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Transcript of Jit
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
65
EVALUATE OF THE APPLICATION OF JUST-IN-TIME PRODUCTION
SYSTEM FIELD STUDY ON THE JORDANIAN INDUSTRIAL
COMPANIES
FATHI RADI
THE UNIVERSITY OF JORDAN,
JORDAN.
ABSTRACT
This study aims to clear-out the concept and the awareness of just in time system (JIT) in
Jordanian industrial companies, and to recognize the results and benefits of the application of
just in time system (JIT) in the Jordanian industrial companies, identify the problems that faces
Jordanian industrial companies to apply just in time system (JIT), analyze the effects of applying
just in time system (JIT) on products cost and level of quality in Jordanian industrial companies.
Te study field study relied (30) questionnaires distributed randomly on population include all
administrators in high and medium level of management in Jordanian industrial companies, the
study reaches results that: Industrial companies do not have significant awareness of (JIT), there
is low level of significance in the following:
Inventory reduction in Industrial companies, Multi-skilled workers, in time supply system,
products cost in Industrial companies, Maintenance in Industrial companies have a medium level
of significance.
The study also reaches that there is significant positive relationship between applications of just
in time system (JIT) and products cost.
Upon these results the study reaches recommendations that Industrial companies should have
better awareness and should adopt just in time system (JIT) in their production, this should leads
to reduce waste and to use raw materials completely inept, and to take advantage of all working
time of employees without wasting.
KEY WORDS: JIT, Inventory reduction. Multi-skilled workers, Raw materials, Products cost.
Introduction:
Every production system seeks to improve its performance in order to achieve its goals of
economic in terms of reducing costs and maximizing profits, so the phenomenon (JIT) or
production system in the time had a significant impact and great attention by the companies and
various industries since this phenomenon known through its application in the Japanese
companies.
The interest in this phenomenon growing since the seventies of the twentieth century, through
the awareness of the importance of this phenomenon by America corporate and their intention to
transfer this technology and apply it in U.S. industries, by analysis it and study its benefits and
drawbacks in order ti suitability such technical reflection on social construction and social
cohesion.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
66
The interest of phenomenon raised due to the distinctive success achieved by Toyota and
Japanese companies that have applied this system on their production, which focused mainly on
reducing inventory through several mechanisms, and reducing the rate of production defective,
the goal is to achieve high productivity, high quality and low cost, in specific times, through
which the company gets higher revenues and savings in investment to achieve a higher level of
competitiveness in the global market.
The significance of the study: 1. The need of evaluate the application of just in time system Jordanian industrial
companies to be aware of the extent of progress made .
2. The study‟s contribution in increasing the knowledge of Jordanian companies of
(JIT) and its importance to achieve high productivity and better utilization of
available resources.
3. The application of (JIT) in Jordanian industrial companies contribute in developing
national economy, as the success of the company and its growth has a positive
impact on the national economy, in terms of effective contribution to the gross
national product, nevertheless that Jordanian industrial companies success means
finding different jobs for a large number of job seekers and thus reduce the level of
unemployment.
4. In view of the foregoing, the noticeable is a lack of Arabic studies that examine just
in time system (JIT) in Jordan, and try to link it by the Jordanian industrial
companies, hoping to conquer this study, the shortage in Arabic library in general
and Jordan in particular.
5. Trying to attract the attention of researchers to the importance of the subject and
urge constant search for the necessity imposed by Jordan‟s economic conditions and
the need to exploit the available national resources efficiently.
Objectives of the study:
This study seeks to achieve the following objectives:
1. Highlighting the concept of just in time system (JIT) in Jordanian industrial companies.
2. Recognize the results of the application of just in time system (JIT) in the Jordanian
industrial companies.
3. Identify the problems faced by Jordanian industrial companies to apply just in time system
(JIT).
4. Reaches conclusions and recommendations that could increase the production of
Jordanian industrial companies and reduce production cost, in order to get more
competitive strength.
Problem of the study:
Study problem Crystallized in trying to find out how suitable to apply just in time system (JIT) in
Jordanian industrial companies, and if Jordanian environment suitable for this system. This
system as promoting by various compositions often leads to positive results in growing and
improving the production process.
The study highlights the problem of the following questions:
1. Does Jordanian industrial companies have the awareness of just in time system (JIT),
and do they apply it in Jordan?
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
67
2. What are the benefits that Jordanian industrial companies could achieve by apply
just in time system (JIT)?
3. What are the effects of applying just in time system (JIT) on products cost of
Jordanian industrial companies?
4. What are the effects of applying just in time system (JIT) on the level of quality of
the product?
Hypotheses:
The first hypothesis:
There is significant positive relationship between applications of just in time system (JIT) and
products cost of Jordanian industrial companies.
