Journal of Scientific & Industrial Research

Vol 63, August 2004, pp.655-662

JIT practices in Indian context: A survey

Vikas Kumar*, Dixit Garg** and N P Mehta**
Department of Mechanical Engineering, Y M C A Institute of Engineering, Faridabad 121 006
**Mechanical Engineering Department, National Institute of Technology, Kuruksherta 136 119
Received 25 November 2003; accepted 15 April 2004
This paper examines the implementation of Just-in-Time (JIT) based managerial philosophy in the Indian industries.
Specifically, JIT elements, JIT benefits and reasons for slow implementation of JIT in Indian industries are investigated
through a survey. The results of this survey support the notion that JIT has potential to increase the organizational performance of Indian industries. However, to achieve this potential, Indian industry must be willing to modify their procedures and
operations. Much has been written regarding the positive effect of JIT on performance of production system. But, the negative impact of JIT on workers and production system are not clear. The disadvantages of JIT production system are therefore
highlighted here.
Keywords: Just-in-Time (JIT), Implementation, Elements, Benefits.

Introduction
Increasing international competition has forced the
multinational companies to seek new ways to develop
a competitive edge. Indian manufactures have also
been adopting innovative manufacturing approaches,
managerial philosophies, and information technologies to survive in the emerging competitive market.
However, Indian 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 1performance
of organizations, investigation on the important JIT
issues is essential. Research has shown that JIT philosophy has the potential for increasing organization
efficiency and effectiveness. However, JIT benefits
do not just happen1. Before an organization enjoys
with the benefits of JIT, it must accept JIT as an organizational philosophy. This may require the organization to modify its operating procedures, production
system and in most cases work culture. In this context, in many cases the plant layouts have to be
changed, relations with suppliers, and kaizen have to
be implemented2. Many researchers have reported that
JIT has potential of reducing inventory-carrying cost.
It is also instrumental in reducing lead-time, decreasing thought-put time, improving production quality,
increasing productivity, and enhancing customer re-

sponsiveness. Motivated by the potential benefits of

successful implementation of JIT to the organizations
and lack of research addressing the implementation
problems in Indian context, a survey of 34 industries
was conducted. This survey has shed some light on
the degree of difficulty in implementation of JIT
based managerial philosophy in Indian industries. The
expected JIT benefits and reasons for its slow implementation are also examined in the study. Although it
is really recognized that implementation of JIT in Indian organizations is not an easy job yet number of
attempts are being made in several Indian industries
to implement the JIT in phased manner with belief
that it would be helpful in facing the global competition.
Past Studies in Indian Context
A few papers are available on JIT practices, which
highlight the positive impact of JIT on Indian industries. Vrat et al.3 have conducted a Delphi study to
assess the applicability or difficulty of implementing
JIT elements in Indian context. The results have
shown that quality circles and good communication
are not very difficult to implement having a rating of
30 and above on a 40 point scale. Top management
attitude, multifunctional workers, long-term relationship with vendor and support from labor union have

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J SCI IND RES VOL 63 AUGUST 2004

