolvement in decision-making,supplier participation and total quality
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control tenets,five, ten, and eight criticalvariables,respectively, are listed. To ensure

a comprehensive review of the JIT literature, an extensive bibliography and some
reviews of books on the JIT philosophyare provided. Future researchdirectionsare
discussed.

1. Introduction
An extensive literature search was conducted to identify over 860 just-in-time (JIT)
articles published in professional journals since 1970. With the exception of the
Harvard Business Review, articles published in non-refereed journals were then
eliminated from further investigation. This screening process led to the identification of
211 research papers for further analysis. It should also be noted that case studies were
not considered unless the cases were included as examples in already selected studies. A
topic-specific classification of the JIT articles is provided in the bibliography. The
bibliography also contains a list of books on the JIT philosophy. Articles and books
cited in the manuscript are preceded by an asterisk (*).
The first article on the JIT implementation in manufacturing appeared in the 1970s
(Sugimori et al. 1977). Since then, hundreds of JIT papers have been published in
professional journals. This body of literature describes the JIT philosophy and its
implementation in manufacturing. It contains conceptual and empirical studies,
simulation and mathematical models, as well as case studies. Two general review
articles have attempted to integrate the reported research in this field (1m 1989, Sohal
et al. 1989). However, these reviews cite only a limited number of refereed journal
publications and do not provide a framework for classifying the JIT literature. The
reviews also fail to link critical variables with the basic tenets of the JIT philosophy (i.e.
elimination of waste, employee involvement in decision-making, supplier participation
and total quality control). Two topic-specific reviews have been published on cellular
manufacturing (Huang and Houck 1985) and worker cross-training (Treleven 1989).
Because of their narrow topical focus, these review articles do not integrate the
developments in these fields with overall JIT implementation.

Revision received October 1990.

t Department of Management,Haworth Collegeof Business, Western Michigan University,
Kalamazoo, MI 49008, USA.

0020--7543/91 $3'00 © 1991 Taylor & Francis Ltd .

 658 D. Y. Golhar and C. L. Stamm

Thus, there is a need for a comprehensive review that integrates developments in

the JIT field. The major aims of the present study are to:
(1) classify articles according to the JIT topic areas (that include implementation in
manufacturing, kanban, purchasing, and human resource management);
(2) identify the critical variables associated with the tenets of the JIT philosophy;
and
(3) provide direction for further research.
In addition, the role of JIT philosophy in global productivity is examined. Also, JIT,
material requirements planning (MRP), and optimized production technology (OPT)
as inventory systems are compared.
First, we explore the role of the JlT philosophy in global productivity comparisons.
Particularly, the role of culture in successful JlT implementation is examined. Second,
articles that treat JlT as an inventory model and compare its performance in relation to
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MRP, and OPT are reviewed. Then, we classify the JlT practices literature into broader
categories that include implementation in manufacturing, kanban, human resource
management, purchasing and quality. Articles in the JIT implementation category are
further analysed to identify critical variables associated with the basic tenets of the JIT
philosophy. Development of these variables over time is also examined.

2. Global productivity comparison

Three articles (Wheelwright 1981, Abernathy et al. 1981, Sakurai and Huang 1984)
attribute the success of Japanese manufacturing firms to the willingness of managers to
pay close attention to detail. For example, the production related issues (workers,
quality control and product assurance, and production planning and materials
control) are treated as strategic factors by Japanese managers, while managers in
Western countries consider these issues as operational factors. According to these
researchers, the strategic approach has caused Japanese management to take a long-
term view of business and this has been instrumental in fostering the evaluation of the
JIT philosophy. Productivity advantages of Japanese industries suggest that JIT
implementation leads to profitability. Cusumano (1988) gives an historic account of
developments in the Japanese automotive industry and examines the impact of JIT
implementation on solidifying productivity gains. According to Suzaki (1985), 70% of
the productivity improvements in the Japanese automotive industry can be attributed
to operational improvements and managerial systems. During an American Produc-
tion and Inventory Control Society (APICS) study mission of Japanese manufacturing
industries, Burnham (1985) observed that in order to be competitive, industries must
focus on workforce involvement in decision-making and management commitment to
viewing production related issues as strategic instead of operational.
Many researchers argue that culture has been critical to the successful JIT
implementation by Japanese firms (Johnson and Ouchi 1974, Cooper 1984,
Manoochehri 1985, Musselwhite 1987, Gettel-Riehl and Kleiner 1987). These authors
classify Japan's cultural issues into two broad categories: worker related and
management related. Japanese workers are loyal, flexible, well educated, co-operative
and willing to work long hours. Key elements of the Japanese management approach
are: life-time employment, consensus and bottom-up approach to decision-making,
respect for workers, seniority-based pay scale, salaried employees, and a paternalistic
approach toward workers. This distinction between worker and managerial cultural
issues is helpful because Japanese management approaches have been imported
 The just-in-time philosophy 659

successfully by other cultures. For example, Japanese companies with subsidiaries in

the USA are providing the same working environment as in Japan and getting US
workers involved in implementing the JIT philosophy (Johnson and Ouchi 1974). Also,
other US companies have reported success on this dimension (Wheelwright 1981,
Sakurai and Huang 1984, Suzaki 1985, and Cusumano 1988). These studies further
suggest that the Japanese management approach may be far more important than
worker-related cultural issues in successfully implementing the JIT philosophy. Thus,
for a successful JIT implementation in the West, a strategic view of the production-
related issues and employee-oriented Japanese management approach seem critical.

