Just-in-Time: the

reincarnation
of past theory and practice

DBM 510: ADVANCED OPERATIONS

MANAGEMENT
SARAH JANE B. ORILLOSA, MBA
Reporter
 1. Summarize the article.

Just-In-Time (JIT) is a managerial concept

that has been heavily promoted in the
world-wide automotive industry. Its
underlying principles have been implemented
by most car manufacturers or car assemblers
for many decades.
• JIT, as a phenomenon, has been named
differently at different times during
the last century. Therefore, the
newness of JIT and its underlying
principles is questioned in the
article. The article describes parts
of the historic evolution of JIT
during the twentieth century in
literature. It is concluded that JIT
is just a reincarnation of past theory
and practice.
 What were the underlying issues or major
ideas and concepts presented in the paper?
Explain.
JIT signifies a
• continuous search for waste reduction and
to make only what is needed “just in time”
(Toyoda, 1987).
• Widely used in automotive industry

The objective of this article is to describe

the historical evolution of JIT in
literature from the beginning of the
twentieth century.
JIT embodies a philosophy of excellence
to establish demand-pull inventory
practices that produce products to design
specifications at a rapid, smooth
delivery rate with no idle inventories,
no unnecessary lead-times, and increased
employee involvement in the marketing
channel. (Forgarty et al., 1989).
JIT is not an academic concept or a concept
created by consultants, but was a concept
created at Toyota Motor Company in order to
manage its internal activities and the
relationships to subcontractors as efficiently
as possible (Heiko, 1989).

An interesting comparison might be made to two

other managerial concepts, namely “supply chain
management” and “efficient consumer response”.
A concise definition of supply chain
management (SCM) is an integrating
philosophy to manage the total flow of a
distribution channel from supplier to
ultimate customer.
Quick Response (QR) is defined as
the application of just-in-time
concepts throughout the entire
supply pipeline, from the
manufacturer to the final consumer,
provides the capability to reorder
merchandise as it is sold.
Efficient Consumer Response (ECR) is
another concept which is used in the world-
wide grocery and retail industry. The
ultimate goal of ECR is a responsive
consumer-driven system in which
distributors and suppliers work together as
business allies to maximize consumer
satisfaction and minimize cost.
 DEFINITIONS
It is based upon the simple idea that wherever
possible no activity should take place in a
system until there is a demand for it. Thus no
products should be made, no components ordered,
until there is downstream requirement
( Christopher, 1992)-

It is an approach for providing smoother

production flows and making continual
improvements in processes and products
(Aggarwal, 1985).
 DEFINITIONS
JIT is a philosophy where all goods are
to arrive exactly when they are needed,
that is, neither too soon nor too late
(Hall, 1983).

JIT is manufacturing without

inventories, and the elimination of
waste (Schonberger 1982).
 OBJECTIVES
Aggarwal (1985) see JIT’s core
objectives as obtaining low-cost, high-
quality, and on-time production.

Hall (1983) writes that the objectives

of JIT are a stockless production and an
elimination of waste.
 OBJECTIVES
Monden (1981a,b) defines the goals as the
reduction of costs surrounding production
processes, and the system also helps to
increase the turnover ration of capital.

Rao and Scheraga (1988) comment that the

purpose is to eliminate all waste.
 MEANS
Aggarwal (1985) states that to achieve the
objectives of JIT the systems strives to
eliminate stock or buffers between the
successive processes, and to minimize any
idle equipment, facilities, or workers.

Monden (1981a,b) argues that the JIT

ideal is achieved through the smoothing
of production, the design of processes,
and the standardization of jobs.
 MEANS
Schonberger (1982) says that it is about
total quality management and continuous
improvements.

Vollmann et al. (1988) state that it is

about changes in physical systems, the
reduction of set-up times, and a drive
towards lot sizes that are constantly
smaller, as well as the reduction of
inventory levels et cetera.
 .
What were the findings of
the paper?
In literature, the richness of different
definitions is overwhelming. Thus published
definitions of JIT are often given
different meanings. However, two main
components of the definitions seem to
appear repeatedly, namely, a continuous
search for waste reduction and to make only
what is needed just in time. This is well
in accordance with the concept’s original
definition (Toyoda, 1987).
What were the findings of
the paper?
The objectives of JIT are hard to
interpret due to lack of homogeneity in
literature. However, two objectives seem
to be common denominators: a continuous
search for waste reduction and to make
only what is needed in time. This is
well in accordance with the concept’s
original definition (Toyoda, 1987).
What were the findings of
the paper?
Consequently, the means to achieve the
objectives of JIT vary between authors, as
do their definitions and objectives. The
agreement concerning the benefits that may
be obtained through the implementation of
JIT such as: reduced inventory, lowered
unit costs, improved quality, more rapid
reaction to changes in design, and
increased productivity.
What contributions does the paper make
to the advancement of knowledge,
theory, and practice? Why?

The main message in this article is that JIT

is not new-to-the-world, but a suitable and
attractive etiquette or name that has gained
world-wide acceptance in the last decades.
However, its underlying thoughts and
principles are long since documented in
literature.
What contributions does the paper make
to the advancement of knowledge,
theory, and practice? Why?

This paper also presents definitions,

objectives and means of Just-in-Time from
the point of view of the different authors
which could be a valid basis for the
company’s executive in the automotive
industry in making decisions for the
betterment of the overall performance.
 What are the limitations of the paper?

This paper is purely descriptive, hence it

is only limited to the presentation of the
description of the managerial concept of
Just-In-Time in terms of definition,
objectives and means as perceived by the
different authors. The article does not
present concrete evidence as to the
relationship or impact of the JIT to the
overall performance of the company.
Furthermore, the focus of the paper is only
in the automotive industry.
Can the findings of the paper have a potential for
future research in the Philippine settings? Explain

Yes, the findings can have a potential for

future research in the Philippine settings.
Further researches should use correlational
approach to extract absolute evidence as to the
contribution of Just-in-time concept on the
operation of the businesses not only in
automotive industry but also in other
industries such as merchandising and service
concern.
Thank you for listening.