high rating, which indicates that JIT implementation

in India is not an impossible task. The study has also
stressed on focusing more on poke-yoke, reduced set
up time, kanban system, and quality of incoming material.
Chandra and Kodali 4 have developed a multiattribute decision model using analytical hierarchy
process (AHP) for justification of JIT manufacturing
system in Indian industries. The selection of important JIT attributes and sub-attributes was determined.
All JIT attributes and sub-attributed were then used in
AHP to achieve the related benefits. The results of
study have quantified the JIT benefits in descending
order: increased profit margin, improved competitive
position, quality improvement and reduction in inventory.
Deshmukh5 has attempted review on the state of
the art of JIT and its possible ramifications in the purchasing and manufacturing system. It has been
pointed out that JIT from a systems perspective requires that suppliers and manufacturing functions
must be in concert with design, planning, and control.
JIT must be viewed as a binding force coupling all the
activities, from incoming raw material to the finished
goods.
Garg et al.6 have explored the specific cultural
changes required in JIT environment and also reported their presence in Indian industries. They have
stated that trust, locality, responsibility, development,
motivation, authority, long-term relationship, and respect for human beings mark work culture required in
JIT environment. It is critical for industries to make
conscious and deliberate efforts to change the work
culture for successful implementation of JIT. These
changes require top management commitment and
worker participation in decision making, and massive
education and training to the people concerned.
Garg et al.7 have conducted a survey of 31 Indian
industries to analyze the importance of the attributes
pertaining to JIT purchasing and supplier evaluation
criteria. The surveyed companies have given great
importance to some attributes such as, high quality,
mutual trust, cooperated relationship, on time deliveries supplier evaluation, stable production schedule,
reliable network of suppliers, reduced delivery time,
long-term contract, and continuous improvement. The
study has also indicated the scope of JIT as 70 on
scale (0-100), which is predicted better compared to
earlier studies.
Garg et al.8 have conducted a case study in JIT im-

plementation of an Indian tractor assembly industry.

Records of company have indicated that significant
benefits are achieved by improvement in quality and
productivity, and reduction in inventory, material
movement, space, manpower, work-in-process, and
lead-time. The key steps in JIT implementation were
extensive training of employees on pull concepts;
identification of key performance parameters; new
layout based on U-shaped cells; standardization of
operations; a maintenance plan for each machine,
housekeeping, visual control, and multi-skill training.
Kaujalgi and Lingara9 have provided an overview
of changes implemented in a spring manufacturing
department. These changes were made as part of a
continuing implementation of a JIT manufacturing
system. This study has shown how manufacturing
order and control systems change in order to create a
system which can react immediately according to
change in customers needs.
Mahadvan10 has conducted survey of 43 Indian industries. The findings of this study have suggested
that TQM and vendor development efforts must precede the launch of major JIT programs. It has been
found that automobile industry in India has made significant improvements in areas such as, multi-skilling
of work force, total preventive maintenance (TPM)
and JIT purchasing. These factors constitute the basic
requirements for successful JIT implementation in
any firm. Supplier development, Employee involvement, and Top management commitment are prominently listed as critical success factors. Training, task
force formation, re-layout, and pilot study are indicated as among the first five steps taken in JIT implementation.
Singhvi11 has presented the experience of implementing the JIT in an Indian automobile company.
The study has found the employee involvement as a
critical element for implementing the JIT, while large
investments are not found essential. At last, it is concluded that implementation of JIT is not so difficult in
India. Its implementation could be a great opportunity
for Indian industries due to its wide range of benefits.
Survey on JIT Practices
JIT imposes a different set of requirements on the
typical work culture. Work culture reflects the way of
life of people, their norms and values regarding work
in an organizational setting where technology and
social cultural forces jointly, determine managerial
style and practices. In other words, work culture plays

KUMAR et al.: JIT PRACTICES IN INDIAN CONTEXT

a significant role in successful implementation of JIT.

Peoples and managers of different countries think differently, according to their social and cultural principles. Therefore the implementation of Just-in-Time
(JIT) in India may be different from its implementation in western countries. Such dissimilarity causes
different types of implementation problems that
would not be found in other society. This paper, therefore, attempts to analyze some important JIT issues in
Indian context by conducting a survey of 34 industries. The main objectives of this survey were:
(i)