3. JITjMRPjOPT comparison
Comparisons between JIT, MRP and OPT as inventory control systems have been
presented in the literature (for detailed discussion of these systems, see Aggarwal and
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Aggarwal (1985)). Grunwald et al. (1989)argue that JIT, MRP and OPT are mutually
exclusive inventory control systems. In a repetitive manufacturing environment with
moderate product variety, kanban (an inventory control system in JIT) is found to be
effectivein drastically reducing inventory and simplifying planning and control. On the
other hand, in a job-shop environment with large product variety, MRP improves
customer service and moderately reduces inventory. However, in a complex produc-
tion environment, OPT is preferred to MRP or JIT (Schonberger 1983,Grunwald et al.
1989). However, these arguments are refuted by Plenert and Best (1986)who claim that
both kanban and OPT are more productive than MRP. These studies suggest that the
selection of an ideal inventory control system is situation specific.
According to the simulation and mathematical studies on inventory system
comparisons, the manufacturing environment is most crucial in reducing inventory. In
particular, levelled production, reduced set-up time and lot sizes are most effective in
reducing inventory and improving customer-service levels (Krajewski et al. 1987,
Lambrecht and Decaluwe 1988, Luss 1989, Lee 1989). With kanban, the JIT
philosophy focuses on simplifying the production process and finding ways to reduce
set-up times and lot sizes. When compared to MRP and OPT, kanban provides an
appropriate manufacturing environment for effectively controlling inventory.
Another critical factor in successful implementation of an inventory system is
human involvement. Since workers are responsible for making the kanban system
work, researchers find it advantageous because it is relatively simple and easy to
implement (Rice and Yoshikawa 1982,Aggarwal 1985,Aggarwal and Aggarwal 1985).
MRP, on the other hand, has more human involvement problems because employees
are more excluded from decision-making and fail to see how their work contributes to
reduction in inventory. OPT requires managers to make procedural and work method
changes prior to its implementation. These changes increase employee involvement. As
a result, OPT has fewer employee problems in controlling inventory than MRP.
The articles cited above focus on contrasting kanban, MRP and OPT. However,
some studies argue that kanban and MRP systems are complementary (Gelders and
Van Wassenhove 1985, Loebe11986, Discenza and McFadden 1988, Walbank 1988,
Karmarkar 1989. According to these researchers, the strength of MRP is in long-term
planning and scheduling, while kanban is better at daily operations, controlling
production by reducing inventory, and providing visible controls. Thus, integration of
MRP and kanban would allow a manufacturer to improve productivity and customer-
service level.
 660 D. Y. Golhar and C. L. Stamm

4. JIT practices
In our opinion, success of the JlT philosophy depends on the implementation of
four basic tenets:
[a] elimination of waste;
[b] employee involvement in decision-making;
[ c] supplier participation; and
[d] total quality control.
For a detailed discussion of some ofthe tenets and the associated variables, see Hannah
1987), Schonberger (1986), Sugimori et al. (1977) and Warne (1986). Of the 211 articles
examined in this review, 180 are about the JIT practices. The four JlT tenets were used
as a framework for classifying the 180 JlT-practices articles. These articles are classified
based on topic focus (see Table 1). Note that in Table 1 the articles listed .under the
implementation in manufacturing category deal with two or more tenets of the JlT
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philosophy. Kanban, cellular manufacturing and accounting topics belong to the

elimination-of-waste tenet. The remaining three tenets, namely, employee involvement
in decision-making, supplier participation and total quality control are represented by
human resource management, purchasing and quality topics, respectively. The articles
in each category are then classified based on the type of study: conceptual, empirical,
simulation or mathematical models, identified in the bibliography as (C), (E), (S)
and (M), respectively.
It can be seen from Table 1 that the major focus of the JlT research has been on
implementation in manufacturing, purchasing and kanban. Fewer articles explore
cellular manufacturing, accounting, human resource management, and quality topics.
Most of the articles on these topics are conceptual and have appeared only recently.
The following discussion is undertaken to integrate and critique the research reported
on each JIT topic in Table 1.

4.1. Implementation in manufacturing

As noted earlier, implementation-in-manufacturing articles are broader in scope
and examine the role of the basic tenets of the JIT philosophy in manufacturing. First,
we identify critical variables from conceptual articles. These variables are then
classified according to the basic tenets of the JlT philosophy. Development of these
variables over time is presented next. Finally, we review the empirical, simulation and
mathematical studies reported in this category.
The majority of the articles (50) on implementation in manufacturing are
conceptual. Further scrutiny reveals that 46 of these articles discuss variables
associated with the implementation of the JlT philosophy. Unfortunately, there is little
consensus among researchers regarding the relative importance of these variables in
JIT implementation. Hence, there is a need to identify the critical variables associated
with each of the basic tenets of the JlT philosophy. For the purposes of our study, the
frequency of citation was used as the measure of importance of these variables.
However, given the ambiguity surrounding the terminology used by different
researchers, it was necessary for the authors to use their best judgement in classifying
and grouping the variables discussed in the articles. Therefore, some of the variables
may not be mutually exclusive.
Each conceptual study on JlT implementation was reviewed to identify tenet-
specific critical variables. The variables discussed in the 46 articles were tallied
(variables mentioned at least three times were considered) and are grouped by JlT tenet
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Employee
involvement Total
Elimination of in Supplier quality
waste decision-making participation control
~
<1:>
Implementation
In
......
s::
manufacturing Human ...'"
Type of (more than Cellular resource S'
I

study one tenet) Kanban manufacturing Accounting management Purchasing Qu ality §'.
<1:>