The second hypothesis:
There is significant positive relationship between applications of just in time system (JIT) and
the level of quality of the product.
The third hypothesis:
There are significant differences in applied of just in time system (JIT) according to the company
size in Jordanian industrial companies.
The fourth hypothesis:
There are significant differences in applied of just in time system (JIT) according to the directors
of the company (Jordanian directors, foreign directors).
Theoretical Concepts
Just-In-Time production system:
The last two decades witnessed a progress and revolution in innovation and production and the
existence of global competition in several industries, in addition to the acceleration of
environmental change process.
Such events are usually in favor of the consumer, as the intense competition leads to lower prices
and more quality in manufacturing. This change in the work environment makes many
companies involved in environmental programs, to achieve global competition, to meet the
demands of consumers in time, to achieve its objectives in terms of profitability and social status.
So those companies went to run efficiently workers on the one hand, and to reducing the costs of
production for maximum profit and cope with competition (Garrison, 2006, p12)
However, that process is facing major obstacles, including: large stocks, lost time in the
production process, and the high proportion of damaged with the presence of non-essential
activities that do not add value to the product, but raise the cost of production.
Just-In-Time production system
Just-In-Time production system aims to overcome obstacles concerning high cost of production
to reach the lower cost and best quality, a system costs in a timely manner, Just-In-Time
production system works on the receipt materials today to be used tomorrow (Schroeder, 1989:
p4)
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
68
The APICS (American Production and Inventory Control Society) defined Just-In-time (JIT) as
“a philosophy of manufacturing based on planned elimination of all waste and on continuous
improvement of productivity” (Panchal, et al., 2013, p460).
Just-In-Time production system can be used in Industrial and services corporate business, but the
impact of this system will be much larger corporate productivity, because it maintains three types
of stock constitute reserves to counter any faltering may face the processes of production and
distribution (Al-Yaquob, 2009, p2).
Just-In-Time production system concentrates on the following elements (Schafer, et al., 2005):
Flexible production system is linked to the actual reserves of the market, as the customer orders
drives the purchase of materials and take advantage of available resources and production
scheduling.
The company needs to store the production materials, managing the time of purchase of
Production materials, in order to avoid or reduce the costs associated with stock materials and to
reach the lowest Degrees.
Planning and scheduling of production in accordance with the requirements of the actual market,
as is the production operation take place at the suitable time of sale, thereby reducing the costs
that associated with the existence of a stockpile of production under operating, thus eliminate
reduces the costs resulting from the acquisition of storage areas and control costs and the costs of
damage
Literature review
(Polito, et al, 2006 (
Just-in-Time under Fire: The Five Major Constraints Upon JIT Practices
The study aimed to identify some of the challenges of just in time application of the system of
production which showed that there are five challenges, including
The desire of the customer and economic conditions, the logical conditions, organizational
culture, accounting and financial practices, as well as the problems of small suppliers.
The study's reaches recommendations that managers who apply the system (JIT) to take in
account the lower boundary of the stocks that may be affected by logical conditions. As well as
taking into account the suitability of the financial system and the company's accounting practices
applicable to real-time production system.
(Sale & Inman, 2003)
Survey-based comparison of performance and change in performance of firms using
traditional manufacturing, JIT and TOC
This study aimed to compare the performance and performance change in the traditional
industrial companies that use the system (JIT) and (TOC). Where some companies are used to
assess the performance of the philosophies which time production system and the theory of
determinants (constraints)
So the importance of this study is to determine whether the results of this philosophy is clear and
concrete to improve the performance of companies with traditional industries.
The results of the study were:
- That the system (JIT) the best in traditional industries in terms of the possibility of developing
performance.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
69
- The study could not determine whether the system (JIT) more efficient in the use of traditional
industries. While the study confirmed that the financial performance is more efficiency of when
you use (JIT).
- The idea of linking (TOC) and (JIT) to give a better performance in the companies did not
materialize.
Methodology:
Population and sample:
Population include all administrators in high and medium level of management in Jordanian
industrial companies (30) questionnaires distributed randomly on administrators in four
companies (Arab Potash Company, Jordan Phosphate Mines Company, Nippon Jordan Fertilizer
Company, Sun Establishment for Plastic Industry Tools), the researcher collect (28)
questionnaires, (26) of them are suitable to analyze.
Data Collection Method
There are two methods will be applied for collecting the data.
First Method: Performing a review and a survey for theoretical, field studies, publications and
the websites related to just in time system.
Second Method: Collecting data related to the studied subject by carrying out a questionnaire.
The questionnaire consists of two parts:
1- General information
2- The second subpart represents the statements about applying just in time system and
its effects on Jordanian industrial companies.