To identify those JIT elements, which are highly

difficult to implement in Indian industry.
(ii) To search out most accountable reasons for its
slow implementation in India.
(iii) To highlight the most expected JIT benefits.
Methodology
This study includes four phases: (a) Questionnaire
preparation, (b) Data collection; (c) Data Analysis,
and (d) Final conclusions. First phase of this study
was to review the literature related to JIT from several
books, journal articles, and relevant websites. Based
on this review, various dimensions and related elements of this concept were identified. At last, a questionnaire was prepared. The questions were on the
companys profile, JIT benefits, JIT implementation
and related problems. The questionnaire was mailed
to 115 manufacturing firms located around Delhi,
Faridabad and Gurgoan because of logistic constraints. Initially, response was poor. To get more response, reminders were sent to managers by telephonic calls while some mangers were personally interviewed. In all, 37 responses were completed. Out
of 37 responses, 3 were excluded from study due to
incomplete and unreliable responses. At last, 34 responses were found suitable for study, making response rate 29 per cent. The general profile of participated companies is given in Table 1.
Among 34 companies surveyed, eight were automobiles, six heavy machines, fivecleaners, oil filters,
steering gears, air filter housing, gear and axle assembly for cars, electric motors, refrigerators, fans, etc.
Inability to meet the daily schedule was the common
problem of participating industries. Time losses due
to machine failure and power failure, work stoppage
due to bad quality were major reasons for missing
schedule. Most of respondents were aware about JIT.

657

Table 1 General profile of companies

Type of company

Automobile: 7; Heavy machines: 9; Electronics: 6; Others: 12

Annual turnover (in crores)

Maximum (3150); Minimum

(4.5); Average (417)

Number of employees

Maximum (7100); Minimum

(30); Average (1855)

Percentage of scrap

Maximum (6.5); Minimum

(0.5); Average (2.7)

Percentage of rework

Maximum (14.0); Minimum

(1.5); Average (5.3)

Type of layout

Production: 8; Product: 07;

Mixed: 16; Cellular: 3

Ability to meet daily production schedule

Very Good :5; Good: 16, Fair:

9; Poor: 3; No response:1

Scope of JIT

Very Good: 7; Good: 13, Fair:

10; Little: 4

Awareness about JIT

Yes: 29; No: 3; No response: 2

Thirteen of the 34 respondents mentioned good scope

of JIT in India.
Analysis
The t-test is conducted at 5 per cent level of significance to analyze JIT issues such as difficulty in
implementing the JIT elements, expected benefits of
JIT implementation, and reasons for slow implementation of JIT in Indian industries. The following hypotheses were formulated for t-test.
(i)

H0: No element of JIT is difficult to implement

in Indian industry. (The null hypothesis (H0) will
be rejected if JIT element subjected under test is
not difficult to implement).
(ii) H0: All JIT benefits listed in Table 2 could not
be achieved through JIT implementation. (The
null hypothesis (H0) will be rejected if surveyed
companies have achieved any expected JIT
benefits listed in Table2).
(iii) H0: All causes listed in Table 3, are not responsible for slow implementation of JIT in Indian
industries. (The null hypothesis (H0) will be rejected if surveyed companies face the similar
problem as listed in Table 3).
The results of t-test are given in Tables 2 - 4. The
study indicates the JIT index as 3.18 on scale 0-5, implying that perfect implementation of JIT is slightly
difficult in Indian industries. It has been found that
JIT elements such as, Buffer stock removal, Error pre-

J SCI IND RES VOL 63 AUGUST 2004

658

Table 2 Degree of difficulty in implementing JIT attributes by the respondents

High
Sl No. JIT elements
1
Buffer stock removal
2
Continual quality improvement
3
Effective communication
4
Employee empowerment
5
Error prevention (poke-yoke)
6
Frequent and reliable delivery
7
Group incentive scheme
8
High QC visibility
9
Job enlargement
10
Kanban system
11
Line stop strategy
12
Long-term employment
13
Long-term QC commitment
14
Multifunctional worker
15
Total preventive maintenance
16
QC authority to worker
17
QC training to supplier
18
Quality certification of supplier
19
Quality circles
20
Regular quality auditing
21
Self correction of defects
22
Set up time reduction
23
Short lead time
24
Small lot size
25
Standard containers
26
Standardization
27
Process control
28
Statistical quality control
29
Strong buyer-supplier relationship
30
Team work
31
Total quality control
32
U-cells/Layout improvement
33
Vendor rating
34
Scheduling flexibility
35
Zero defect
36
Zero deviation schedule
37
100 per cent quality inspection

