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Just in Time Implementation Issues in Indian Corrugated Packaging Industries An empirical study in Natioanl Capital Region (NCR) Nitin Kumar Upadhye Associate Professor, College of Business, University of Modern Sciences, Dubai, UAE E-mail: [email protected] S G Deshmukh Director, ABV Indian Institute of Information Technology & Management, Gwalior, India E-mail: [email protected] Suresh Garg Professor, Delhi Technological University, Delhi E-mail: [email protected] Durgesh Sharma Professor (ME Dept.), IMS Engineering College, Ghaziabad E-mail: [email protected] Abstract—Just in time is an advanced manufacturing philosophy, which is practiced all over the world by organizations to achieve excellence in their performance. As most of the Original Equipment Manufacturers (OEM) are managing their supplies on JIT basis, their vendors are under tremendous pressure to adopt JIT. The JIT principles seems easy to adopt, yet many organizations fail to implement it. The implementation of JIT requires a radical change in the way of working at all level of the organization starting from top management to maintaining good customer relations. Indian Corrugated Packaging Industries play a very important role especially at the final dispatch of the product. This research paper tries to find out the readiness of ICPI for the implementation of JIT. Also it tries to find out whether the type of company matters in the implementation of JIT. The survey was conducted in companies in National Capital Region (NCR) of India, mainly Delhi, Noida, Ghaziabad, Gurgaon and Faridabad. The implementation readiness of these companies based on company type was analyzed using analysis of variance (ANOVA). The result shows that there was a distinction between industries type (family owned, Private Limited and Limited) and level of JIT implementation. Further the Friedman test was used to find out the predominant principle in each type of the industries. The purpose of this study is to provide a roadmap to Indian Corrugated Packaging Industries to implement JIT successfully. The contribution of this paper is the identification of the implementation JIT issues for ICPI as well as the status of these companies based on their classification. The results of this study is matching with studies in other type of components, proving the universal nature of JIT principles. Keywords: JIT, JIT implementation, Indian Corrugated Packaging Industry, ANOVA, Friedman test I. INTRODUCTION In today’s competitive global business environment, the goal of all manufacturing systems is long-term survival. A manufacturing company’s survival in an increasingly competitive market closely depends upon its ability to produce highest quality product at lowest possible cost and in a timely manner with shortest possible lead-time. The booming Indian economy and a flourishing organized retail have raised the expectations that consumption of corrugated packaging will begin to expand again as the number and volume of goods packaged in corrugated increases. MNCs are demanding corrugated boxes of international standards as the pattern of buying the packaging is changing. Prices of corrugated sheet and corrugated boxes have remained low due to the overcapacity, manual operations and low productivity. Besides, transport constraints and high freight costs have meant that small to medium sized corrugated box plants are located near the customers. Strong competition and the high demands of consumer goods companies for just –in-time delivery together with high standards of product and service quality are turning the top end of corrugated-board box market in to a very tough place to be. [1]

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Page 1: IEOM 2015

Just in Time Implementation Issues in Indian Corrugated Packaging Industries An empirical study in Natioanl Capital Region (NCR)

Nitin Kumar Upadhye Associate Professor, College of Business,

University of Modern Sciences, Dubai, UAE E-mail: [email protected]

S G Deshmukh Director, ABV Indian Institute of Information Technology

& Management, Gwalior, India E-mail: [email protected]

Suresh Garg Professor, Delhi Technological University, Delhi

E-mail: [email protected]

Durgesh Sharma Professor (ME Dept.), IMS Engineering College, Ghaziabad

E-mail: [email protected]

Abstract—Just in time is an advanced manufacturing philosophy, which is practiced all over the world by organizations to achieve excellence in their performance. As most of the Original Equipment Manufacturers (OEM) are managing their supplies on JIT basis, their vendors are under tremendous pressure to adopt JIT. The JIT principles seems easy to adopt, yet many organizations fail to implement it. The implementation of JIT requires a radical change in the way of working at all level of the organization starting from top management to maintaining good customer relations. Indian Corrugated Packaging Industries play a very important role especially at the final dispatch of the product. This research paper tries to find out the readiness of ICPI for the implementation of JIT. Also it tries to find out whether the type of company matters in the implementation of JIT. The survey was conducted in companies in National Capital Region (NCR) of India, mainly Delhi, Noida, Ghaziabad, Gurgaon and Faridabad. The implementation readiness of these companies based on company type was analyzed using analysis of variance (ANOVA). The result shows that there was a distinction between industries type (family owned, Private Limited and Limited) and level of JIT implementation. Further the Friedman test was used to find out the predominant principle in each type of the industries. The purpose of this study is to provide a roadmap to Indian Corrugated Packaging Industries to implement JIT successfully. The contribution of this paper is the identification of the implementation JIT issues for ICPI as well as the

status of these companies based on their classification. The results of this study is matching with studies in other type of components, proving the universal nature of JIT principles.

