The Just-In-Time System in Selected Philippine Manufacturing Companies

Abstract

The study evaluated the performance of the Just-In-time-System in four Philippine manufacturing companies. Research results indicate that the JIT concept can be applied successfully in the Philippines, and that the impact on operations is likely to be comparable with that in typical Japanese firms. However, there are indications that the system may not be readily applicable to raw materials and finished goods inventory. Findings also tend to show that the most important factor contributing to the success of the JIT effort is top management support, and the most important factor that influences the choice of specific JIT projects is the nature of manufacturing processes and equipment used in the company. There were also indications that differences in JIT results exist between companies engaged in assembly operations and companies engaged in continuos manufacturing.

The study employed the case study approach and relied mostly on information obtained from plant visits and interviews with key officers of the selected firms. Average annual inventory reduction was the key measurement variable. Disparities in the levels of success were explained in terms of four success determinants - top management support, employee readiness and cooperation, engineering support, and supplier cooperation- and three project selection factors- manufacturing process and equipment, product demand patterns, and product characteristics.

Given the findings of the study, a four-phase JIT implementation program was developed.