5
9
7
0
2
9
7
0
3
5
16
7
7
2
4
10
4
3
3
7
2
6
10
9
12
0
4
8
6
5
1
9
11
1
5
16
17
6

Degree of difficulty
4
13
6
2
1
11
12
6
9
7
11
8
5
6
9
11
8
9
1
10
8
7
13
8
7
5
9
7
7
8
3
8
14
3
9
7
12
9

3
10
11
15
13
8
11
8
12
11
3
10
10
17
16
7
14
7
11
9
13
7
6
11
5
9
11
13
9
6
9
8
5
8
13
3
3
8

2
1
8
12
17
3
2
15
5
3
1
3
6
7
4
3
6
7
8
3
7
8
3
3
4
12
7
1
6
7
12
4
1
15
5
3
1
4

Low
1
0
1
4
0
1
1
2
2
3
2
4
3
2
0
1
1
5
6
3
1
3
0
2
4
6
1
2
3
3
3
2
0
3
0
0
0
5

No res- Mean
ponse score
1 3.794
1 3.206
1 2.382
1 2.559
2 3.529
1 3.559
3 2.353
3 2.912
5 2.794
1 4.029
2 3.147
3 2.941
0 2.971
1 3.294
2 3.588
1 3.147
3 2.676
5 2.176
2 3.265
3 2.824
3 2.882
2 3.706
1 3.471
2 3.382
2 2.265
2 3.059
3 3.265
3 2.941
5 2.706
6 2.088
3 3.265
3 3.765
4 2.176
2 3.235
5 3.618
1 4.235
2 3.029

Results
Let H0 =3.00
tcalculated
1.887
1.524
-4.934
-3.530
0.202
0.400
-5.162
-0.687
-1.625
0.175
1.101
-0.456
-0.227
-1.495
0.596
1.101
-2.577
-6.479
1.934
-1.388
-0.919
1.347
-0.205
-0.837
-5.833
0.448
1.934
-0.456
-2.338
-7.097
1.934
1.703
-6.479
1.730
0.788
1.322
0.225

H0 rejected, Ha =3.50 accepted

H0 accepted
H0 accepted
H0 accepted
H0 rejected, Ha =3.50 accepted
H0 rejected, Ha =3.50 accepted
H0 accepted
H0 accepted
H0 accepted
H0 rejected, Ha =4.00 accepted
H0 accepted
H0 accepted
H0 accepted
H0 rejected, Ha =3.50 accepted
H0 rejected, Ha =3.50 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 rejected, Ha =3.50 accepted
H0 rejected, Ha =3.50 accepted
H0 rejected, Ha =3.50 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 accepted
H0 rejected, Ha =3.50 accepted
H0 accepted
H0 accepted
H0 rejected, Ha =3.50 accepted
H0 rejected, Ha =4.00 accepted
H0 accepted
Grand Mean score: 3.18

vention (poke-yoke), Frequent and reliable delivery,

Kanban system, Multifunctional worker, Total preventive maintenance, Set up time reduction, Short
Lead time, Small lot size, U-cells/layout improvement, Zero defect, and Zero deviation schedule are
difficult to implement while other elements such as,
Continual quality improvement, Effective communi-

cation, Employee empowerment, Group incentive

scheme, High QC visibility, Job enlargement, Line
stop strategy, Long-term contracts/employment, Longterm QC commitment, QC authority to worker,QC
training to workers supplier, Quality certification of
supplier, Quality circles, Regular quality auditing,
Selfcorrection of defects, Standard containers,