Study Design
This study is considered analytical. And the field study is conducted by designing the study
instruments (questionnaires) which include categories and questions related to the subject and
objectives of the study.
Study Limitations
There are some limitations of this study including:
1- This study was limited when it does not cover all types of organization (such as service
organizations).
2- Data collected from subjects of the study depend on answers to circulated questionnaires.
Data Analysis
Normality test:
One-Sample Kolmogorov-Smirnov Test was executed to clear-out the data normality, as shown
in table No. (1)
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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Table No. (1)
Normality test
One-Sam ple Kolm ogorov-Sm irnov Test
27
2.9223
.33808
.101
.101
-.075
.525
.946
N
Mean
Std. Deviation
Normal Parameters a,b
Absolute
Positive
Negative
Most Extreme
Dif ferences
Kolmogorov-Smirnov Z
Asymp. Sig. (2-tailed)
JIT
Test dis tribution is Normal.a.
Calculated f rom data.b.
Table No. (1) Shows the data has normality distribution Kolmogorov-Smirnov reaches 0.525, at
significant level (0.949), which is more the higher than the specific value (0.05)
Reliability Test
Cronpach Alfa was used to measure the stability of the measure instrument. The value of
Cronpach Alfa level was 88.3%, we consider this rate is excellent because they were higher than
the accepted rate of 60%.
Statistical Analysis:
Descriptive:
The characteristics of study subjects were described using means, and frequency distribution.
Categorical variables were described by frequencies and percentages.
1) company size
Table (2)
Company size
company size Frequency Percentage
Very large 9 %33.3
large 7 %25.9
Medium 11 %40.7
Small company 00 00
Total 27 %100
The above table shows that %40.7 of the companies were at medium size %25.9 were at large
size, %33.3 were at very large size.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
71
2) Directors of the company:
Table (2)
Directors of the company
Percentage Frequency Category
%70.4 19 Jordanian directors
%29.6 8 foreign directors
%100 27 Total
The above table shows that:
%70.4 of the samples has Jordanian directors.
%29.6 of the samples has foreign directors.
3) Job description
Table (3)
Job description
Percentage Frequency Job description
%14.8 4 G. Manager
%22.2 6 High management
%48.1 13 Middle management
%14.8 4 employee
%100 27 Total
The above table shows that:
%14.8 of the samples were G. Managers.
%22.2 of the samples High management.
%48.1 of the samples were in the Middle management.
%14.8 of the samples were employee
4) Experience
Table (4)
Experience
Percent Frequency Experience
%14.8 4 Less than 5 years
%11.1 6 5-10 times years
%7.4 13 11-15 years
%66.7 4 more than 15 years
%100 27 Total
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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The above table shows that:
%66.7 of the samples have Experience for more than 15 years.
%11.1 of the samples have Experience for 5 to10 times years.
%14.8 of the samples have Experience for more than 15 years.
%7.4 of the samples have Experience for 11-15 years.
Descriptive Analysis:
Importance levels: the researcher suggested the following rates of importance level for the
questionnaire statements.
Means (1-less than 3.0) low importance
Means (3.0-less than 3.5) medium importance
Means (3.5-5) high importance
1) Awareness: Means & Sd. Were executed to the statement of JIT awareness, ordered by
statement importance, table no. (5) Show the results
Table (5)
Means and Std. JIT awareness
Statement
no.
Std.
Deviation Mean statements sig
2 0.78082 3.0741 Administration seeks to create a suitable environment
for the application of just in time system (JIT). 1.
1 0.62017 3.00 There is an awareness of the concept and importance
of the application of just in time system (JIT). 2.
0.700 3.037 Total
Table No. 5 indicates the attitudes of the sample towards questionnaire statements of JIT
awareness, mean was (3.037), that indicates that the samples of the study do not have significant
awareness of JIT in Industrial companies.
2) Remove waste: Means & Sd. were executed to the statement of Remove waste in
Industrial companies, ordered by statement importance, table no. (6) Show the results
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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Table (6)
Means and Std. Remove waste
Statem
ent no.
Std.
Deviation Mean statements importance
7 0.823 3.296 The company does not accept any
damaged in production 1.
5 0.712 3.259 The company doesn‟t accept any waste
in its products. 2.
9 0.557 3.185
The company adopts quick and easy
handling system with minimum
Obstacles.
3.
4 0.653 3.115 The company operates production
units on required time. 4.
3 0.675 3.074
The company operates production
units manufactured in the quantities
required without an increase or
decrease.
5.
8 0.764 2.741
The company take advantage of all
working time of employees without
wasting
6.
6 1.044 2.560 The company use raw materials
completely inept. 7.
