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JIT purchasing: Literature review andimplications for Indian industryDixit GargPublished online: 15 Nov 2010.

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PRODUCTI ON PLANNING & CONTROL, 1999, VOL. 10, NO. 3, 276 –285

J IT purchasing: literature review and implicationsfor Indian industry

DIX IT GARG and S. G. DESHM U KH

K eywords J IT, purchasing, attributes, implementation

A bstract. Purchasing has become a vital part of just-in-t ime( J IT) systems because of its potential for quality improvementand cost saving. This paper reviews and classi� es the literatureon JI T purchasing. The importance of attributes in J IT pur-chasing has been identi� ed. A survey of the attributes was car-ried out in Indian context. The relat ive importance of suchattributes is highlighted. Based upon this work, some researchdirections are also identi� ed which need close scrutiny.

1. Introduction

The basic idea of J IT was originally developed andformalized into a sophisticated management system bythe Toyota M otor Company in Japan. Since then,many views on the contents of J IT have been put forward( Hall 1983, Ansari 1986b, Sohal et al. 1989, M iltenberg1990, Prem Vrat et al. 1993, Garg et al. 1995) as J IT is

being globally accepted. J I T can be summarized as anapproach to eliminate waste and achieve manufacturingexcellence.

According to Golhar and Stamm ( 1991) , the four basictenents of the J IT philosophy are: ( i) elim inat ion ofwaste; ( ii) employee involvement in decision making;( iii) supplier participitation; and ( iv ) total quality con-trol. These tenents must be applied across the three basicfunctions of manufacturing; purchasing, production andmarketing. Vuppalpati et al. ( 1995) have analysed therelationship between two fundamental managementsystems—JIT and TQM ( Total Quality M anagement) ,and emphasized their joint implementation. The litera-ture on J I T purchasing and supply/sourcing attributeshas been discussed. Stamm and Golhar ( 1993) havereviewed various papers on J IT purchasing and categor-ized them as ‘conceptual’, ‘case’ and ‘empirical’ studies.Thirty-four attributes are identi� ed, and frequency of

Authors: D. Garg, Department of M echanical Engineering, Regional Engineering College,Kurukshetra-136119, India, and S. G. Deshmukh, M echanical Engineering Department, I IT,New Delhi, India.

Dixit Garg is presently serving as Lecturer at the M echanical Engineering Department,Regional Engineering College, Kurukshetra, India . He completed his Ph.D. in 1997 in the areaof J IT purchasing from Kurukshetra University , Kurukshetra, India . His areas of interest are J IT,TQM , production planning, etc. He has published around 25 papers in reputed international/national journals, conferences and seminars.

S. G. Deshmukh is presently working as Associate Professor at the M echanical EngineeringDepartment, I IT, New Delhi. He has earlier served as Associate Professor in the School ofM anagement, I IT, M umbai. His areas of interest are J IT, simulation and modelling, multi-attribute decision making, etc. He has published a large number of papers in international andnational journals of repute, e.g. IJ PR, IJ OPM, IJPE, JORS, PPC, Productivity, Industrial Engineering ,etc.

Production Planning & Control I SSN 0953–7287 print/I SSN 1366–5871 online Ñ 1999 Taylor & Francis L tdhttp://www.tandf.co.uk/J NL S/ppc.htm

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citation of an attribute in the literature is assumed to be ameasure of its importance. This paper attempts to classifyand review the papers in the area of J IT purchasing. Theliterature published after the review by Stamm andGolhar ( 1993) is reviewed in this paper. The objectivesof this paper are to review the literature on J IT purchas-ing, and based on this identify relevant attributes inIndian context.

2. Literature survey

In the literature, J IT purchasing has continuouslydrawn attention from researchers and practit ioners.This is re� ected in a number of survey articles andreviews, and empirical/modelling work. Attentiontowards case studies has also increased, while a few con-ceptual articles have also appeared. A possible classi� ca-tion scheme is suggested and shown in � gure 1.

2.1. Conceptual articles

Romero ( 1991) pointed out that many � rms applyingJ IT in supply management consider it to be simply achange in policies that they must negotiate with suppliersin order to cut cost. He emphasized the need for realinterest in implementing J IT in their factories and along-term manufacturing strategy that would coordinateJ IT with other areas of material � ow management, insideand outside of the company.