Keywords: JIT, JIT implementation, Indian Corrugated Packaging Industry, ANOVA, Friedman test

I. INTRODUCTION In today’s competitive global business environment, the goal of all manufacturing systems is long-term survival. A manufacturing company’s survival in an increasingly competitive market closely depends upon its ability to produce highest quality product at lowest possible cost and in a timely manner with shortest possible lead-time. The booming Indian economy and a flourishing organized retail have raised the expectations that consumption of corrugated packaging will begin to expand again as the number and volume of goods packaged in corrugated increases. MNCs are demanding corrugated boxes of international standards as the pattern of buying the packaging is changing. Prices of corrugated sheet and corrugated boxes have remained low due to the overcapacity, manual operations and low productivity. Besides, transport constraints and high freight costs have meant that small to medium sized corrugated box plants are located near the customers. Strong competition and the high demands of consumer goods companies for just –in-time delivery together with high standards of product and service quality are turning the top end of corrugated-board box market in to a very tough place to be. [1]

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Today the challenge for the corrugated-board box market is cutthroat competition with high demand from FMCG for JIT delivery along with high standards of product and service quality. The orders come with a large variety of different boxes, different design and color scheme, with very short notice. The other challenges like complexity of a multi-stage production process and machine failures result in high inventories of finished goods stock. In such condition implementation of JIT principles will help ICPI to improve its efficiency as well as effectiveness of its entire supply chain management.

Indian corrugated packaging industries have not yet tested the full effects of popular JIT approach on performance of production system due to its limited implementation. Considering its potential in enhancing performance of organizations, investigation on the important JIT issues is essential. Studies in many industries had shown that JIT philosophy has the potential for increasing organization efficiency and effectiveness. However, JIT benefits do not just happen. Before an organization enjoys with the benefits of JIT, it must accept JIT as an organizational philosophy [2, 3]. It is also instrumental in reducing lead time, decreasing set up time, improving production quality, increasing productivity, and enhancing customer responsiveness, motivated by the potential benefits of successful implementation of JIT to the organizations and lack of research addressing the implementation problems in Indian context.

This research paper tries to find out the readiness of ICPI for the implementation of JIT. Also it tries to find out whether the size of company matters in the implementation of JIT. The survey was conducted in companies in National Capital Region (NCR) of India, mainly Delhi, Noida, Ghaziabad, Gurgaon and Faridabad. The implementation readiness of these companies based on company type was analyzed using analysis of variance (ANOVA). The result shows that there was a distinction between industries size (family owned, Private Limited and Limited)) and JIT issues. Further the Friedman test was used to find out the predominant principle in each type of the industries.

II. JUST IN TIME After World War II Japanese manufacturers were faced with the dilemma of vast shortages of material, financial, and human resources. The problems that Japanese manufacturers were faced with differed from those of their western counterparts. These conditions resulted in the birth of the "JIT" production system

concept. The term "JIT” as, it denotes a system that utilizes less, in terms of all inputs, to create the same outputs as those created by a traditional mass production system, while contributing increased varieties for the end customer [4] The JIT advocates the elimination of waste by simplifying production processes, reductions in set up times, controlling material flows, and emphasizing preventive maintenance are seen as ways by which excess inventories can be reduced or eliminated, and resources utilized more efficiently [5]. Implementation of JIT which results in the reduction of this wastage (muda), needs the development, implementation and continuous execution of a number of key practices [6 & 7]. JIT results both in terms of the environmental and cost benefits of sustainability [8]. Continuous training for all workers is a must to help them understand the philosophy, concept and techniques of JIT [9]. The result of a survey in manufacturing industries indicated JIT implementation had significant positive effects on the set of standard financial ratios [10]. JIT adoption leads to improvement in firm performance as measured by Return on Investment [11] The automotive industry it appears that some manufacturers may be forcing suppliers to hold inventories that they have traditionally held and that the location of inventories has simply shifted as is suggested by the lump in the snake analogy [12]. Customer service requirements of time and accuracy, delivered against a backdrop of cost control, flexibility and agility, fleet utilization and human capital resource utilization are the key factors for an effective and efficient logistics system [13]. During the literature review it is observed that there is a relative level of consensus about the various JIT implementation issues. It is evident that JIT is the need of hour. Just in time is an advanced manufacturing philosophy, which is practiced all over the world by organizations to achieve excellence in their performance. As most of the Original Equipment Manufacturers are managing their supplies on JIT basis, the suppliers are under tremendous pressure to adopt JIT. The JIT principles seems easy to adopt yet many organizations fail to implement it. The implementation of JIT requires a radical change in the way of working at all level of the organization starting from top management to maintaining good customer relations. Indian Corrugated Packaging Industries play a very important role especially at the final dispatch of the product.

