The Role of Just-in-Time Implementation in Relation to Performance: an Exploratory Study

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THE ROLE OF JUST-IN-TIME IMPLEMENTATION IN RELATION TO PERFORMANCE: AN EXPLORATORY STUDY

By Che Ruhana Isa (PhD)* Tay Yew Keong Faculty of Business & Accountancy University of Malaya

ABSTRACT This study investigates the relationship between the level of just-in-time (JIT) implementation and performance. The study employed self-administered questionnaire survey to collect data from Malaysian manufacturing companies. The statistical tests provide empirical evidence to support the predictions that the level of JIT implementation is related to perceived performance. The results reveal that the level of JIT implementation is positively related to both financial and non financial performance.

*Corresponding author email: cruhana@um.edu.my

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THE ROLE OF JUST-IN-TIME IMPLEMENTATION IN RELATION TO PERFORMANCE: AN EXPLORATORY STUDY

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INTRODUCTION

Over the last two decades, firms globally are facing increasing pressures to attain and sustain their competitive position and performance. To survive in in today’s dynamic and competitive markets, firms need to come up with strategies consistent with its environmental demands for efficiency, effectiveness and customer responsiveness. In view of the escalating threats from global players, especially those from China, Malaysian manufacturing firms are compelled to continuously review their strategies and devise plans to improve their operations if they were to survive and prosper. Currently, products from China have flooded the Malaysian market at very competitive prices and for the Malaysian manufacturers to counter the impending threats successfully; they need to be more efficient in their operations so that their manufacturing performance could be improved. One of the strategies to improve manufacturing performance is adoption of worldclass, lean and integrated manufacturing strategies such as just-in-time (JIT) system (Fullerton & McWatters, 2002). Some of the benefits of JIT would allow companies to



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