Turnbull et al. ( 1992) documented the adoption of theJapanese model of manufacturing in the U K automobileindustry. I t is argued that the Japanese model involvesvery high intra- and interorganizational dependences.A lthough this does not cause problems in Japan due to

the structure of the Japanese motor industry, the struc-ture of the UK vehicle industry presents severe obstaclesto the successful use of J apanese systems. Such exercisesmay even sweep away potential strengths of the existingsupplier.

Leavy ( 1994) discussed two types of strategic buyer–supplier relations—the tradit ional and J IT perspectives.The need for strategic management is emphasized, as J ITperspectives are mainly based upon mutual trust, eco-nomic health and competit iveness of the buyer’s com-pany.

2.2. Survey and reviews

Lyons et al. ( 1990) examined the e å ect of developingJapanese-sty le buyer–supplier relations by conductinginterviews with some US manufacturers and their suppli-ers. I t has been found that these relations accrue bene� tsand risks for both buyers as well as suppliers.

Cusumano and Takeishi ( 1991) conducted a survey ofJapanese and U SA ( including Japanese-managed plantsin the USA) automakers to obtain an overview of sup-plier relations and management. The results have shownthat Japanese suppliers perform better in dimensions, e.g.quality , price, etc. Japanese-managed autoplants estab-lished in the USA have, in general, adopted Japanesepractices and recieve an extremely high level of qualityfrom their Japanese as well as US suppliers. The surveyhas also indicated that U S � rms have adopted at leastsome practices tradit ionally associated with Japanese� rms, re� ecting some convergence towards Japanesepractices.

F reeland ( 1991) administered a questionnaire to 230people in di å erent indust ries to study J IT purchasingpractices in the USA. Sixty usable responses were

J IT purchasing 277

J IT Purchasing

jj j j j

Conceptual articles Survey/Review articles Case studies Empirical/M odelling workj j j j

Romero ( 1991) Lyons et al. ( 1990) A lanso & Fransier ( 1991) Golhar et al. ( 1993)Turnbull ( 1992) Cusumano & Takeishi ( 1991) Fandel & Reese ( 1991) Ramasesh ( 1993)Leavy ( 1994) F reeland ( 1991) Davis ( 1993) Baker et al. ( 1994)

Helper ( 1991) Kolay ( 1993) Banerjee & Kim ( 1995)W eber et al. ( 1991) M artel ( 1993) Gupta & Kini ( 1995)Billesbach & Hayen ( 1994) Grande & Satir ( 1994) M ukhopadhyay ( 1995)Banerjee & Sriram ( 1995) Hyde et al. ( 1994) Nassimberi ( 1995)Fawcett & Scully ( 1995) Ellram & Edis ( 1996) Garg et al. ( 1996a)M ohan & Singh ( 1995) W ood et al. ( 1996) Garg et al. ( 1996c)Tersine & Hummingbird ( 1995) Chen & Chen ( 1997) Goyal & Deshmukh ( 1997)W aters-Fuller ( 1995) Garg et al. ( 1997a)Garg et al. ( 1996b) Landry & Duguay ( 1997)Garg et al. ( 1997b)

Figure 1. J IT purchasing: classi� cation of surveyed literature.

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received. I t is found that 45% had ‘formal’ J IT purchas-ing programmes and 22% were planning to implement.The longer J I T purchasing had been in place, the greaterthe percieved bene� ts. Quality is found to be the mostimportant criteria in selecting those parts to be purchasedon a J IT basis, while distance between buyer and sup-plier is not found to be important. Exchanging of infor-mation between buyer and vendor is found to be moreimportant with J IT purchased parts.

Helper ( 1991) emphasized the spirit of the ‘voice’ rela-tionship between US automakers and their suppliers inorder to achieve a global competit ive edge. On the basisof a survey in 1989, she found that the automakers aresigni� cantly more likely to provide detailed informationto their suppliers compared to 1984, to have long-termcontracts. On the other hand, they do not feel that theircustomers are more trustworthy than they were in 1984.The surveyed automakers tend to obtain improvementsin quality and delivery by forcing suppliers to adoptmethods, e.g. J IT delivery, without J IT production.