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III. INDIAN CORRIUGATED PACKAGING INDUSTRIES

Current Packaging Sector & Growth in India Packaging industry is an important sector, adding value to the various manufacturing sectors including agriculture and FMCG segments. The technology and innovation in this sector is improving day-by-day. The global packaging industry is currently valued at US $ 433 billion and is expected to grow to US $ 820 billion by 2016. This growth is primarily driven by factors like growing urbanization, investment in housing and construction, a burgeoning healthcare sector and rapid development in the emerging economies like China, India, Brazil Russia and few other East European Economies. The consumer market dominates the global packaging industry and accounts for an estimated 70% of the sales, while industrial application accounting for remaining 30% of it. Indian packaging Industry is currently valued at US $ 24.6 billion and ranks 11th in the world [14] The Indian Packaging Industry is expected to grow at 18% per year from its current 15% and is expected to grow to US$ 32.5 billion by 2015. The packaging Industry is poised to grow rapidly due to increased use of innovative packaging equipment’s and increased demand for flexible packaging. The booming Indian economy and a flourishing organized retail have raised the expectations that consumption of corrugated packaging will begin to expand again as the number and volume of goods packaged in corrugated increases. MNCs are demanding corrugated boxes of international standards and the pattern of buying the packaging is changing.

Prices of corrugated sheet and converted boxes have remained low due to the over-capacity, manual operations and low productivity. Besides, transport constraints and high freight costs have meant that small to medium sized corrugated box plants are located near the customers.

The over 4,000 corrugated board and sheet plants are highly labor-intensive, employing over half a million people – both directly and indirectly. The industry is converting about 2 million tons of Kraft paper into corrugated boxes. Factories are spread-out in all parts of India, even in the remote industrially backward areas.

This present scenario is already being challenged by the sweeping changes that are beginning to take shape. More and more in-line automatic plants are being set

up, as corrugated box makers gear up to meet the new demands for high precision boxes with attractive graphics and large integrated production capacities [15] Future Trends

• Increasing demand and high volumes will trigger consolidation and setting up of large automatic plants.

• Inline Automatic Board and Box making plants will ease out the present semi-automatic production processes.

• Deployment of Folder Gluers, Rotary Die cutters will be on the increase.

• Use of corrugated for display/promotional packs, POPs and dispensers.

• Advances in multicolor, flexo printing will facilitate in-house flexo printing and do away with screen printing, contract printing on offset presses.

• The emergence of e-commerce, reverse bidding, concept of First Pak will give large scale units the advantage of competitiveness and the concept of locating corrugated box units nearer to user locations will become obsolete.

• Large Corporates and Bulk users of corrugated boxes looking for single/multiple alternative vendors – capable of meeting stringent specifications, offering alternative designs, test-in-time deliveries at optimum cost.

• Growing interest in machines made in China, Taiwan and other Asian countries.

Many machinery manufacturers entering into alliances with Chinese, Taiwanese manufacturers for manufacturing/marketing.

IV. RESEARCH METHODOLOGY JIT imposes a set of requirements on the traditional work culture. Work culture is developed through the way of working of people, their values and ethics towards their work, and on other side technology and social cultural forces jointly determine managerial style and practices. The work culture plays a significant role in successful implementation of JIT. Workers and managers of different countries think differently, according to their social and cultural

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principles. The implementation of JIT in Indian industries is different from Western countries. It was decided to seek the responses to understand the perceptions about various issues for the implementation of JIT. So the methodology based on questionnaire survey is used for the study. The target persons were the key persons working in corrugating packaging industries located in NCR region.

