Jit in Indian Automobile Industry

Topics: Maruti Suzuki, Lean manufacturing, Automobile industry in India Pages: 15 (4852 words) Published: January 23, 2012

Just In Time: The traditional concepts of Quality and customer satisfaction have been challenged in the recent years. Customer choices and perceptions have also been changing continuously. Japanese manufacturers were the first to meet these challenges by introducing many innovations in manufacturing systems and management, one of which is the philosophy of “Just in Time”. Just-in-time (JIT) refers to a collection of practices that is designed to eliminate waste and achieve manufacturing excellence. These organizational practices encompass the entire logistics flow of materials from purchasing through production and distribution. The elements of JIT may include shared product design with suppliers and customers, movement toward single sourcing, proximate suppliers and customers, reduced set-up times, preventive maintenance, reliance on analytic tools to identify sources of defects and plant optimization layout (re)configurations, among others Just-in-time (JIT) manufacturing systems have attracted the attention of industries all over the world. The perceptible impact of JIT lies in attaining productivity and quality standards. The real challenge before Indian managers is to establish priorities among potential JIT techniques to achieve best possible advantage of JIT implementation in Indian industries.. With the variety of products on offer increasing with customization and evolving customer needs, it is but important that a manufacturing facility embraces the advantages of JIT in making the operations lean and flexible. Indian Automobile Industry: India currently has approximately 40 million vehicles. . In February 2009, monthly sales of passenger cars in India exceeded 100,000 units. Current low penetration, rising prosperity and the increasing affordability of private vehicles along with importance to exports offer a healthy prospectus for the Indian automobile industry. (Source: http://www.kpmg.de/docs/Auto_survey.pdf) Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, have expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. Due to strong Global competition Indian companies started focusing on adopting new techniques and technologies which enabled manufactures to improve their processes and products JIT IN AUTOMOBILE INDUSTRY OF OTHER COUNTRIES

Many countries have got leverage by implementing JIT techniques in their respective automobile industries. Peter Turnbul, [1] analyzes the trends in the UK automotive industry during the 1980’s, giving special focus to the adoption of JIT and TQM principles. This includes development from within the organization and relations between suppliers. Also the implications of adopting Japanese techniques on Information systems have also been looked into. It was found out in the study that Japan was way ahead of UK and US in terms of productivity and Quality in the cars manufactured due to successful implementation of JIT and TQM techniques and US and UK companies are gradually bridging this gap. Bo Hou, [2] conducted a research on the benefits and difficulties faced in implementing JIT for an automotive company in China. An international automotive company with factory located in China was taken for the Case study, examining the pre and post JIT implementation experiences. In order to collect data Semi-structured interviews were organized. Most interviewee’s support that proper design of information systems could assist JIT systems. According to the interviews, Kanban is a primary management method in the case company’s JIT model. It was found after the interviews that inventory can be maintained at a reasonably low level. Performance indicators have been employed to examine the achievement of suppliers in quality, on-time...

References: 15) Shishir Bhat, (2008), “Cellular manufacturing-the heart of Lean manufacturing”, Advances in Production Engineering and Management, Vol 3 , No 4
16) B.Vijaya Ramnath,C
19) KPMG (2006), “Indian Automotive Supply Chain KPMG”
20) http://amitsinghbisht.articlesbase.com/marketing-articles/maruti-udyog-limited-managing-competition-successfully-723310.html
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