Weber et al. ( 1991) reviewed 74 articles on vendorselection to � nd the importance of 23 vendor selectioncriteria attributes identi� ed by Dickson ( 1966) . Amongthe attributes; quality , delivery, net price, availability ofproduction facilities and capabil it ies, and technical cap-ability were found to be important.

Billesbach and Hayen ( 1994) examined balance sheetsof 28 di å erent US companies implementing J IT to someextent, and they conclude that statistically signi� cantimprovements have been attained in managing theinventory for a period of 10 years by this partia l imple-mentation of J IT.

The study carried out by Banerjee and Sriram ( 1995)( sample size = 207) has indicated the impact of informa-tion technology ( I T) through electronic data interchange( EDI ) on: ( i) policies and procedures followed by thepurchasing department; and ( ii) organizational changesrequired. The results show that the fewer years after EDIadoption, the more important computer sk ills were forbuyers, and the greater the need for buyer retraining.Further, the higher the percentage of purchasing transac-tions using EDI , the greater the perception of purchasingin� exibility . Encouraging vendors to use EDI creates sig-ni� cant changes in purchasing procedures and alsoreduces operating ineæ ciencies. The more strongly thecompany encourages its vendor to adopt EDI , thefewer changes are necessary in the organizations.

Fawcett and Scully ( 1995) used survey-based method-ology to examine the impact of J I T purchasing strategiesalong with a contingency theory environment–strategy–performance relationship to consider vital issues, e.g. inplanning, organizational support, and implementationstatus, a å ecting the success of J IT purchasing implemen-tation strategies. The � ndings suggest that J IT purchas-

ing strategies represent an appropriate response to globalcompetit ion, and J IT purchasing can have a signi� cantpositive impact on performance improvement when ade-quate planning and support are in place.

M ohan and Singh ( 1995) discussed the existing buyer–supplier relations in Indian dairy cooperatives in Gujaraton the basis of the opinions of 71 executives in nine fed-erations. Three types of buyer–supplier strategies, i.e.group of small vendors, small dominant suppliers and afew small vendors, and long-term partnership have beendescribed with their relative percentage. The dominanceof a single supplier is found to be discouraged.

Tersine and Hummingbird ( 1995) emphasized leadtime reduction to gain compet it ive advantages, and dis-cussed competitor- and customer-centred methods toreduce lead time. A continuous improvement framew orkis described in the competitor-centred method, and thecustomer-centred approach explains how the produc-tion–consumption gap can be reduced.

Waters-Fuller ( 1995) classi� ed the ‘J I T Sourcing’ lit-erature into three groups—the advocate school, pragma-tist school and sceptical school. L iterature on these threeschools have been discussed with J IT purchasing andsupply/sourcing attributes, e.g. long-term contracts,total quality suppliers, dependable deliveries, small lotsizes, exchange of data, reduced supplier costs, and stableschedules.

Garg et al. ( 1996b) analysed some vital issues in J ITpurchasing in an Indian context on the basis of a ques-ionnaire ( n = 28) sent to 80 di å erent Ind ian indust ries.The issues include the importance of J IT attributes,problems in implement ing J IT, and expected bene� tsfrom JIT purchasing implementation. Some researchdirections are also identi� ed for future work.

Garg et al. ( 1997b) found the importance of identi� edJ IT purchasing and supplier evaluation criteria attri-butes ( Stamm and Golhar 1993) in Indian industrieson the basis of a survey ( n = 31) . I t has been foundthat 14 J IT purchasing and nine supplier evaluation cri-teria attributes are being given a high level of importanceby these I ndian industries.

2.3. Case studies

Alanso and Frasier ( 1991) emphasized that manage-ment should also apply and encourage J IT in planningand managerial activit ies in addition to the manufactur-ing sector. They have also shown how performance par-ameters are improved when the company reducesmanagement delays. I t is also argued that the shorterthe product life cycles, the greater the bene� ts attainedby applying J I T principles.

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Fandel and Reese ( 1991) have studied a headlightmanufacturing industry which was making J IT deliveriesto a German car manufacturer with logistics constraints.The practical case shows how acceleration of the distri-bution process in the supply chain can become an eæ -cient solution which allows for optimal lot sizes as well asfor low holding cost.