The list consists of companies (small

companies), which are managed by family, dedicated vendor to companies or original equipment manufacturers. Companies regularly. The private limited companies and limited companies have bigger setup than the family owned. The personnel involved in the survey are those from managing directors, manufacturing/production managers and executives, and also quality managers and executives. A seven page questionnaire was prepared in three sections, the first section consist of the information about the organization , the second section consists of his opinion about key issues related with JIT; leadership, manufacturing operations and processes, TPM, TQM and partnering with suppliers/customers and environmental practices, the third section consists of opinion of participants about performance measurement. The database was obtained from Federation of Corrugated Box manufacturers (FCBM) of India.

The questions are set up on a five-point Likert scale to measure the extent of implementation of the practices described by each of the items. The scale ranged from none (1) to complete implementation (5). Intermediate scale values were referenced too little implementation (2), some implementation (3), and extensive implementation (4).

A prime consideration in design of the survey

instrument was keeping it short and focused in order to obtain an adequate response rate. The questionnaire was developed by modifying and eliminating some variables after a pilot survey. Experts of the JIT from Industry, academics, and consulting agencies were consulted. The questionnaire format was modified with minor changes based on the comments and feedback. The remarks from the experts were positive and acceptable for data collection. The questionnaire was then ready for data collection.

V. RESULTS AND DISCUSSION The questionnaire was posted to 150 corrugated packaging industries located in NCR region i.e. Delhi, Noida, Ghaziabad, Faridabad and Gurgaon. Initially, response was poor, to get more response reminders were sent to managers by mobile phones while some managers were personally interviewed. In all, 67 responses were obtained, out of 59 responses 8 were excluded from study due to incomplete responses. At last, 98 responses were found suitable for study, making response rate almost 39 percent.

A- Company Background

The first aspect to be investigated was the

general background of the companies involved. Table 1 shows the general background of the companies such as types of product produced, company age, company ownership and company size (based on the number of employees).

Table 1: Detailed Information of the Companies

involved in the study (N = 59)

S. No.

Particulars Profile Frequency

1 Ownership A. Family owned business B. Private limited C. Limited

36

16 07

2 Number of employees

A. Below 50 B. Between 50 – 100 C. Above 100

30 20 09

3 Variety of products produced

A. Simple boxes B. Printed boxes C. Duplex boxes D. Diversified

13 09 10 27

4 Production

quantity/annum

A. Below 50,000 boxes B. Between 50,000 – 1 Lakh boxes C. Above 1 Lakh boxes

11

35

13

5 Sales value in

rupees/annum

A. Below 50 Lakh B. Between 50 Lakh – 1 Crore C. Above 1 Crore

09 41

09

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As shown in Table 1, the most of the respondent companies were managed as a family business (61.02%), while Private Limited companies are 27.12 % and Limited companies were 11.86 %. This indicates that majority companies are traditionally managed.

B- OBJECTIVE

The objectives of the study were framed as under: 1. To find out the readiness of ICPI for the implementation of JIT, based on industry type, 2. To find out the predominant JIT issues for the Family owned (A), Private Limited (B) and Limited (C) companies.

C- STATISTICAL ANALYSIS RESULTS H0-1: There is no significant difference between implementation status of JIT principles and industry type i.e. Family owned (A), Private Limited (B) and Limited (C) companies. Table 2 show the difference in the JIT implementation status provides the actual results from the independent t-test and Levine's Test for Equality of Variances. Since all the p values are less than 0.05 at 5 percent level of significance null hypothesis H0-1 was rejected. The results revealed that there was a significant difference among the implementation of JIT and industries type in ICPI The opinion from Limited companies (C) for the issue of Leadership was found to be excellent with a mean value 5.0000 in comparison with private limited (B) and family owned companies (A) 4.23 and 3.95. This indicates that in traditional environment owners consider the employees responsible for all problems, and thinking they don’t have any role in the improvement process. This kind of mindset is hindering any kind of improvement processes. But the good sign is that all “A” companies are not thinking in the same line. Many traditionally run companies are adopting advanced manufacturing philosophies into their work area. For Leadership issue the t-value is 7.978 and p- value 0.001. Since the p-value was significant at 1% level of significance results exposed that there is a significant difference among the leadership style and type of company. The focus on employee teamwork and training in C companies was found to be superior with mean value 4.87, 3.92 for B type and lower for A with the mean value 3.45. This highlights the involvement of employees is better in an organization with proper

vision, mission and rules and regulations. The t-value was 3.245 and p- value was 0.005. Since the p-value was significant at 5% level of significance results exposed that there is a significance difference between the employee teamwork and training. The mean value for use of Information and communication technology in C type companies was found to be higher with the value 3.95 when compare to B type with the mean value 3.40 and 1.87 for A type companies. It shows that still small companies are not using ICT in its day to day operations. Table 2: One way ANOVA for JIT implementation status of these companies based on their classification Sr. No.