Conceptual <C) 50 15 4 6 10 18 4 '1::l

::-
Emp irical <E) 10 1 11 ~
Simulation <S) 6 10 1 2 '"c
2 '1::l
Math models <M) 6 18 5 ::-
~

"Type of article is indicated in the Bibliography by < ) .

Table 1. Classification of lIT-practices articles."

0'1
0\
-
 662 D. Y. Golhar and C. L. Stamm

in Table 2. For each of these articles, the critical variables discussed therein are
identified in the bibliography by the basic JIT tenet and the variable number. For
example, consider an article with an index [B (1,2)]. Index [B] refers to the employee
participation in decision-making tenet. The critical variables 1 and 2 discussed in this
article are cross-training of workers and group decision-making, respectively. This
indexing procedure allows the reader to identify articles in the bibliography that
discuss specific variables. In order to examine the evolution of these variables over time,
the articles have been sorted by publication date (1975-1980, 1981-1985 and 1986-
1990).

1975-80 1981-85 1986-90 Total

[A] Elimination of waste

l. Kanban 2 13 22 37
2. Reduction in waste 1 7 26 34
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3. Reduced set-up times 0 9 21 30

4. Stable production 1 9 16 26
5. U-cells 0 7 18 25
6. Reduced lot size 0 5 17 22
7. Group technology 0 7 10 17
8. Reduced lead-time 0 5 12 17
9. Automation 0 3 5 8
10. One piece flow production 1 3 4 8
II. Right tools at right place 0 2 2 4
[8] Employee participation in decision-making
l. Cross-training 1 8 17 26
2. Group decision-making 0 6 14 20
3. Problem solving network 1 4 3 8
4. Employee suggestions 1 2 3 6
5. Life-long employment I 2 2 5
[C] Supplier participation
I. Frequent and reliable deliveries 0 3 18 21
2. Quality parts 0 3 15 18
3. Small lot size 0 3 11 14
4. Supplier network 0 3 8 11
5. Communication with suppliers 0 0 7 7
6. Reduced lead-time 0 1 4 5
7. Proximity to the customer 0 0 5 5
8. Single sourcing 0 0 4 4
9. Long-term contract 0 0 4 4
10. Supplier training 0 1 3 4
[D] Total quality control
1. Continuous quality improvement 0 6 23 29
2. Employee inspecting own work 0 6 13 19
3. Stop the line 1 5 7 13
4. Preventive maintenance 0 5 8 13
5. Fool proofing (autonomation) 0 3 6 9
6. Visible controls 0 4 4 8
7. Variance reduction 0 1 3 4
8. Statistical process control 0 1 3 4

"Fenet-specific critical variables included in the study are listed in the bibliography in a
square bracket [ ].
Table 2. Classification of lIT tenet-specific critical variables for 46 articles."
 The just-in-time philosophy 663

Based on the number of articles published on the JIT implementation, it can be seen
that rapid growth has occurred in JIT research since 1981 (see Table 2). Further
analysis identified 11 variables associated with the elimination-of-waste tenet. Kanban
is the most often mentioned variable (37 times). On the other hand, right tools at the
right place piece is the least cited variable. Of the five variables identified for the
employee participation in decision-making tenet, cross-training of workers and group
decision-making tenet, cross -training of workers and group decision-making are the
most frequently mentioned variables. Life-long employment and employee suggestions
are mentioned less frequently. For the supplier participation tenet, frequent and
reliable deliveries of quality parts are cited more often. Surprisingly, single sourcing,
long-term contract for suppliers and supplier training are the least often mentioned
variables . For the total-quality-control tenet, continuous quality improvement and
employees inspecting their own work, are the most frequently discussed variables. On
the other hand, variance reduction and statistical process control variables are cited
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explicitly the least number of times. It should be noted that while frequency of citation
provides some indication of the relative importance of a given variable, this technique
may under-represent emerging variables and cannot identify additional variables that
may be critical.
Empirical studies on JIT implementation in manufacturing have been done more
recently. These studies typically used a small sample size, are industry specific or
collected data from the JIT companies in a particular geographic location. Nonethe-
less, they examine the effectiveness of the JIT implementation. A major focus of these
studies has been on the benefits and the problems of JIT implementation (Celley et al.
1986, Crawford et al. 1988, 1m and Lee 1989, Golhar et al. 1990). The cited benefits
include reduced inventory, increased productivity and higher quality of goods.
However, JIT implementation involves additional costs to provide new equipment and
the employee training programmes (Finch 1986). Although benefits and costs have
been discussed separately in the literature, no empirical studies have been undertaken
to examine the cost effectiveness of the JIT implementation.
Simulation studies on the lIT implementation have been reported since 1983. To
measure the efficiencyof an assembly line for a given production strategy, most of these
stud ies considered variations in processing time, demand and machine down-time
(Huang et aI. 1983, Lee and Seah 1988, Villeda et al. 1988, Sarker and Harris 1988,
Sarker 1989). Mathematical models have also been developed to examine diverse issues
in JIT manufacturing such as plant location, scheduling and mixed model assembly line
problems (Das and Heragu 1988, Miltenburg and Sinnamon 1989, Miltenburg 1989).
The focus of the simulation and mathematical models has been on production in the
JIT environment. However, inter-dependency between purchasing, quality and
production remains unexplored. Further simulation research is needed to integrate
these manufacturing issues in order to understand their inter-relationships and
contributions to the overall productivity improvement.