Davis ( 1993) presented a framework for e å ective sup-ply chain management developed at Hewlett–Packard,which addresses the uncertainty that plagues the per-formance of suppliers, the reliability of manufacturingand transportation processes, and the changing demandsof customers. I t has been found that sound data com-bined with the right quantitative techniques make a thor-ough supply chain analysis possible. Strategic decisionson supply chain design can increase customer satisfactionand save money. Approaching problems with a systemsview and a sound supply chain methodology leads togreater savings.

Kolay ( 1993) presented an approach for developing anoverall performance index of suppliers. The approach isdetermined for one industry. Data from 16 suppliers de-livering 28 items have been analysed to determine theoverall performance index of the suppliers. The suppliersasset base is found to be appreciating. M artel ( 1993) hasexplained the procedure adopted by a company in imple-menting J IT purchasing and dealing with suppliers.Internal changes made by the company, e.g. supply deci-sions ( ABC system, etc.) , supp lier selection, partnershipwith supplier and supplier certi� cation, and bene� tsobtained have been highlighted. Grande and Satir( 1994) discussed the feasibil ity of transforming purchas-ing and quality control operations from conventional toJ IT practices. The study is con� ned to the dock-to-storesarea of an aircraft engine manufacturing plant. Seventy-four components used in the study are selected from arepresentative sample of inventory classes, commoditygroups and agreement type with vendors. A time–costtrade-o å analysis is also carried out for the componentsselected so as to evaluate the cost e å ectiveness of theconventional purchasing and quality control. F indingson savings in terms of inventory-related costs and inven-tory turnover through the implementation of J I T prac-tices are also reported . A transformation framework isthen developed to determine the suitabil ity of indiv idualcomponents for J IT-based practices. Potential savingsthat run into millions of dollars and signi� cant improve-ments in inventory turnover are found as a result of theabove transformations. However, the savings andimprovements estimated are con� ned to the ‘dock-to-stores’ area. There is enormous savings potential if J ITpractices are successfully implemented throughout thecompany.

Hyde et al. ( 1994) explained procurement policies( contract growout system) in US broiler indust ries,which are found to resemble the J IT system. However,it may be stated that because the products ( food prod-ucts) are perishable and the waste visible, the broilerindustry is forced to adopt the principles of J IT purchas-ing.

E llram and Edis ( 1996) carried out a case study ofsuccessful buyer–supplier partnership, development andmaintenance at the Eastman Kodak Company. Five keyoperat ing va lues identi� ed were: respect for the dignity ofthe indiv idual; uncompromising integrity; trust; credibil-ity ; and continuous improvement. These resulted in ben-e� ts, e.g. time saving, long-term growth, new businessand product development opportunities, etc.

Wood et al. ( 1996) have presented a prescriptiveapproach for becoming and staying a successful part sup-plier. They follow a printed circuit board manufacturer,Hadco corporation, who became a ‘problem solver’ inthe 1990s from a ‘technology specialist’ in the 1960s.The learning points for small- and medium-sized manu-facturers from this case study are: ( i) by knowing itscustomers, a � rm can design itself to be the type of sup-plier that best deals with those customers; ( ii) corporatetransformation is not a linear process; ( iii ) successful sup-pliers provide distinctive competencies; ( iv) structuremust be adjusted to re� ect the chosen strategy; and ( v)problem solving is cultural, not tactical.

Chen and Chen ( 1997) conducted a case study of aChinese automobile company, and carried out a surveyof its 50 suppliers to study the current status of manufac-turer–supplier relationships based on J IT princip les.Some proposals for Chinese industry were recommended,e.g. establish partnerships between manufacturer andsupplier, reduce supplier base, select supplier in J IT con-text and continuously monitor its performance, develop asupplier quality function, solicit supplier involvement,reduce lot sizes and develop dependable deliveries, con-struct a basic infrastructure, using EDI techniques, per-form training and education in J IT purchasing andsupply. Garg et al. ( 1997a) conducted a case study ofan Indian automobile industry which has implementedJ IT purchasing. I t has been found that most of the iden-ti� ed J IT purchasing and supplier evaluation criteriaattributes are being given ‘good’ weightage. The com-pany has sustained its competitiveness in spite of oldmachinery by applying Japanese management tech-niques. J IT purchasing comprises a signi� cant contribu-tion.

Landry and Duguay ( 1997) conducted a case study ona medium-sized Canadian industry, manufacturingweather strips for cars. The industry has integratedM RP, kanban and barcoding systems to achieve J ITprocurement. Bene� ts achieved by the company include

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drastic reduction of total inventory levels, purchase leadtimes, better � rst in � rst out control, etc.