KUMAR et al.: JIT PRACTICES IN INDIAN CONTEXT

659

Table 3 Expected benefits of JIT implementation as perceived by respondents

Degree of expected benefits
High
Sl No. Expected JIT benefits

No
Low Res- Mean
1 ponse Score t calculated

Results
Let H0=3.00

Improved competitive position

14

3.500 0.000

H0 rejected, Ha =3.50 accepted

Improved equipment utilization

3.412 -0.623 H0 rejected, Ha =3.50 accepted

Improved quality control

16

3.912 -0.545 H0 rejected, Ha =4.00 accepted

Improved worker efficiency

12

3.324 -1.273 H0 rejected, Ha =3.50 accepted

Improved worker motivation

11

2.676 -2.577 H0 accepted

Increased inventory turn

14

10

3.941 -0.360 H0 rejected, Ha =4.00 accepted

Increased administrative efficiency

12

2.882 -0.919 H0 accepted

Increased flexibility

13

10

3.853 -0.923 H0 rejected, Ha =4.00 accepted

Increased productivity

17

11

4.206 1.166

10

Increased profit margin

10

3.471 -0.205 H0 rejected, Ha =3.50 accepted

11

Increased product reliability

2.882 -0.919 H0 accepted

12

Increased team work

14

11

4.029 0.175

H0 rejected, Ha=4.00 accepted

13

Low scrap rate

10

12

3.559 0.400

H0 rejected, Ha =3.50 accepted

14

Lower over heads

3.088 0.668

H0 accepted

15

Reduced inventories

17

4.000 0.000

H0 rejected, Ha =4.00 accepted

16

Reduced labor requirement

2.471 -4.238 H0 accepted

17

Reduced paper work

12

2.382 -4.934 H0 accepted

18

Reduced product cost

3.324 -1.273 H0 rejected, Ha =3.50 accepted

19

Reduced production lead time

13

3.382 -0.837 H0 rejected, Ha =3.50 accepted

20

Reduced purchase lot size

12

3.647 0.978

H0 rejected, Ha =3.50 accepted

21

Reduced raw material/parts

3.029 0.225

H0 accepted

22

Reduced space requirement

12 10

2.824 -1.388 H0 accepted

23

Reduced supervision

10

2.941 -0.456 H0 accepted

24

Reduced the frequency of stoppage

12

3.647 0.978

25

Reduced work in process

14

10

3.882 -0.732 H0 rejected, Ha =4.00 accepted

H0 rejected, Ha =4.00 accepted

H0 rejected, Ha =3.50 accepted

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660

Table 4 Reasons for slow implementation of JIT methods in Indian industries

Sl No. Reasons for slow implementation of
JIT in Indian industry

High

Low

No Mean
Res- score
ponse
0

tcalculated

Results
Let H0 =3.00

High cost of implementation

14

3.529

0.202 H0 rejected, Ha =3.50 accepted

Informal and casual quality auditing

16

3.353

-1.053 H0 rejected, Ha =3.50 accepted

Lack of communication on QC with in

company

11

3.059

0.448 H0 accepted

Lack of customer awareness about product quality

2.971

-0.227 H0 accepted

Lack of employee mathematical skill

13

12

2.853

-1.153 H0 accepted

Lack of production technology and

managerial skill

11

2.676

-2.577 H0 accepted

Lack of support from workers

3.176

1.314 H0 accepted

Lack of support from supervisors

3.147

1.101 H0 accepted

Lack of support from suppliers

16

3.735

1.527 H0 rejected, Ha =3.50 accepted

10

Lack of support from design engineering

11

13

2.176

-6.479 H0 accepted

11

Lack of support from HRD department

10

3.029

0.225 H0 accepted

12

Lack of support from R & D department

14

4.000

0.00

13

Lack of team work

2.912

-0.687 H0 accepted

14

Lack of top management participation in 10

QC programs

3.206

1.524 H0 accepted

15

Lack of training

13

10

3.353

-1.053 H0 rejected, Ha =3.50 accepted

16

Lack of understanding about JIT techniques

15

3.765

1.703 H0 rejected, Ha =3.50 accepted

17

Negative attitude, traits & beliefs of

Indian work force

10

2.382

-4.934 H0 accepted

18

Poor and inadequate maintenance

17

4.029

0.175 H0 rejected, Ha =4.00 accepted

19

Shortage of multifunctional workers

12

3.588

0.596 H0 rejected, Ha =3.50 accepted

20

Traditional methods of quality control

11

3.529

0.202 H0 rejected, Ha =3.50 accepted

H0 rejected, Ha =4.00 accepted

KUMAR et al.: JIT PRACTICES IN INDIAN CONTEXT

Standardization, Process control, Statistical quality

control, Strong buyer-supplier relationship, Team
work, Total quality control, Vendor rating, Scheduling flexibility, and 100 per cent quality inspection are
easy to implement in Indian industries. Similarly, JIT
benefits such as Improved equipment utilization, Improved quality control, Improved worker efficiency,
Increased inventory turn, Increased flexibility, Increased productivity, Increased profit margin, Increased team work, Low scrap rate, Reduced inventories, Reduced product cost, Reduced production lead