4.2. Kanban
Kanban is an inventory control system that is used in the JIT manufacturing
environment. Conceptual articles in this category describe one-card and two-card
kanban systems and discuss their advantages and limitations (for details see Esparrago
(1988), Schonberger (1983) and other references under the subtitle 'Kanban' in the
bibliography). Simulation studies ofkanban systems typically consider a manufactur-
ing environment with uncertain demand, variable processing time, and random
 6.64 D. Y. Golhar and C. L. Stamm

machine breakdowns (see, for example, Gupta and Gupta 1989, Changchit and Kung
1988). The objective of these studies is to find the number of kanbans for each work-
station that will reduce inventory. The effect of different assignment rules on the
number ofkanban cards has also been explored using simulation (Lee 1987, Gravel and
Price 1988). Mathematical models, on the other hand, study the economic benefits of
set-up reduction to find the optimal lot size for deterministic demand (see, for example,
Porteus 1985, South 1986, Funk 1989, Philipoom et al. 1990). For stochastic demand
and a limited number of workstations, mathematical models have been developed to
find the optimal number ofkanbans at each workstation (see, for example, Rees et al.
1987, So and Pinault 1988). The number of articles published on kanban is a reflection
of interest in kanban as an effective tool in controlling inventory in a JIT environment.

4.3. Cellular manufacturing

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Although there is a rich body of literature on group technology (see the review
article by Huang and Houck (1985) and the references listed therein), only five articles
examine the role of cellular manufacturing in the JIT environment (see, for example,
Wemmerlov and Hyer 1987, Zelenovic and Tesic 1988).The objective of this research is
to identify common parts and design If-cells to manufacture them with increased
efficiency. Further studies are needed to examine U-celllay-outs, scheduling of different
parts, work-content for each employee, and an appropriate training level for employees
assigned to If-cell.

4.4. Accounting
Only recently (since 1988) have articles been published that critique the appropri-
ateness of traditional accounting practices in the JIT environment (see, for example,
Tatikonda 1988, Mills 1988, Harris 1990).They suggest the use of alternate accounting
methods, such as process costing, instead of the currently used product costing method.
Not surprisingly, given the recent interest in this field, all the cited articles are
conceptual. Different types of studies (empirical, simulation or, mathematical) should
be undertaken to identify suitable accounting practices in the JIT environment. In our
opinion, this is a rich area for researchers to investigate.

4.5. Human resource management

Two early conceptual articles discuss the Japanese approach to human resource
management (Drucker 1971, Fazakerley 1976). Drucker (1971) stresses the role of
employee contributions in improving productivity and advocates an active human
resource development strategy. Fazakerley (1976), however, is critical of the demands
imposed by the JIT philosophy on employees. The majority of the articles in this
category emphasize that developing a problem-solving network, a cross-trained
workforce, and group decision-making are critical for successful JIT implementation
(see,for example, Johnson and Ouchi 1974, Sanfield 1984, Hopkins 1989).To date, only
one empirical study and a simulation study have been reported in the literature to
examine in-company communications, staff benefits and job security (Treleven 1987,
Oliver and Wilkinson 1989). Further studies are needed to explore human resource
management issues in the JIT environment. These issues include employee cross-
training, worker participation in decision-making and self-inspection of produced
parts.
 The just-in-time philosophy 665

4.6. Purchasing
The JIT purchasing issues are discussed by Gupta (1990) and Schonberger and
Gilbert (1983), among others. They identify the supplier-related issues to include
frequent and reliable deliveries of quality parts in small lots. In return, to strengthen a
supplier relationship, a JIT buyer is expected to award a fair and a long-term contract,
and to provide training for and communicate effectively with suppliers. The supplier
relationship in the JIT environment has also been examined extensively (Bartholomew
1984, Manoochehri 1984, Burt 1989, Fieten 1989). Some of the problems identified in
the conceptual articles are lack of support from suppliers, product quality and lack of
communication (Ansari and Modarress 1986, Balsmeier 1988). Recommended
solutions to these problems are supplier training, long-term contract to suppliers,
supplier certification and plant audit programmes. Besides the conceptual articles,
several empirical studies on JIT purchasing have been published (see, for example,
O'Neal 1989, Chapman and Carter 1990). Increased communication between the
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supplier and the JIT buyer firms and frequent deliveries of quality parts in small lots are
identified as critical variables for JIT purchasing. However, small sample size has been
a problem with these studies. Transportation logistics issues that relate to JIT
purchasing are reported by Lieb and Miller (1988),Bagchi et al. (1987),Perry (1988)and
Ansari and Heckel (1987). Simulation studies (Bookbinder and Locke 1986, Bagchi
1988) examine the feasibility of a distribution centre in the JIT purchasing environ-
ment. Reported mathematical models consider a variety of issues such as the economic
advantages of cooperation between a buyer and a supplier (Banerjee 1986, optimal
order size and the number of deliveries (Gupta and Bagchi 1987, Ramasesh 1990).