2.4. Modelling/empirical work

Golhar et al. ( 1993) have carried out a survey of 81 USmanufacturing � rms to � nd out the degree of importancegiven to 34 J IT purchasing and 14 supplier evaluationcriteria attributes identi� ed by Stamm and Golhar( 1993) . F ifty-three usable responses were recieved. I twas found that 29 J IT purchasing and nine supplierevaluation criteria attributes were given signi� cant im-portance. I t is interesting to note that no signi� cantchange in buyers’ � rm’s inspection of incoming parts isobserved. The quality of parts and reliability of deliveriesare the most important supplier evaluation criteria.Erratic product demand and customized product wereidenti� ed as the leading problems with J IT purchasing.

Ramasesh ( 1993) extended his own work ( 1990) byconsidering three components of a procurement system,i.e. ‘ordering’, ‘transportation’ and ‘receiving and hand-ling’ subsystems. An inventory model is developed inwhich uncertainty in lead time is also considered.Optimal lot sizes and annual inventory cost are also com-puted for various levels of investments to enable the plan-ner to choose appropriate options. Baker et al. ( 1994) alsoexamined Ramasech’s ( 1990) work, and considered thepotential risk in long-term commitment. They suggestedthat the management of the industry should balance thisrisk involved, and reduction in contract cycle cost associ-ated with the commitment instead of optimizing the ship-ping quantity. Banerjee and Kim ( 1995) have presentedan integrated J IT inventory model with a singlebuyer and supplier showing that a joint optimal inte-grated inventory replenishment policy, as opposed toindependently derived policies for one buyer andsupplier, results in signi� cant economic bene� ts forboth parties. Gupta and Kini ( 1995) have analysed 11papers on J IT purchasing and have developed a J IT-PQD ( price quantity discount) model proving thatprice quantity discount is possible and bene� cial in J ITpurchasing agreements. M ukhopadhay ( 1995) developeda PC-based scheduling methodology to optim izeunloading using an algorithm. Nassimberi ( 1995) hasanalysed the intensity and nature of the relationshipbetween principal operational J IT practices, i.e. thepractices that create the link between buyer’s andsupplier’s operation chains. The study was carried outon the basis of a survey of 457 respondents in di å er-ent areas from 50 I talian plants. The study hasdemonstrated that the practices considered show threemain underlying factors: delivery synchronization;interaction on quality ; and design. Each of these

factors is partly independent from others and can beinterpreted as a distinct type of buyer–supplier inter-action.

Garg et al. ( 1996a) have analysed two inventory mod-els under J I T purchasing agreements and carried outtheir parametric analysis. They have also proposed alogistic-based inventory model ( Garg et al. 1996c) forJ IT procurement considering investments in ‘vendordevelopment and order processing’, ‘transportation’,‘receiving and handling’, and ‘quality assurance’ subsys-tems. A parametric analysis has also been carried out toprovide useful insights to help the management in deci-sion making about the level of investment in the varioussubsystems.

Goyal and Deshmukh ( 1997) have emphasized anintegrated procurement-production system and statedthat a J IT environment provides an ideal setting forsuch a coordination between procurement and pro-duction policies. They also proposed a tradit ionalinventory model recast into a model for a J IT systemfor a single product, multistage batch environment aim-ing at minimization of total variable cost, and therebydetermining the batch sizes for the product and rawmaterial order sizes.

3. Suggested classi� cation and analysis

I n table 1, a literature classi� cation scheme ( Stammand Golhar 1993) is suggested for surveyed literatureconsidering 34 attributes. I t may be observed that the‘supplier action’ attributes are not being given enoughattention; while ‘outcome’, ‘buyer’ and ‘joint buyer–sup-plier’ attributes have recieved good response in the litera-ture. Tables 1 and 2 show that several papers havediscussed only a few attributes, indicating the beginningof specialized research interest in J IT purchasing byacademia/industry.

3.1. Buyer action attributes

As seen from table 1, ‘long-term contracts’ and ‘fewersuppliers’ have received a good response, as in the past( Stamm and Golhar 1993) . However, ‘supplier plantaudit’, ‘buyer responsible for inbound freight’, ‘freightconsolidation’, ‘contract carrier’ and ‘emphasize per-formance not specs’ could not attract the attention ofresearchers; hence they may be assumed to be of lit tlesigni� cance.

