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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.

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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.

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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?

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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)

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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.

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- 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)

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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.

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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

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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

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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

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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

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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

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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.

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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.

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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.

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79

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).

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80

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).

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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.

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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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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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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.