JIT Issues Company Type

Mean

Std. Dev.

t- value

p-value

01 Leadership (J-1)

A 3.95 0.699 7.978 0.001 B 4.23 0.511 C 5.00 0.000

02 Employee teamwork and training (J-2)

A 3.45 0.546 3.245 0.005

B 3.92 0.499 C 4.87 0.526

03 Use of Information & Communication Technology (J-3)

A 1.87 0.925 8.645 0.001 B 3.40 0.825 C 3.95 0.497

04 Environmental awareness (J-4)

A 1.54 0.875 11.003 0.001 B 2.63 0.723 C 4.10 0.537

05 Customer relationship (J-5)

A 2.69 0.823 6.145 0.004 B 3.54 0.725 C 4.65 0.765

06 Supplier relationship (J-6)

A 2.23 0.799 6.159 0.004 B 3.12 0.989 C 4.20 0.998

07 Total Productivity Maintenance (J-7)

A 1.69 0.986 7.542 0.004 B 3.01 0.967 C 3.82 0.564

08 Improved operation and processes (J-8)

A 3.46 0.765 13.012 0.001 B 4.10 0.564 C 5.00 0.000

09 Total Quality management (J-9)

A 3.70 0.496 10.097 0.001 B 4.10 0.397 C 4.82 0.324

10 Automation (J-10)

A 1.96 0.867 11.767 0.001

B 2.23 0.634 C 3.26 0.527

To implement JIT use of ICT helps a lot so it is advisable if small companies also use information and communication technology tools and software their effectiveness and efficiency will increase. [16] (NU) The analysis shows that there is a significant difference between use of ICT in types of companies with the t- value 8.645 and p-value < 0.001.

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The focus on wastage due to environmental awareness in C Companies were with the mean value 4.10, for B and A companies the mean value was found to be 2.63 and 1.54. The findings indicate that the issue of environmental issues is taken seriously in bigger companies, and in small companies this issue is having less importance. The t- value was 11.003 and p-value < 0.001. Since the p-value was significant at 1% level of significance results shows that there is a significant different among the environmental awareness and industries type. The mean value for customer relationship in C companies was 4.65 and the mean value for B and A type companies 3.54 and 2.69. This result shows that more emphasis is given in bigger organizations to develop a long relationship with customers compared to small one. There is a significant difference between CRM and type of companies size since the t-value 6.145 and the p-value 0.004 i.e. 0.05 at 5 percent level of significance. The mean value for supplier relationship in C companies was 4.20 and the mean value for B and A type companies 3.12 and 2.23. This result shows that more emphasis is given in bigger organizations to develop a long relationship with supplier compared to small one. There is a significant difference between Supplier relationship and type of companies size since the t-value 6.159 and the p-value 0.004 i.e. 0.05 at 5 percent level of significance. The principles of total productive maintenance (TPM) are not much popular in ICPI the mean value of 3.82 for C type of companies while for B and A companies were 3.01 and 1.69. It clearly indicates that machine maintenance is not given that much importance. The t-value was found to be 7.542 and p-value 0.004. Since the p-value was significant at 5% level of significance results shows that there is a significant difference among the implementation of TPM and type of company. It was noted that improvement in operations and processes is done on continual basis in the C type of organizations with the mean value 5.0000 whereas in B and A companies were found to be with the mean value of 4.10 and 3.46. It shows that all types of companies are putting focus on improved processes and operations. The t-value was found to be 13.012 and p-value 0.001. Since the p-value was significant at 1% level of significance results shows that there is a significant difference among the improved operations and processes and company type.