4.7. Quality
In a JIT environment, improved quality of goods reduces lot size (Juran 1978). It is
observed that when traditional inspection plans are used in a JIT environment, reduced
lot size increases inspection efforts (Krupp 1985). Mathematical models are developed
to investigate appropriate sampling plans for such situations (Baker 1987, Chung
1987). The significance of process control as a technique for monitoring quality is also
examined (Krupp 1987, Modarress and Ansari 1987). Given the critical role of quality
in successfulJlT implementation, it is interesting to note that only six articles have thus
far been reported on quality to the JIT environment.
5. Book reviews
Early articles describing the JIT philosophy appeared in different professional
journals. But the most useful material for practitioners appeared in texts. These texts
integrated the JIT material and provided readily available references on the JIT
philosophy. Using real-life examples, the books explain the tenets of the JIT
philosophy. Most of the books describe steps for successful implementation of the JIT
philosophy. In order to provide a comprehensive review of the JIT literature, we
provide a list of JIT books in the bibliography and review three prominent texts.
Monden (1983) wrote an early text on the JIT philosophy to provide a theoretical
framework that explains the JIT philosophy and its implementation. The examples
cited in the text are from the Toyota Motor Company. He considers cost reduction as
the primary goal ofthe JIT philosophy. To achieve this goal he proposed the following
three subgoals:
(1) quality control that includes kanban, smooth production flow, reduced set-up
and production lead-time, U-cells, and standardized operations;
 666 D. Y. Golhar and C. L. Stamm

(2) quality assurance considers a 100% self-inspection, statistical quality control,

establishing quality circles, eliminating outside inspection, fool-proofing and
autonomation; and
(3) respect for humanity involves giving workers valuable jobs, training and
development of multifunctional workforce, open communication, seeking
employee suggestions for continuous improvements, and allowing production
workers to stop the line.
Monden also highlights problems faced by small suppliers to a JIT firm. Toyota's
approach, to minimize the impact of these problems and get full co-operation from the
small suppliers, is discussed. However, the suppliers' role in successful JIT implement-
ation is not emphasized. Furthermore, workforce reduction techniques discussed in the
book may be misinterpreted as lay-offs by non-Japanese managers. In summary,
Monden's text is a well written source for managers and engineers interested in
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understanding and implementing the JIT philosophy. The theoretical framework

provided should be of considerable interest to researchers.
In his book World Class Manufacturing (WCM), Schonberger (1986) presents
theory, concepts and implementation of WCM. According to him, the following four
basic principles are necessary for the successful implementation of WCM:
(1) total quality control;
(2) JIT production;
(3) total preventive maintenance; and
(4) employee involvement.
He emphasizes supplier development and employee involvement in the successful
implementation ofWCM. Numerous examples are cited from various North American
industries that have implemented the WCM concepts. The book provides a list of the
JIT firms. Firms wanting to be competitive in the world market might benefit from
implementing the WCM concepts suggested by Schonberger.
Suzaki's (1987) book is a practical text on the implementation of the JIT
philosophy. He gives numerous examples of shop-floor JIT implementations in various
industries. The following topics are covered in the text:
(1) elimination of waste;
(2) set-up time reduction;
(3) smooth production flow;
(4) employee participation in decision-making;
(5) total quality control;
(6) total preventive maintenance;
(7) kanban; and
(8) suppliers.
Although, no theoretical framework is provided to enhance understanding of the JIT
philosophy, the book is well written and easy to follow. Suzaki's book is a useful source
for both workers and managers responsible for implementing the JIT philosophy.

6. Future research directions

Introduction of the JIT philosophy in the West is a relatively recent phenomenon.
It is only in the last decade that most of the research articles on this philosophy have
started to appear in professional journals. Although several research papers discuss JIT
 The just-in-time philosophy 667