Table 2 indica tes that ‘fewer suppliers’ and ‘long-termcontract’ are discussed in all types of papers. ‘Supplierplant audit’ and ‘contract carrier’ seem to have beenignored in the surveyed literature. Similarly, ‘supplier

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J IT purchasing 281

Table 1. I nput–outcome JI T purchasing attributes.

Purchasing

I nput to J IT Join t buyer–supp lier Outcome

Buyer action Supp lier action Action attributes

Attribu te no.

Name of

� rst author 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Lyons ( 1990)

Alanso ( 1991)

Cusumano ( 1991)

Fandel ( 1991)

F reeland ( 1991)

Helper ( 1991)

Romero ( 1991)

W eber ( 1991)

Turnbull ( 1992)

Davis ( 1993)

K olay ( 1993)

M artel ( 1993)

Ramasesh ( 1993)

Golhar ( 1993)

Baker ( 1994)

Billesbach ( 1994)

Grande ( 1994)

Hyde ( 1994)

Leavy ( 1994)

Fawcett ( 1995)

M ohan ( 1995)

Tersine ( 1995)

Banerjee and Kim

( 1995)

Banerjee and

Sriram ( 1995)

Gupta ( 1995)

M ukhopadhyay

( 1995)

Nassimberi ( 1995)

W ater-fuller ( 1995)

Garg et al. ( 1996a)

Garg et al. ( 1996b)

Garg et al. ( 1996c)

Garg et al. ( 1997a)

Garg et al. ( 1997b)

W ood ( 1996)

Ellram ( 1996)

Chen ( 1997)

Goyal ( 1997)

Landry ( 1997)

Grand total 18 25 9 10 8 5 2 4 2 2 9 4 6 4 11 3 6 6 6 19 15 5 12 3 9 16 16 12 4 17 26 4 20 5

( n = 38)

Attributes: 1: F ewer supp liers; 2: long-term contract; 3: increased volume to supp liers; 4: supplier evaluation; 5: supplier certi� cation; 6: suppliertrain ing and development; 7: supplier p lant aud it ; 8: buyer responsible for inbound freight; 9: freight consolidation; 10: contract carrier; 11: stab leproduction schedule; 12: emphasize performance not specs; 13: reliab le network of supp liers; 14: statistica l process control; 15: close proximity ; 16:quality circle; 17: � exible supp liers; 18: reduced set-up ; 19: increased customer support; 20: mutual trust and co-op, relationship; 21: increasedinformation sharing; 22: supp lier involvement in design; 23: continuous improvement; 24: joint value analysis programmes; 25: standard ized packaging;26: frequent deliveries; 27: reliable delivery ( on time) ; 28: small shipment size; 29: exact quantity; 30: reduced delivery lead times; 31: high quality; 32:elim ination of receiv ing inspection; 33: fair price; 34: reduced paperwork.

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certi� cation’, ‘supplier training and development’ and‘stable production schedule’ are also ignored in the con-ceptual and empirical/modelling literature.

3.2. Supplier action attributes

Stamm and Golhar ( 1993) discuss only one attribute,‘close proximity’, frequently, while ‘� exible supplier’,‘reduced setup’ and ‘increased customer support’ havealso been highlighted in the literature to some extent,as is obvious from table 1. ‘Quality circle’ is touched toa small extent.

The conceptual, survey/review and empirical/model-ling articles in the surveyed literature have, in general,ignored the ‘supplier action attributes’, however, in casestudy articles, they have been given some weightage.

3.3. J oint buyer–supplier action attributes

In the survey of Stamm and Golhar ( 1993) , only theattribute ‘increased information sharing’ had been dis-cussed often, while ‘mutual trust and cooperat ive rela-tionships’, ‘continuous improvement’ and ‘standard izedpackaging’ have in addition also been discussed fre-quently in the surveyed literature reported in thispaper. The ‘joint value analysis programme’ is ignored.‘M utual trust and cooperative relationship’ and ‘contin-uous improvement ’ have been discussed in all types ofarticles in the surveyed literature.