0.747 3.033 Total
Table No. (6) Indicates the attitudes of the sample towards questionnaire statements of Remove
waste in Industrial companies.
The above table indicates that Remove waste in Industrial companies have a medium level of
significance. Total means of the answers on the questionnaire statements were (3.033) which is
lower than (3.5), the table also indicates that (statements 8, 6) had low levels of significance
compared to other statements and means were less than (3.00). That indicates that the sample did
not agree about the statements (The company use raw materials completely inept, The Company
take advantage of all working time of employees without wasting).
3) Inventory reduction: Means & Sd. were executed to the statement of Inventory reduction
in Industrial companies, ordered by statement importance, table no. (7) Show the results
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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Table (7)
Means and Std. Inventory reduction
Statement
no.
Std.
Deviatio
n
Mean statements Sig
10 0.641 3.111 The company Adopts effective system to reduce
inventory constantly. 1.
11 0.801 2.889 The company purchase raw materials in small
quantities to remedy the overstock inventory. 2.
12 0.801 2.444 The company purchase raw materials in small
quantities covering the daily production scheduling. 3.
0.747 2.815 Total
Table No. (6) Indicates the attitudes of the sample towards questionnaire statements of Inventory
reduction in Industrial companies.
The above table indicates that Inventory reduction in Industrial companies have a low level of
significance. Total means of the answers on the questionnaire statements were (2.185) which is
lower than (3.00), the table also indicates that statements (12) had lower level of significance
compared to other statements and mean reaches (2.444). That indicates that the sample did not
agree about the statements (The company purchase raw materials in small quantities covering the
daily production scheduling).
4) Preventive Maintenance: Means & Sd. were executed to the statement of Preventive
Maintenance in Industrial companies, ordered by statement importance, table no. (8) Show
the results
Table (8)
Means and Std. of Preventive Maintenance Arranged by the most important statement to
the less
Statement
no.
Std.
Deviation Mean statements sig
13 0.751 3.222
The company use simple periodic
maintenance system to cope with a
sudden stop in machines.
1.
14 0.808 2.963 Workers do the periodical
maintenance themselves 2.
15 0.577 2.889 Workers disclose all parts on the
verge of destruction to be replaced. 3.
0.712 3.025 Total
This table indicates the attitudes of the sample towards questionnaire statements of process of
Preventive Maintenance in Industrial companies.
The above table indicates that Preventive Maintenance in Industrial companies have a medium
level of significance. Total means of the answers on the questionnaire statements were (3.025)
which is lower than (3.50), the table also indicates that statements (2, 3) had lower level of
significance compared to other statements and mean reaches (2.889, 2.963). That indicates that
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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the sample totally refused the statements that (Workers disclose all parts on the verge of
destruction to be replaced, Workers do the periodical maintenance themselves).
5) Multi-skilled workers: Means & Sd. were executed to the statement of Multi-skilled
workers in Industrial companies, ordered by statement importance, table no. (9) Show the
results
Table (9)
Means and Std. of Multi-skilled workers Arranged by the most important statement to the
less
Statement
no.
Std.
Deviati
on
Mean statements sig
16 0.641 3.111 The company seeks to provide skilled
labor and high productivity 1.
17 0.775 2.704 Workers are subject to internal and
external courses to increase their skills 2.
18 0.636 2.593 The company adopts rotate work policy
to give the multi-skilled workers. 3.
0.684 2.802 Total
This table indicates the attitudes of the sample towards questionnaire statements of process of
Multi-skilled workers in Industrial companies.
The above table indicates that Multi-skilled workers in Industrial companies have a low level of
significance. Total means of the answers on the questionnaire statements were (2.802) which is
lower than (3.00), the table also indicates that statement (16) had medium level of significance
compared to other statements and mean reaches (3.111). That indicates that the sample does not
clearly sure about the statements that (The company seeks to provide skilled labor and high
productivity).
6) Just in time supply system: Means & Sd. were executed to the statement of Just in time
supply system in Industrial companies, ordered by statement importance, table no. (10)
Show the results
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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Table (10)
Means and Std. of Just in time supply system Arranged by the most important statement to
the less
Statement
no.
Std.
Deviati
on
Mean statements sig
21 0.770 2.852
Suppliers participate in Company
meetings to carefully determine the
specification and to earn their trust.
1.
20 0.681 2.815 The company depends on at least three
suppliers to supply basic raw material. 2.
19 0.823 2.704 The company deals with suppliers use
the (JIT) system. 3.
0.758 2.790 Total
This table indicates the attitudes of the sample towards questionnaire statements of process of
Just in time supply system in Industrial companies.
The above table indicates that just in time supply system in Industrial companies has a low level
of significance. Total means of the answers on the questionnaire statements were (2.790) which
are lower than (3.00).