time, Reduced purchase lot size, Reduced the frequency of stoppage and Reduced work in process are
expected benefits. The results of survey indicate that
High cost of implementation, Informal and casual
quality auditing, Lack of support from suppliers, Lack
of training, Lack of understanding about JIT techniques, Poor and inadequate maintenance, Shortage of
multifunctional workers, Traditional methods of quality control are major reasons for slow implementation
of JIT in Indian industries. In addition, participated
industries have also indicated that they do not have
full support from top management and R&D department. Even with these problems, Indian industries are
expecting significant benefits from JIT implementation. Statistical tests confirm that scope of JIT in India
is good. Therefore, attention must be focused on critical elements of JIT to reap maximum benefits.
Disadvantages of JIT Implementation
For more than a decade, JIT has been touted as
prime way to keep costs down and assembly lines
running smoothly. However, some researchers criticized that JIT methods have some considerable negative implications at various levels. Indian industries
should be examined these issues prior to the implementation of JIT These are:
(i)

Implementation of JIT does not automatically

increase profit because benefits derived from JIT
adoption may be offset by its many direct and
indirect costs. In addition the industries cannot
expect favorable results just by implementing
the JIT because it demands appropriate fit between new manufacturing practices and organizational design, structure, and processes. Its
success also depends critically on executive
(management) commitment, employee empowerment, and an open organizational culture12.
(ii) JIT demands the delivery of high quality
parts/raw material in small lots. The small lot

661

size production requires increase in efficiency

and reliability of production system to unrealistic level because multiple sourcing becomes difficult under JIT13.
(iii) JIT programs are not one-time efforts that can be
quickly implemented. Such programs need continuous assessment to achieve a sustained improvement in quality. They also require continuous close cooperation and communication at all
levels of industries14.
(iv) The stringent demands of the JIT production
system require maintaining communication between the supplier and industry at the highest
levels because buffer stocks have been eliminated or reduced dramatically. The timing is just
as important as quality and quantity. There is little or no margin or error15.
(v) Extending managerial power is a salient feature
of JIT But, it has negative implication for workers. Workers are in fact subject to highly visible
forms of managerial power, control, and processes of constant surveillance and monitoring of
output and performance. In addition, JIT entails
excessive re-training costs and demand unrealistic employee commitment levels16.
(vi) The JIT information system, kanban requires
longer time to transmit any new information
through the system as compared to centralized
information processing system17.
Conclusions and Recommendations
The results of this survey support the notion that
JIT has the potential to increase the operational efficiency, quality and organizational effectiveness of
Indian industries while its some basic elements are
slightly difficult to implement in existing production
system of industries. To gain the benefits of JIT, Indian industries must be willing to modify their procedures and operations. The training of employees in
order to create an organizational culture, establishment of new procedures for dealing with suppliers,
analysis of operations to identify the areas of standardization, simplification and automation and reengineering of operational processes and procedures
are some important issues, which should be examined
prior to the implementation of JIT. If these issues are
not adequately addressed the JIT effort is bound to
encounter humans and suppliers related problems.
The potential benefits of JIT to Indian organizations
are not in doubt. However the art of designing the
3right strategy for implementing the JIT in Indian in-

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J SCI IND RES VOL 63 AUGUST 2004

dustries is debatable. Therefore, issues related to these

concerns are worthy of future research.
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e-mail: [email protected]

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