3.4. Outcome attributes

The attributes, e.g. ‘frequent deliveries’ and ‘highquality ’ have often been discussed in the literature sur-veyed by Stamm and Golhar ( 1993) . The ‘reliable ( on-time) deliveries’, ‘small shipment size’, ‘reduced deliverylead times’ and ‘fair price’ have been discussed in thesurveyed literature. However, attributes, e.g. ‘small ship-ment size’, ‘elimination of receiving inspection’, ‘reducedpaper work’ and ‘exact quantity’ seem to have beenignored in the surveyed literature.

‘Frequent deliveries’, ‘high quality ’ and ‘fair price’have been discussed frequently in the literature.‘Reliable delivery’ has been discussed often in all typesof work, except in empirical/modelling work.

4. Survey of Indian practices

A survey ( Garg 1997, Garg et al. 1997b) was conductedof Indian industries to � nd the extent of relevance of J ITpurchasing attributes. A questionnaire was developedand administered to 70 industries. Responses from 31industries ( response rate = 44.3% ) were obtained. Datacollected were analysed with the help of factor analysis ona scale ( 0–100) . The scope of J I T implementation wasfound to be 70 on the scale ( 0–100) , which can be said tobe ‘fairly good’. This study had predicted a better scopeof J I T implementation in India compared to earlierstudies ( Prem Vrat et al. 1993, Garg et al. 1996b) . Thisindicates that the scope of J IT implementation in India isincreasing. Table 3 presents the importance of J IT pur-chasing attributes in a decreasing order as percieved by

282 D. Garg and S. G. Deshmukh

Table 2. Summary of attribute frequency count by article type.

Purchasing

I nput to J IT Join t buyer–supp lier Outcome

Buyer action Supp lier action Action attributes

Attribute no.

Attribute type 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Concep tual ( n = 3) 2 3 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 3 0 1 2 1 0 2 2 1 0 2 3 0 2 1

Survey and 8 10 3 3 5 4 2 2 1 2 6 2 1 2 2 2 2 1 2 6 8 1 3 0 4 5 5 6 2 6 12 2 7 3

review ( n = 13)

Case study 4 6 3 4 3 1 0 1 0 0 3 0 3 2 5 1 4 4 3 6 5 2 4 2 2 5 8 2 2 7 6 1 4 1

( n = 12)

M odelling ( n = 10) 4 6 3 3 0 0 0 0 1 0 0 1 2 0 3 0 0 1 1 4 2 1 3 0 3 4 1 3 0 2 5 1 7 0

Grand total 18 25 9 10 8 5 2 4 2 2 9 4 6 4 11 3 6 6 6 19 15 5 12 3 9 16 16 12 4 17 26 4 20 5

( n = 38)

Attributes as for tab le 1.

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respondents. Outcome action attributes are being givenmore weightage followed by supplier, joint buyer–supplier and buyer actions. Attent ion must be focussedon the identi� ed important attributes in an Indian indus-trial environment so that maximum bene� ts can beobtained from JIT implementation.

5. A pplication of J IT in an Indian industry: Acase study

A case study ( Garg 1997) in J IT implementation of anIndian tractor assembly industry was conducted. Theindustry has an annual turnover of more than Rs. 3000million ( one US dollar = Rs. 40) . In collaboration with aJapanese company, it assembles tractors at an annualrate of 24 000 units. The company employs 800 person-nel, including a purchasing sta å of 70, out of which 20

are executives. I t started implement ing J I T purchasingin the mid 1980s. Init ia lly , the company recieved dis-couraging results in almost all the areas for severalyears, but management was con� dent about the ultimatesuccess of their programme. After a few years, everythingwas streamlined and management began achieving sig-ni� cant results. Records of the company indicate thatsigni� cant visible improvements in the cylinder headline, internal liner, control housing, hydraulic line, trans-mission line and � nal tractor assembly line were observedthrough J IT implementation. Signi� cant bene� ts wereachieved by reductions in inventory, material movement,space, manpower, work in process and lead time, and anincrease in productiv ity and quality . The key steps in J ITimplementation were: extensive training of employees onpull concepts; identi� cation of key performance par-ameters; new layouts based on U-shaped cells ( whereverapplicable) ; standardization of operations; a mainten-ance plan for each machine; housekeeping; visual control;and multi-skill training. I t has been found that most ofthe identi� ed J IT purchasing attributes were givenstrong emphasis. In a wide sense, it can be said that inspite of old machinery, the company is sustaining itscompetit iveness in the tractor market by applying J IT,and J I T purchasing has contributed signi� cantly in help-ing the company achieve competit iveness in the market-place ( table 4) .