7) Products cost: Means & Sd. were executed to the statement of products cost in Industrial
companies, ordered by statement importance, table no. (11) Show the results
Table (11)
Means and Std. of products cost Arranged by the most important statement to the less
Statement
no.
Std.
Deviati
on
Mean statements sig
24 0.437 2.963
Supply of raw materials delivered
accurately and correctly from the first
time.
1.
23 0.622 2.815 Materials received from the supplier in a
simple lowest cost procedure. 2.
22 0.724 2.731 The cost of inventories at the lowest
level. 3.
0.595 2.836 Total
This table indicates the attitudes of the sample towards questionnaire statements of process of
products cost in Industrial companies.
The above table indicates that products cost in Industrial companies has a low level of
significance. Total means of the answers on the questionnaire statements were (2.836) which are
lower than (3.00) for all and every statement of products cost.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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8) Level of quality: Means & Sd. were executed to the statement of level of quality in
Industrial companies, ordered by statement importance, table no. (12) Show the results
Table (12)
Means and Std. of level of quality Arranged by the most important statement to the less
Statement
no.
Std.
Deviation Mean statements sig
25 0.602 3.148 products are produced accurate and
precise at the first time 4.
27 0.718 2.852
Each worker is responsible of screening
and monitoring product before
delivered.
5.
26 0.751 2.778
Supply small quantities led to the
discovery and manufacturing problems
to be resolved immediately.
6.
0.690 2.926 Total
This table indicates the attitudes of the sample towards questionnaire statements of process of
level of quality in Industrial companies.
The above table indicates that level of quality in Industrial companies has a low level of
significance. Total means of the answers on the questionnaire statements were (2.926) which are
lower than (3.00).
The table also indicates that statement (25) had medium level of significance compared to other
statements and mean reaches (3.148). That indicates that the sample does not clearly sure about
the statements that (products are produced accurate and precise at the first time).
Hypothesis Test:
The First hypothesis:
There is significant positive relationship between applications of just in time system (JIT) and
products cost of Jordanian industrial companies.
To test this hypothesis, Regression was used to find out if there is significant positive
relationship between applications of just in time system (JIT) and products cost of Jordanian
industrial companies, table no. (13) Show the results
Table (13)
Regression (JIT) and products cost
Model Sum of squares sig f R Square R
Regression 1.267
0.004 9.809 0.282 0.531 Residual 3.229
Total 4.496
Table (13) indicates to test if there is significant positive relationship between applications of just
in time system (JIT) and products cost
The results show that there is positive significance, R Square was (0.282) it means the %28.2 of
the changes in the products cost is from the changes of (JIT), the Examined (F) value was equal
to (9.809) with possibility value (0.004) that it is lower than the specific value (0.05), and that
shows positive relationship.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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So we accept the hypothesis:
There is significant positive relationship between applications of just in time system (JIT) and
products cost.
The second hypothesis:
There is significant positive relationship between applications of just in time system (JIT) and
the level of quality of the product.
To test this hypothesis, Regression was used to find out if there is significant positive
relationship between applications of just in time system (JIT) and the level of quality of the
product, table no. (14) Show the results
Table (14)
Regression (JIT) and level of quality
Model Sum of squares sig f R Square R
Regression 0.875
0.018 6.390 0.204 0.451 Residual 3.422
Total 4.296
Table (13) indicates to test if there is significant positive relationship between applications of just
in time system (JIT) and level of quality.
The results show that there is positive significance, R Square was (0.204) it means the %20.4 of
the changes in the level of quality is from the changes of (JIT), the Examined (F) value was
equal to (6.390) with possibility value (0.018) that it is lower than the specific value (0.05), and
that shows positive relationship.
So we accept the hypothesis:
There is significant positive relationship between applications of just in time system (JIT) and
level of quality.
The third hypothesis:
There are significant differences in applied of just in time system (JIT) according to the company
size in Jordanian industrial companies.
To test this hypothesis, ONE WAY ANOVA was used to find out if there is a significant
deference at significant level (α≤0.05) in applied of just in time system (JIT) according to the
company size in Jordanian industrial companies.
Table (15)
ONE WAY ANOVA (JIT) according to the company size
ANOVA
JIT
.194 2 .097 .685 .514
3.407 24 .142
3.602 26
Betw een Groups
Within Groups
Total
Sum of
Squares df Mean Square F Sig.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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Table (15) indicates that there is a no significant deference at significant level (α≤0.05) in
applied of just in time system (JIT) according to the company size in Jordanian industrial
companies.
Significant level was (0.514) which is more than (0.05) calculated f was (0.685) which is less
than tabled (3.370).
So we reject the hypothesis:
There are no significant differences in applied of just in time system (JIT) according to the
company size in Jordanian industrial companies.