The focus of quality is increasing day by day and it is reflected in the survey results the C type companies adopted it with mean value of 4.82, while the mean value of B and a company’s were 4.1 and 3.46 respectively. The t-value was found to be 10.097 and p- value was 0.001 for integrated functions. Since the p-value was significant at 1% level of significance results suggested that hat there is a significant difference among the TQM practices among type of companies. For automations it is observed that it corrugated packaging industry is at large depending on manual work, as the mean value for C companies was found to be 3.26, the mean value 2.23 and 1.96 were found for B and A companies. The information revealed that there is more scope for automation, but looking to huge investment involved for it many companies are not addressing this issue presently. The t-value was found to be 11.67 and p- value was 0.001 for integrated functions. Since the p-value was significant at 1% level of significance results exposed that there is a significant difference among the automation and type of company. H-0-2: The perception of respondents on JIT implementation in family owned companies was found to be almost similar for all the respondents. Friedman’s test was performed to identify the intensity level of the respondents towards JIT implementation. Table 3 shows Friedman’s mean rank value lies between 2.15 and 7.84 chi square value is 234.129 which is significant at one percent level. So, the researcher rejects the hypothesis (H0-2). It indicates that respondent’s perception significantly varied to the JIT implementation in family owned companies. Further, Friedman’s multiple comparison tests was applied to identify the highest adopting JIT principles. The test results grouped the ten issues into three categories. In that, leadership and employee teamwork and training plays a foremost role towards JIT implementation and it is placed in the first place. The improved operation and processes, total quality of management and customer relationship implemented with priority in the family owned companies and fall in the second level. The supplier relationship, use of ICT, Total productive maintenance and automations comes under last level and it was inferred that A type of companies had addresses these four issues with less importance.

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It was observed from the table that most of the family owned companies were focusing on leadership and employee teamwork as well as training to achieve JIT. As the small companies are maintaining their stocks and supplying to their limited customers the effect of JIT deliveries is not taken seriously, but as the result indicates the small companies are also aware of the changes and gearing up to answer the challenges of competitive market H0-3: Respondents perception on JIT implementation issues in Limited companies was found to be similar for all the respondents. (Table 4) To categorize the perceptions of the respondents towards JIT implementation issues Friedman’s test was applied and tabulated in table 4. Friedman’s mean value ranges between 2.12 and 7.62. Chi square value is 90.234 and p-value was found to be significant at one percent level. Table 3: Respondent’s Perception about JIT in A type companies (i.e. Family owned companies) JIT Issues

Mean

Std. Dev

Friedman’s test mean rank value

Chi square value

P value

Friedman Posthoc Comparison Result-value

Leadership (J-1)

3.95 0.699 7.84

234.129

<0.01

J-1 & J-2 > J-8, J-9 and J-5 > J-6, J-3, J-7, J-10 and J-4

Employee teamwork and training (J-2)

3.45 0.546 7.16

Use of ICT (J-3)

1.87 0.925 2.74

Environmental issues (J-4)

1.54 0.875 2.15

Customer relationship (J-5)

2.69 0.823 3.97

Supplier relationship (J-6)

2.23 0.799 3.25

TPM (J-7)

1.69 0.986 2.56

Improved operation & processes (J-8)

3.46 0.765 5.45

TQM (J-9)

3.70 0.796 4.62

Automation (J-10)

1.96 0.867 2.19

Hence, the hypothesis (H0-3) was rejected. It indicates that respondents� perception significantly varied to

the JIT implementation issues. The Friedman’s multiple comparison tests are applied to identify the predominant principles towards the implementation of JIT. The test results grouped the ten issues into three categories. In that, leadership and employee teamwork and training plays a foremost role towards JIT implementation and it is placed in the first place. The improved operation and processes, total quality of management and customer relationship, the supplier relationship and use of ICT, were implemented with priority in the Limited companies and fall in the second level. Total productive maintenance and automations comes under last level and it was inferred that A type of companies had addresses these four issues with less importance. Table 4: Respondent’s Perception about JIT in B type companies (i.e. Private Limited Companies) JIT Issues

Mean

Std. Dev

Friedman’s test mean rank value

Chi square valve

P value

Friedman Posthoc Comparison Result-value

Leadership (J-1)

4.23 0.511 7.62 90.234

< 0.01

J-1 & J-2 > J-8, J-9 and J-5, J-6, J-3 >

J-7, J-10 and J-4

Employee teamwork and training (J-2)

3.92 0.499 6.97

Use of ICT (J-3)

3.40 0.825 3.39

Environmental issues (J-4)

2.63 0.723 2.12

Customer relationship (J-5)

3.54 0.725 3.46

Supplier relationship (J-6)

3.12 0.989 3.41

TPM (J-7)

3.01 0.967 3.01

Improved operation & processes (J-8)

4.10 0.564 5.39

TQM (J-9)

4.10 0.647 4.82

Automation (J-10)