6. Concluding observations

The objective of this paper is to highlight some of thecritical issues relevant to J IT purchasing. Two simple

J IT purchasing 283

Table 3. Importance of J IT purchasing attributes ( in decreas-ing order) .

M ean scoreName of attribute M aximum = 100

High quality 91.4M utual trust and co-op relationship 90.0Reliable delivery ( on time) 89.2Exact quantity 89.2Increased customer support 87.9Supplier evaluation 86.3Stable production schedule 84.7Reliable network of suppliers 84.7Reduced delivery lead time 83.0Quality circle 79.3Long-term contract 78.2Continuous improvement 77.6Fewer suppliers 77.4Increased volume to suppliers 75.0Increased information sharing 74.2Fair price 74.1F lexible suppliers 71.7Standardized packaging 71.7Emphasize performance not specs 69.8Supplier certi� cation 68.5Reduced paperwork 67.2Frequent deliveries 66.1Elimination of receiv ing inspection 63.4Close proximity 62.5Contract carrier 62.5Reduced set-up 59.7Small shipment size 59.3Buyer responsible for inbound freight 56.7Statistical process control 54.0Freight consolidation 52.4Supplier involvement in design 49.1Joint value analysis programmes 46.0Supplier plant audit 44.0Supplier training and development 42.7

Table 4. Learning points from the case study.

� The Indian industry, especially automobile components,w ill have to become competitive in order to survive.

� J IT system can help the Indian industry in its growth toachieve a competit ive edge.

� Purchasing system has a great potentia l for cost savings.

� Single sourcing in Indian context is indeed possible.

� There must be a comprehensive system for vendor selec-t ion and evaluation taking into account attributres, e.g.quality , delivery time, fast response to engineeringchanges, price, etc.

� Signi� cant bene� ts in many areas, e.g. reduct ion of inven-tory, material movement, space and non-value addingtime, increase in product ion volume, etc. can be obtainedby J I T implementation.

� There is a great need for education and training foremployees.

� I nvolvement of top management is absolutely necessary ifJ IT systems are to be implemented.

� J IT purchasing can prove to be an aide in implementingtotal quality management and JIT culture.

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classi� cation schemes have been suggested here, categor-izing the available literature into: ( i) conceptual articles,survey and reviews, case studies, and empirical/modellingwork; and ( ii) buyer action, supplier action, joint buyer–supplier action, and outcome attributes. Vast literatureon J IT purchasing and its growing adoption in developedand developing countries indicate the interest shown inthis area by researchers and practit ioners. The import-ance of attributes in J IT purchasing has also been iden-ti� ed based upon its frequency of citation in the surveyedliterature and in an Indian context. The identi� ed im-portant attributes need to be paid close attention duringpractice in industries, as full implementation of J IT pur-chasing may not be feasible in many situations. The con-ducted case study of an Indian tractor industry in J ITimplementation has also given useful insights.

Based upon the work in this paper, the following issuesneed further scrutiny

( i) The importance of various attributes must bedetermined in speci� c sectors in developed anddeveloping countries, and then based upon thisimportance , a cross-national comparison can bemade which wil l be of use to practit ioners.

( ii) Attributes, e.g. ‘inventory reduction at variousstage’, ‘el imination of waste’, ‘early detect ion ofdefects’, etc. may also be considered in J IT pur-chasing.

( iii ) There is a need to develop a performance assess-ment framework taking into account cost–bene� tanalysis of implementing J I T purchasing. Thisframew ork would be system based spanning overall business functions of an organization.

( iv) Currently, there is grow ing concern about theapplication of TQM philosophy in practice. I twould be interesting to note the relevance of cus-tomer focus and buyer–supplier linkages in theoverall TQM framework vis-a-vis J IT purchasingsystem.

( v) The following issues need to be resolved in a quan-titative framework

� Whether inventory has indeed been removedfrom the supply chain, or simply re-distributedto other, upstream members of the chain.

� What are the bene� ts of entering into aJ IT programme and factors a å ecting thesebene� ts?

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