The forth hypothesis:
There are significant differences in applied of just in time system (JIT) according to the directors
of the company (Jordanian directors, foreign directors).
To test this hypothesis, ONE WAY ANOVA was used to find out if there is a significant
deference at significant level (α≤0.05) in applied of just in time system (JIT) according to the
directors of the company (Jordanian directors, foreign directors).
Table (16)
ONE WAY ANOVA (JIT) according to the directors
ANOVA
JIT
.198 1 .198 1.456 .239
3.403 25 .136
3.602 26
Betw een Groups
Within Groups
Total
Sum of
Squares df Mean Square F Sig.
Table (16) indicates that there is a no significant deference at significant level (α≤0.05) in
applied of just in time system (JIT) according to the directors of the company (Jordanian
directors, foreign directors).
Significant level was (0.239) which is more than (0.05) calculated f was (1.456) which is less
than tabled (3.370).
So we reject the hypothesis:
There are no significant differences in applied of just in time system (JIT) according to the
directors of the company (Jordanian directors, foreign directors).
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
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Chapter five
Results & recommendations
Results:
1. Industrial companies do not have significant awareness of JIT.
2. Remove waste in Industrial companies have a medium level of significance, The
companies do not use raw materials completely inept; the companies do not take
advantage of all working time of employees without wasting.
3. Inventory reduction in Industrial companies have a low level of significance, The
companies do not purchase raw materials in small quantities covering the daily
production scheduling, They do not purchase raw materials in small quantities to remedy
the overstock inventory.
4. Maintenance in Industrial companies have a medium level of significance, Workers do
not disclose all parts on the verge of destruction to be replaced, and they do not periodical
maintenance themselves.
5. Multi-skilled workers in Industrial companies have a low level of significance, The
companies do not adopts rotate work policy to give the multi-skilled workers, Workers
are not subject to internal and external courses to increase their skills.
6. time supply system in Industrial companies has a low level of significance, The
companies do not deals with suppliers use the (JIT) system, The companies do not
depends on at least three suppliers to supply basic raw material, Suppliers do not
participate in Companies meetings to carefully determine the specification and to earn
their trust.
7. products cost in Industrial companies has a low level of significance, The cost of
inventories is not at the lowest level, Materials do not received from the supplier in a
simple lowest cost procedure, Supply of raw materials do not delivered accurately and
correctly from the first time.
8. level of quality, level of quality in Industrial companies has a low level of significance,
companies do not supply small quantities led to the discovery and manufacturing
problems to be resolved immediately, Each worker is not responsible of screening and
monitoring product before delivered.
Hypothesis results:
1) There is significant positive relationship between applications of just in time system (JIT)
and products cost.
2) There is significant positive relationship between applications of just in time system (JIT)
and level of quality.
3) There are no significant differences in applied of just in time system (JIT) according to
the company size in Jordanian industrial companies.
4) There are no significant differences in applied of just in time system (JIT) according to
the directors of the company (Jordanian directors, foreign directors).
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
81
Recommendations:
1) Industrial companies should adopt just in time system (JIT) in their production; the
results shows that Industrial companies do not apply just in time system and that is
leading to maximize production cost and get the level of production quality to the
minimum.
2) Industrial companies should have better awareness of just in time system (JIT) and adopt
it to have the competition strength in the market.
3) Industrial companies have to reduce waste and to use raw materials completely inept, and
to take advantage of all working time of employees without wasting, in order to have
lower cost and better quality of products.
4) Industrial companies should have better awareness of the importance of Inventory
reduction, Preventive Maintenance, Multi-skilled workers, just in time supply system,
and adopt them to have the competition strength in the market.
5) Industrial companies must have production experts especially in applying just in time
system (JIT) this will lead these companies to better production and lower production
cost.
6) Researchers should apply more researches about just in time system (JIT) in Jordan
because of its benefits on companies' continuality.
References:
Books
1. Thomas E. Vollmann, 2005, 5 edition, Manufacturing Planning And Control For
Supply Chain Management, McGraw-Hill.
2. Jimmie Browne, 2000, Production Management Systems, McGraw-Hill
3. Harry E. Cook. 1997, Production Management, Chapman & Hall.
4. James H. Green, 1997, Production And Inventory Control , McGraw-Hill.
5. Michael Muchnik, 1992, Complete Guide To Plant Operation ,Prentice Hall.
6. Schroeder,R.G., 1985, Operation management, MC Graw-Hill Book company, New
York.
7. Schafer, Scott and Mrdi, Jack. (2005). Operations management, business process
approach pages Spreading. Translation: Suroor, Suroor Mareikh Publishing House,
Riyadh.