2.23 0.634 5.35

H0-4: Respondents perception on JIT implementation in Limited companies was found to be similar for all the respondents. Friedman’s test was performed to identify the intensity level of the respondents towards lean production principles. Table 5 shows Friedman’s mean rank value lies between 3.10 and 7.89 and chi

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square value is 36.12, which is significant at one percent level. So, the hypothesis (H0-4) was rejected. It indicates that respondents� perception significantly varied to the JIT implementation in Limited companies i.e. bigger companies. Further, Friedman’s multiple comparison tests is applied to identify the highest contributing JIT implementation issues. The test results grouped the ten issues into three categories. In that, leadership and employee teamwork and training plays a foremost role towards JIT implementation and it is placed in the first place. The improved operation and processes, total quality of management and customer relationship, the supplier relationship and use of ICT, were implemented with priority in the Limited companies and fall in the second level. Total productive maintenance and automations comes under last level and it was inferred that A type of companies had addresses these four issues with less importance. Table 5: Respondents Perception about JIT in C type companies (i.e. Limited companies) JIT Issues

Mean

Std. Dev

Friedman’s test mean rank value

Chi square value

P value

Friedman Posthoc Comparison Result-value

Leadership (J-1)

5.00 0.000 7.89 36.12

<0.01

J-1 & J-2 > J-8, J-9 and J-5, J-6, J-3 >

J-7, J-10 and J-4

Employee teamwork and training (J-2)

4.87 0.526 7.45

Use of ICT (J-3)

3.95 0.497 3.54

Environmental issues (J-4)

4.10 0.537 3.10

Customer relationship (J-5)

4.65 0.765 4.02

Supplier relationship (J-6)

4.20 0.998 3.94

TPM (J-7)

3.82 0.564 3.40

Improved operation & processes (J-8)

5.00 0.000 6.89

TQM (J-9)

4.22 0.564 7.10

Automation (J-10)

3.26 0.527 3.40

VI. CONCLUSION

The purpose of this study is to provide a roadmap to Indian Corrugated Packaging Industries to implement JIT successfully. The contribution of this paper is the identification of the implementation JIT issues for ICPI as well as the status of these companies based on their classification. Similar study for ICPI is not observed in literature. As packaging products are C type of inventory and hence less attention is given in OEM, but for 100 % implementation of JIT it is necessary that all suppliers should follow JIT in their operations also. The results of this study is matching with studies in other type of components, proving the universal nature of JIT principles. The implementation of JIT in corrugated packaging industries as perceived by the key persons, has a significant difference with the type of the company (family owned i.e. small, private limited i.e. middle level and Limited companies the bigger one). It was interesting to note that all corrugated packaging companies are aware of the JIT deliveries and in a process to implement the JIT in their operations. Leadership is considered as highest issue for the implementation followed by employee teamwork and training, improvement in processes and operations along with TQM. [17] Effective communication, top management’s commitment and training are necessary for implementing JIT [18, 19]. This shows that Indian corrugated packaging companies are ready to face the challenge of globalization and to respond to the Prime Minister of India Mr. Narendra Modi’s dream of “Make in India”. The limitation of the study, that these data were collected from industries located in National capital Region and does not repre4sent the entire Indian corrugated packaging industries. It is recommended that the study should be conducted at national level.