implementation in manufacturing, most conceptual studies consider only a few

variables associated with the basic tenets of the JIT philosophy. Lack of standard
terminology for the critical variables coupled with a narrow focus of the reported
research limits the generalizability of the findings.
The usefulness of empirical studies on the JIT implementation is also limited
because of their small sample size. Thus, national studies, across different industries
and with large sample size are needed. As discussed earlier, further research on the JIT
topic areas, particularly, quality, celJular manufacturing and accounting, is in order. To
understand the inter-relationships between manufacturing functional areas in the JIT
environment, integrative models must be developed and tested. As pointed out earlier,
cost effectiveness of the JIT implementation is another area that needs further scrutiny.
Given the vastness of the JIT philosophy, it is impossible to envision all possible
future research directions. However, in our opinion, the two most critical research
areas in JIT implementation are small manufacturing firms and the service sector. Only
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a few articles deal with the JIT implementation in small manufacturing firms (Soufield
1984, Finch 1986, Finch and Cox 1986, Manoochehri 1988, Newman 1988, Golhar
et al., 1990, Inman and Mehra 1990). Small firms playa dominant role in the
manufacturing sector. For example, 97% of the US manufacturing firms are small and
they account for 40% of the gross national product (Inman and Mehra 1990). Hence,
competitiveness can only be achieved when every operation in the manufacturing
pipeline (including small manufacturers) becomes efficient. In order to be globally
competitive, the number of small manufacturers implementing the JIT philosophy will
increase. It is, therefore, important that future research explores the success and
problems of JIT implementation in small manufacturing firms. Also notably missing
are articles on the JIT implementation in the service sector. Only one article has
examined the applicability of the JIT techniques in administration (Billesbach and
Schniederjans 1989). Because of its documented growth and the need to make the
service sector more productive, further investigation of application of the JIT principles
in this sector is needed.

Acknowledgments
Drs John Rizzo, Snehamay Banerjee and Marilyn La Plante's efforts in reviewing
the original manuscript are greatly appreciated.

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REFS, L. P., HUANG, P. Y., and TAYLOR III, B. W., 1989, Comparative analysis of a MRP lot-for-
lot system and a kanban system for a multistage production operation. International
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management. Journal of the Academy of Marketing Science, 13, 124-133. ( C )
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67. ( C)
SCHONBERGER, R. 1., and SCHNlEDERJANS, M. J:, ·1984, Reinvesting inventory control.
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manufacturing system simulation on a microcomputer. Simulation, 45, 52-70. (S)
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• SoUTH, J. B., 1986, A minimum production lot-size formula for stockless production.
Production and Inventory Management, 27, 143-150. ( M )
SPENCE, A. M., and PORTEUS, E. L., 1987, Setup reduction and increased effective capacity.
Management Science, 33, 1291-1301. ( M )
TREVINO, J., and MCGINNIS, L. F., 1986, Electronic spreadsheet implementation of a lot
sizing procedure for a single-card kanban system. Computers and Industrial Engineering,
11, 340-345. ( S)
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and Economic Review, 20, 7-18. (C)
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principles in German companies. Engineering Costs and Production Economics
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WILDEMANN, H., and CARLSON, J. G., 1987, Implementing just-in-time concepts into European
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ZANGWILL, W. I., 1987, From EOQ towards ZI. Management Science, 33, 1209-1223. ( M )

Cellular manufacturing
DE WITTE, J., 1980, The similarity coefficients in production flow analysis. International Journal
of Production Research, 18,503-514. ( C)
HARHALAKIS, G., NAGI, R., and PROTH, 1. H., 1990, An efficient heuristic in manufacturing cell
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• WEMMERLOV, V., and HYER, N . L., 1987, Research issues in cellular manufacturing.
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International Journal of Production Research, 26, 539-552. (C)
 674 D. Y. Golhar and C. L. Stamm

Accounting
BALLEW, V. B., and SCHLFSINGER, R. 1., 1989, Modern factories and outdated cost systems do not
mix. Production and Inventory Management, 30, 19-23. (C)
FERGUSON, P., 1989, General managers in the JIT cross fire. Journal of General Management
(UK), 14, 5-17. (C)
FORBFS, R. S., JoNES, D. F., and MARTY, S. T., 1989, Managerial accounting and vendor relations
for JIT: a case study. Production and Inventory Management, 30, 76-81. (C)
• HARRIS, E., 1990, The impact of JIT production on product costing information systems.
Production and Inventory Management, 31, 44-48. (C)
• MILLS, R. W., 1988, Management accounting for the new manufacturing environment. Journal
of General Management (UK), 14,67-77. (C)
• TATIKONDA, M. V.; 1988, Just-in-time and modern manufacturing environments: implications
for cost accounting. Production and Inventory Management, 29, 1-5. (C).

Human resources management

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• DRUCKER, P. F., 1971, What can we learn from Japanese management? Havard Business
Review, 49, llQ-122. (C)
• FAZAKERLY, G . M., 1976, A research report on the human aspects of group technology and
cellular manufacture. International Journal of Production Research, 14, 123-134. (C)
• HOPKINS, S. A., 1989, An integrated model of management and employee influences in just-in-
time implementation. Advanced Management Journal, 54, 15-20. (C)
• JOHNSON, R. T., and OUCHI, W. C, 1974, Made in America (under Japanese management).
Harvard Business Review, 52, 66-69. (C)
KLEIN,1. A., 1989, The human costs of manufacturing reform. Harvard Business Review, 67,
60-66. (C)
• OLIVER, N., and WILKINSON, B., 1989, Japanese manufacturing techniques and personnel and
industrial relations practice in Britain: Evidence and implications. British Journal of
Industrial Relations (UK), 27, 73-91. (E)
SAHA, A., 1987, Training as a major factor in Japanese economic success. Journal of European
Industrial Training (U K), 11, 13-16.
SAHA, A., 1989, Human factors behind the development of Japanese product quality.
International Journal of Quality and Reliability Management (UK), 6, 71-80. (C)
• SONFIELD, M. c., 1984, Can Japanese management techniques be applied to American small
business? Journal of Small Business Management, 22, 18-23. (C)
TFSFA Y, 8., 1990, Compensation: just in time eliminates waste. Personnel Journal , 69, 81-82. (C)
• TRELEVEN, M., 1987, The timing oflabor transfers in dual resource-constrained systems: 'push'
vs. 'pull' rules. Decision Sciences, 18, 73-88. (S)
WILKINSON, 8., and OLIVER, N., 1989, Power, control and the kanban. Journal of Management
Studies (UK), 26, 47-58. (C)