8. Garrison R., Noreen E. & Brewer P. (2004). Managerial Accounting. (11th ed.), London:
Irwin/mcgraw-hill.
9. Browne, J. (1988). Cost Management Systems. London: Addison-Wesley.
Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.3 (4), APRIL (2014) Online available at indianresearchjournals.com
82
Articles & thesis:
1- Polito, Tony; Watson, Kevin, „‟ Just-in-Time Under Fire: The Five Major Constraints Upon
JIT Practices „„, Journal of American Academy of Business, Cambridge , Vol. 9 Issue 1,
2006, p8-13.
2- Sale, M. L & Inman, R. A “Survey-based comparison of performance and change in
performance of firms using traditional manufacturing, JIT and TOC ”, International Journal of
Production Research, Vol. 41 Issue 4, 2003, pp829-844.
3- MOUTAZ KHOUJA, ‟‟ The impact of quality considerations on material flow in
two-stage Inventory systems”, International journal of production research ,
VOL. 41, NO. 7, 2003, p p 1533-1547. 4- Panchal, Vikas, Gupta, Amit, Tiwari, Dr.P.C., Rathi, Naveen, evaluation of just in
time (jit) elements in banking sector using Anova technique, International Journal of
Innovative Research in Science, Engineering and Technology ,Vol. 2, Issue 2,
February 2013 5- Al-yaquob, sana' nayef, (2009), the impact of applying just-in-time system to
maximize profits of industrial shareholding companies in Jordan, master degree
thesis, Middle East University, Jordan.
Appendix
Questionnaire
NPar Tests
One-Sam ple Kolm ogorov-Sm irnov Test
27
2.9223
.33808
.101
.101
-.075
.525
.946
N
Mean
Std. Deviation
Normal Parameters a,b
Absolute
Positive
Negative
Most Extreme
Dif ferences
Kolmogorov-Smirnov Z
Asymp. Sig. (2-tailed)
JIT
Test dis tribution is Normal.a.
Calculated f rom data.b.
RELIABILITY
/VARIABLES=VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006
VAR00007
VAR00008 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014
VAR00015
VAR00016 VAR00017 VAR00018 VAR00019 VAR00020 VAR00021 VAR00022
VAR00023
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83
VAR00024 VAR00025 VAR00026 VAR00027
/SCALE('ALL VARIABLES') ALL/MODEL=ALPHA.
Reliability
Scale: (JIT)
Case Process ing Summ ary
23 85.2
4 14.8
27 100.0
Valid
Excludeda
Total
Cases
N %
Listw ise deletion based on all
variables in the procedure.
a.
Reliability Statis tics
.883 27
Cronbach's
Alpha N of Items
DESCRIPTIVES
VARIABLES=VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006
VAR00007
VAR00008 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014
VAR00015
VAR00016 VAR00017 VAR00018 VAR00019 VAR00020 VAR00021 VAR00022
VAR00023
VAR00024 VAR00025 VAR00026 VAR00027
/STATISTICS=MEAN STDDEV MIN MAX .
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84
Descriptives
Descriptive Statis tics
27 2.00 4.00 3.0000 .62017
27 1.00 4.00 3.0741 .78082
27 2.00 4.00 3.0741 .67516
26 2.00 4.00 3.1154 .65280
27 1.00 4.00 3.2593 .71213
25 1.00 4.00 2.5600 1.04403
27 1.00 4.00 3.2963 .82345
27 1.00 4.00 2.7407 .76423
27 2.00 4.00 3.1852 .55726
27 2.00 4.00 3.1111 .64051
27 1.00 4.00 2.8889 .80064
27 1.00 4.00 2.4444 .80064
27 1.00 4.00 3.2222 .75107
27 1.00 4.00 2.9630 .80773
27 2.00 4.00 2.8889 .57735
27 2.00 4.00 3.1111 .64051
27 2.00 4.00 2.7037 .77533
27 2.00 4.00 2.5926 .63605
27 1.00 4.00 2.7037 .82345
27 2.00 4.00 2.8148 .68146
27 2.00 4.00 2.8519 .76980
26 1.00 4.00 2.7308 .72430
27 2.00 4.00 2.8148 .62247
27 2.00 4.00 2.9630 .43690
27 2.00 4.00 3.1481 .60152
27 1.00 4.00 2.7778 .75107
27 2.00 4.00 2.8519 .71810
23
VAR00001
VAR00002
VAR00003
VAR00004
VAR00005
VAR00006
VAR00007
VAR00008
VAR00009
VAR00010
VAR00011
VAR00012
VAR00013
VAR00014
VAR00015
VAR00016
VAR00017
VAR00018
VAR00019
VAR00020
VAR00021
VAR00022
VAR00023
VAR00024
VAR00025
VAR00026
VAR00027
Valid N (lis tw ise)
N Minimum Maximum Mean Std. Deviation
COMPUTE cost = MEAN(VAR00022,VAR00023,VAR00024) .