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References: [1] Darley,V. Sanders,D.& Tessin, P.V., .2004, “An agent-based model of a corrugated box factory: The tradeoff between finished finished-goods stock and on-time-full delivery” In: H. Coelho and B. Espinasse, editors, Proceedings of the fifth workshop on Agent-Based simulation,pages:17-22. [2] Garg, S., Vrat, P., Kanda, A. & Dua, B.B., 2003. Aspects of Flexibility & Quality in Indian Manufacturing Management Practices: a Survey. International Journal Manufacturing Technology & Management, Vol. 5, Issue 5/6, pp. 443-451. [3] Benders, J. & Morita, M., 2004. Changes in Toyota Motor�s Operations Management. International Journal of Production Research, Vol. 42, Issue 3, pp. 433-444. [4] Womack, J.P, et al, 1990. The machine that changed the world. Canada, Macmillan publishing company. [5] Kannan V. and Tan K., 2005. Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance. The International Journal of Management Science, Vol. 33, pp. 153-162. [6] Chan, H. K., Yin, S. & Chan, F. T. S., 2010 'Implementing just-in-time philosophy to reverse logistics systems: a review', International Journal of Production Research, Vol. 48, Issue 21, pp. 6293-6313. [7] Lai, K.-h. & Cheng, T. C. E., 2009 Just-in-time logistics. Farnham, England; Burlington, VT: Gower [8] Palevich, R., 2012 The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies. FT Press. [9] Garg S., Vrat P. & Kanda A., 1994. Work Culture in JIT Environment. Productivity, Vol. 35, Issue 3, pp 463-466. [10] Boyd, D.T., Kronk, L. and Skinner, R., 2002, “The effects of just-in-time systems on financial accounting metrics”, Industrial Management & Data Systems, Vol. 102 No. 3, pp. 153-64 [11] Maiga, A.S. & Jacobs, F.A., 2009 “JIT performance effects; a research note” Advances in Accounting, incorporating Advances in International Accounting Volume 25, pp. 183–189. [12] John F. Kros, J.F., Falasca, M. & Nadler, A.S., 2006 Impact of just-in-time inventory systems on OEM suppliers, Industrial Management & Data, Systems, Vol. 106 No. 2, 2006, pp. 224-241 [13] Coimbra, A. E., 2013 Kaizen in Logistics & Supply Chains. McGraw Hill Education, London. [14] http://www.iip-in.com [15] http://www.fcbm.org [16] Upadhye, N., Deshmukh, S.G. and Garg, S, 2010 “Lean Manufacturing in Biscuit Manufacturing Plant: A Case” International Journal of Advanced Operations Management, Vol. 2, No.1/2 pp. 108 – 139. [17] Upadhye, N., Deshmukh, S.G. & Garg, S. 2011 “Interpretive Structural Modeling for Implementation issues of Lean Manufacturing System” International Journal of

Modeling in Operations Management, Vol. 1, No. 4., pp. 311343. [18] Kaynak H. & Pagán J.E., 2003. Just-in-Time Purchasing & Technical Efficiency in the US Manufacturing Sector. International Journal of Production Research Vol. 41, Issue 1, pp 1-14. [19] Abdallah, A.B. & Matsui, Y., 2007 “The relationship between JIT production and Manufacturing strategy and their impact on JIT performance, POMS 18th annual conference, Dallas, Texas, U.S.A.

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Dr. Nitin Kumar Upadhye

Dr. Nitin Kumar Upadhye is Associate Professor, at College of Business, University of Modern Sciences, Dubai. He has worked with Kirloskar and Tata group companies in manufacturing functions for twenty years at supervisory and managerial level. He worked in various institutions affiliated with UPTU and Amity University in NCR as Associate Professor / Professor during 2002 to 2014. He has published more than 30 research papers in International and national journals / conferences. His research interest are lean manufacturing, total quality management, supply chain management, sustainable development. Dr. Upadhye is Life Member of Institution of Engineers (India), Kolkata and Indian Institution of Industrial Engineers, Mumbai.

Dr. S G Deshmukh is currently the Director of ABV-Indian Institute of Information Technology & Management Gwalior and a professor (on Lien) at IIT Delhi. He has more than 25 years of teaching and research experience. He has authored/Co-authored many books including a book on Supply Chain Management. He has been a consultant to many leading organizations. His research interest includes operations management including modeling and analysis of supply chain and quality issues.

Dr. Suresh Garg is Dean (Academics) and Professor of Supply Chain Management and Quantitative Techniques at Delhi Technological University (Formerly Delhi College of Engineering). Prof. Garg has more than 20 years of experience in industry (Hero Honda Motors Ltd.), teaching and research. His teaching and research areas include Supply Chain Management, Manufacturing Process Automation and Technology Management, Operations Management, Materials Management, Operations Research, Manufacturing Strategy, Production Planning and Control etc. He has guided Nine PhD thesis and five others are in progress. He has published 140 research papers including 44 in International Journals. Prof. Garg is member of the Editorial Boards of several International and National journals. He is reviewer of research papers of International Journals, Conferences. He has visited Chile and USA to present paper and visit Universities.

Dr. Durgesh Sharma

Dr. Durgesh Sharma is a Professor in Mechanical Engineering Department at IMS engineering college, Ghaziabad. India. He has close association with SMEs in India and Abroad for the last 25 years. He has published 31 papers in International / National Journals and conferences. His areas of interest include: Flexible Manufacturing system, CAD/CAM, JIT, Internationalization of SMEs, ICT applications for SMEs and Shop floor control.

Dr. S G Deshmukh

Dr. Suresh Garg