Purchasing
ANSARI, A., 1986, Strategies for the implementation of JIT purchasing. International Journal of
Physical Distribution and Materials (UK), 16, 5-12. (C)
• ANSARI, A., and HECKEL, J., 1987, JIT purchasing: impact of freight and inventory costs. Journal
of Purchasing and Materials Management, 23, 24-28. (E)
• ANSARI, A., and MODARRESS, B., 1986, Just-in-time purchasing: problems and solutions. Journal
of Purchasing and Materials Management, 22, 11-15. (C)
ANSARI, A., and MODARRESS, 8.,1987, The potential benefits of just-in-time purchasing for U.S .
manufacturing. Production and Inventory Management, 28, 3Q-36. ( E )
ANSARI, A., and MODARRESS, 8. , 1988, JIT purchasing as a quality and productivity centre.
International Journal of Production Research, 26, 19-26. (E)
BACHE, J., CARR, R., PARNABY, J., and TOBIAS, A. M., 1987, Supplier development systems.
International Journal of Technology Management (Switzerland), 2, 219-228. (C)
• RAGCHI, P. K., 1988, Management of materials under just-in-time inventory system: a new look.
Journal of Business Logistics, 9, 89-102. (S)
BAGCHI, P. K., 1989, Carrier selection: the analytic hierarchy process. Logistics and Transpor-
tation Review (Canada), 25, 63-73. (M)
 The just-in-time philosophy 675

* BAGCHI, P. K., RAGHUNATHAN, T. S., and BARDI, E. J., 1987, The implications ofjust-in-time
inventory policies on carrier selection. Logistics and Transportation Review (Canada), 23,
373-384. (E)
• BALSMEIER, P. W., 1988, Just-in-time: implications and applications for purchasing. Arkansas
Business and Economic Review, 21, 28-33. (C)
* BANERJEE, A., 1986, A joint economic-size model for purchaser and vendor. Decision Sciences,
17,292-310. (M)
• BARTHOLOMEW, D., 1984, The vendor-eustomer relationship today. Production and Inventory
Management, 25, 1O~121. (C)
• BOOKBINDER, J. H., and loCKE, T. D., 1986, Simulation analysis of just-in-time distribution.
Internationa/Journal ofPhysical Distribution and Materials Management (U K), 16, 31-45.
(8)
• BURT, D. N., 1989, Managing suppliers up to speed. Harvard Business Review, 67,127-135. (C)
BURTON, T. T., 1988, JIT/repetitive sourcing strategies: 'tying the knot' with your suppliers.
Production and Inventory Management, 29, 38-42. (C)
CARLSON, 1. G ., 1989, JIT applications to warehousing operations. Engineering Costs and
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Production Economics (Netherlands), 17,315-322. (E)

* CHAPMAN, S. N., and CARTER, P. L., 1990, Supplier/customer inventory relationships under just
in time. Decision Science, 21, 35-51. ( E)
• FIETEN, R, 1989, Integrating key suppliers-s-essential part of a just-in-time concept. Engineer-
ing Costs and Production Economics (Netherlands), 15, 185-189. ( C )
FRAZIER, G . L., SPEKMAN, R. E., and O'NEAL,C. R., 1988, Just-in-time exchange relationships in
industrial markets. Journal of Marketing, 52, 52--67. ( C )
GIUNIPERO, L. c., and O'NEAL, C, 1988, Obstacles to JIT procurement. Industrial Marketing
Management, 17, 35-41. (C)
• GUPTA, Y. P., 1990, A feasibility study of JIT purchasing implementation in a manufacturing
facility . International Journal of Operations and Production Management, 10, 31-41. (C)
• GUPTA, Y. P., and BAGCHI, P. K., 1987, Inbound freight consolidation under just-in-time
procurement: application of clearing models. Journal ofBusiness Logistics, 8, 74-94. (M )
HILL, A. V., and VOLLMANN, T. E., 1986, Reducing vendor delivery uncertainties in a JIT
environment. Journal of Operations Management, 6,381-392. ( M)
LEE, S. M., and ANSARI, A., 1985, Comparative analysis of Japanesejust-in-time purchasing and
traditional US purchasing systems. International Journal of Operations and Production
Management (UK), 5,5-14. ( C )
• LIEB, R. C, and MILLER, R. A., 1988, JIT and corporate transportation requirements.
Transportation Journal, 27, 5-10. ( E)
MACBETH, D. K., 1987, Supplier management in support of JIT activity: a research agenda.
International Journal of Operations and Production Management (UK), 7, 53--63. (C)
* MANooCHEHRI, G . H., 1984, Suppliers and the just-in-time concept. Journal of Purchasing and
Materials Management, 20, 16-21. (C)
• NEWMAN, R. G., 1988, The buyer-supplier relationship under just-in-time. Production and
Inventory Management, 29, 45-50. (C)
O'NEAL, C. R., 1987, The buyer-seller linkage in a just-in-time environment. Journal of
Purchasing and Materials Management, 23, 7-13. ( E)
• O 'NEAL, C. R., 1989, JIT procurement and relationship marketing. Industrial Marketing
Management, 18,55--63. (E)
• PERRY, J. H., 1988, Firm behavior and operating performance in j ust-in-time logistics channels.
Journals of Business Logistics, 9, 19-33 . (E)
* RAMASESH, R. V., 1990, Recasting the traditional inventory model to implement just-in-time
purchasing. Production and Inventory Management, 31, 71-75. (M )
SCHONBERGER, R 1., and ANSARI, A., 1984, 'J ust-in-time' purchasing can improve quality. Journal
of Purchasing and Materials Management, 20, 2-7. ( C )
• SCHONBERGER, R. J., and GILBERT, J. P., 1983, Just-in-time purchasing: a challenge for U.S.
industry. California Management Review, 26, 54-68. ( C)
STORHAGEN, N. G., and HELLBERG, R, 1987, Just-in-time from a business logistics perspectives.
Engineering Costs and Production Economics (Netherlands), 12, 117-121. (C)
VICKERY, S. K., 1989, International sourcing: implications for just-in-time manufacturing.
Production and Inventory Management, 30, 66-72. (E)
 676 The just-in-time philosophy