EXECUTE .
COMPUTE quality = MEAN(VAR00025,VAR00026,VAR00027) .
EXECUTE .
COMPUTE JIT =
MEAN(VAR00001,VAR00002,VAR00003,VAR00004,VAR00005,VAR00006
,VAR00007,VAR00008,VAR00009,VAR00010,VAR00011,VAR00012,VAR00013,VAR00014
,VAR00015,VAR00016,VAR00017,VAR00018,VAR00019,VAR00020,VAR00021) .
EXECUTE .
FREQUENCIES
VARIABLES=CO.SIZE Directors Job Experience
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85
/ORDER= ANALYSIS .
Frequencies
Statistics
27 27 27 27
0 0 0 0
Valid
Missing
N
CO.SIZE Directors Job Experience
Frequency Table
CO.SIZE
9 33.3 33.3 33.3
7 25.9 25.9 59.3
11 40.7 40.7 100.0
27 100.0 100.0
Very large
Large
Medium
Total
Valid
Frequency Percent Valid Percent
Cumulative
Percent
Directors
19 70.4 70.4 70.4
8 29.6 29.6 100.0
27 100.0 100.0
Jordanian
foreign
Total
Valid
Frequency Percent Valid Percent
Cumulative
Percent
Job
4 14.8 14.8 14.8
6 22.2 22.2 37.0
13 48.1 48.1 85.2
4 14.8 14.8 100.0
27 100.0 100.0
G.Manager
High management
Middle management
employee
Total
Valid
Frequency Percent Valid Percent
Cumulative
Percent
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86
Experience
4 14.8 14.8 14.8
3 11.1 11.1 25.9
2 7.4 7.4 33.3
18 66.7 66.7 100.0
27 100.0 100.0
Less than 5 years
5-10 times years
11-15 years
more than 15 years
Total
Valid
Frequency Percent Valid Percent
Cumulative
Percent
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS R ANOVA
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT cost
/METHOD=ENTER JIT .
Regression
Variables Enter ed/Removedb
JITa . Enter
Model
1
Variables
Entered
Variables
Removed Method
All requested variables entered.a.
Dependent Variable: costb.
Model Summ ary
.531a .282 .253 .35939
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
Predictors: (Constant), JITa.
ANOVAb
1.267 1 1.267 9.809 .004a
3.229 25 .129
4.496 26
Regression
Residual
Total
Model
1
Sum of
Squares df Mean Square F Sig.
Predictors: (Constant), JITa.
Dependent Variable: costb.
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87
Coefficientsa
1.106 .560 1.975 .059
.593 .189 .531 3.132 .004
(Constant)
JIT
Model
1
B Std. Error
Unstandardized
Coeff icients
Beta
Standardized
Coeff icients
t Sig.
Dependent Variable: costa.
REGRESSION
/MISSING LISTWISE
/STATISTICS COEFF OUTS R ANOVA
/CRITERIA=PIN(.05) POUT(.10)
/NOORIGIN
/DEPENDENT quality
/METHOD=ENTER JIT .
Regression
Variables Enter ed/Removedb
JITa . Enter
Model
1
Variables
Entered
Variables
Removed Method
All requested variables entered.a.
Dependent Variable: qualityb.
Model Summ ary
.451a .204 .172 .36996
Model
1
R R Square
Adjusted
R Square
Std. Error of
the Estimate
Predictors: (Constant), JITa.
ANOVAb
.875 1 .875 6.390 .018a
3.422 25 .137
4.296 26
Regression
Residual
Total
Model
1
Sum of
Squares df Mean Square F Sig.
Predictors: (Constant), JITa.
Dependent Variable: qualityb.
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88
Coefficientsa
1.480 .576 2.569 .017
.493 .195 .451 2.528 .018
(Constant)
JIT
Model
1
B Std. Error
Unstandardized
Coef f icients
Beta
Standardized
Coef f icients
t Sig.
Dependent Variable: qualitya.
ONEWAY
JIT BY CO.SIZE
/MISSING ANALYSIS .
One-way
ANOVA
JIT
.194 2 .097 .685 .514
3.407 24 .142
3.602 26
Betw een Groups
Within Groups
Total
Sum of
Squares df Mean Square F Sig.
ONEWAY
JIT BY Directors
/MISSING ANALYSIS .
One-way
ANOVA
JIT
.198 1 .198 1.456 .239
3.403 25 .136
3.602 26
Betw een Groups
Within Groups
Total
Sum of
Squares df Mean Square F Sig.