Quality
• BAKER, R. C, 1987, The marriage of zero inventories and conditional sampling procedures.
Production and Inventory Management, 28, 27-30. (M)
• CHUNG, C, 1987, Quality control sampling plans under zero inventories: an alternative
method. Production and Inventory Management, 28, 37-42. (M) .
• JURAN, J. M., 1978, Japanese and Western quality: a contrast in methods and results.
Management Review, 10, 26-45.. (C)
• KRUPP, J. A. G., 1985, Reconciling quality control sampling plans and zero inventories.
Production and Inventory Management, 26, 143-148. (C)
• KRUPP, J. A. G., 1987, Process capability: one element of zero inventories . Production and
Inventory Management, 28, 17-21. (C)
• MODARRESS, B.,and ANSARI, A., 1987,Two new dimensions in the cost of quality . International
Journal of Quality and Reliability Management (UK), 4, 9-20. (C)

JITbooks
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GODDARD, W. E., 1986, Just-in- Time: Surviving by Breaking Tradition (Essex Junction, VT:
Oliver Wright Limited).
GRIECO, Jr, P. L., GoZZO, M. W., and CLAUNCH, J. W., 1988, Just-in- Time Purchasing: In Pursuit
of excellence (Plantsville, CT: PT Publications).
HALL, R. W., 1983, Zero Inventories (Homewood IL: Dow Jones Irwin).
HALL, R. W., 1987, Attaining Manufacturing Excellence: Just-in -Time, Total Quality, Total
People Involvement (Homewood, IL: Dow Jones Irwin).
HAY, E. 1.,1988, The Just in Time Breakthrough: Implementing the New Manufacturing Basics
(New York: Wiley).
HAYS, R., and WHEELWRIGHT, S., 1984, Restoring our Competitive Edge: Competing Through
Manufacturing (New York: Wiley).
HUTCHINS, D., 1988, Just in Time (Aldershot, England: Gower Technical).
IMAI, M., 1986, Kaizen (New York: Random House).
ISHIKAWA, K., 1985, What is Total Quality Control? Japanese Way (Englewood Cliffs, NJ:
Prentice-Hall).
LUBBEN, R. T., 1988, Just-in- Time Manufacturing: An Aggressive Manufacturing Strategy (New
York: McGraw-Hili).
• MONDEN, Y., 1983, Toyota Production System (Atlanta: Institute of Industrial Engineers).
SCHONBERGER, R. J., 1982, Japanese Manufacturing Technique (New York: The Free Press).
• SCHONBERGER, R. J., 1986, World Class Manufacturing (New York: The Free Press).
SEPEHERI, M., 1986, Just-in- Time, Not Just in Japan : Case Studies of American Pioneers in JIT
Implementation (Falls Church , VA:American Production and Inventory Control Society).
SHINGO, S., 1981, Study of Toyota Production System from Industrial Engineering View Point
(Tokyo: Japan Management Association).
SHINGO, S., 1985, A Revolution . in Manufacturing: The SM ED System, (Stamford, CN:
Productivity, Inc.).
SHINGO, S., 1986, Zero Quality Control: Source Inspection and the Poka-yoke System (Stamford,
CN: Productivity, Inc.).
• SUZAK1, K., 1987, The New Manufacturing Challenge: Techniques for Continuous Improvement
(London: The Free Press).
Voss, C, 1987, Just-in- Time Manufacture (New York: IFS Publications) .
Voss, C., 1989, Just-in- Time: A Global Status Report (New York: IFS Publications).
WANTUCK, K . A., 1988, Just-in-Time for America (Cambridge, MA: The Forum, Ltd.).
• WARNE, 1., 1986, Just-in- Time Production System, McDonnell-Douglas, Video Training Hand
Book.