Measuring JIT Performance in Auto-suppliers industry in The United States Dissertation


Measuring JIT Performance in Auto-suppliers sector in The

United States

Hsien-Ho Liao

International College Program of Agribusiness Nationwide Chung Hsing University, Taichung City, Taiwan


The just-in-time (JIT) production program has been utilized in the United States for many years, often to never its complete extent. Japan has also applied JIT in lots of of their businesses both in the home and in their very own manufacturing sites abroad. Many American firms that have followed the JIT system both internally and externally did not receive spectacular results also after a large number of attempts. A large number of experts point out that JIT has to be customized in order to fit into the American culture. JIT is not just a philosophy but an actual method.

The primary JIT viewpoint is to attain the functionality of actions based on quick need or perhaps demand. JIT can be used not just inside the manufacturing location, but it also may be broadly employed as a process that is designed to help companies in operating price, reduce their particular energy usage, processing times and materials. In fact , JIT has now recognition in many industries such as hospitals, education, banking companies, trade, information technology and many others. This paper will certainly focus on the JIT efficiency in vehicle supplier sector. In phase one, the brief history and current condition of automotive aftermarket will be tackled, in chapter two, the previous research and observations will probably be covered as well as advantages and disadvantages of JIT. The qualitative study results and survey info were accumulated via telephone in order to taken away survey errors (participants can ask problem if they just do not understand the question). The data was analyzed by SPSS software program; the investigator used the following models: Cronbath's Alpha, Component analysis, Pearson Correlation, Suggest, and Crosstab.

Keyword: JIT, Just-in-time, automobile supplier, and JIT overall performance.



Automobile development involves two styles of companies: parts developing (suppliers) and vehicles putting together (automakers). The majority of consumers understand the automakers, but handful of will pay focus on the suppliers. This is because many people believe that auto manufacturers produce everything for their goods. This may have already been true back in the nineteenth hundred years or early on twentieth 100 years. However , auto manufacturers had to let parts creators handle more and more components in order to concentrate on marketing and selling their particular vehicles. Unsurprisingly, suppliers have more than three and a half occasions more personnel and bring about 60% with the value of the finished vehicle. In fact , parts suppliers took on this important role the major component influencing the competitiveness of carmakers is definitely the strength and constructiveness with their relationships using their suppliers (Klier & Rubinstein, 2006). Each vehicle includes approximately 12-15, 000 parts. Because automakers decide to possess suppliers manage producing parts, managers of purchasing department need to figure out how to enhance long-term interactions and mutual cooperation with suppliers. All their interactions lengthen from application to production or the different option is usually to rely on shorter-term contracts and competitive bidding process, as well as more in-house advancement and developing, in an attempt to reduced final costs (Abernathy 1979; Monteverde and Teece 1982). Many researchers have found interesting situations on how Japan automakers have already been relying on their suppliers to increase up overall performance. According to Cusumano, in the late 80's vehicle suppliers (including nonconsolidated subsidiaries) accounted for regarding 70% of producing costs (Cusumano, 1988) and over half of the engineering several hours required- for new product development (Clark 1989; Fujimoto 1989). In addition , effective distributor management and supplier efforts also have been frequently offered as important factors in Japanese price and quality advantages in the United States alternatives, not just in...

References: Abernathy, W. L. (1979). The Productivity Situation: Roadblock to Innovation in the

Automobile Sector

Aghazadeh, S i9000. (2003). JIT inventory and competition inside the global environment: A comparison

study of American and Japanese people values in auto market

Ahmad S i9000., Schroeder 3rd there’s r., & Sinha K. (2003). The function of facilities practices in the

effectiveness of JIT procedures: implications to get plant competitiveness

Anderson, M. & Gerbing, D. (1988), Structural formula modeling used: A review and

recommended two-step approach

Ansari, A., & Modarress, M. (1986). Just-in-time purchasing: Challenges and solutions. Journal of

Purchasing and Materials Supervision, 22(2): 11-15.

Asanuma, M. (1988). Manufacturer-Supplier Relationships in Japan and the Concept of Relationship

Specific Skill

Balakrishnan, Ur., Linsmeier, T. J. & Venkatachalam, M. (1996). Monetary benefits from JIT

adoption: Associated with customer concentration and expense structure

Bank, R. G., Potter, G., & Schroeder, R. G. (1993). Credit reporting manufacturing overall performance

measures to workers: An empirical study

Baily, Meters. N., Farrell, D., Greenberg, E., Henrich, J. G. Jinjo, And., & Jolles, M. (2005). Increasing

global competition and labor production: lessons in the U. T

Bates, T., Amundson H., Schroeder 3rd there’s r., & Morris W. (1995). The crucial interrelationship between

Production Strategy and Organizational Traditions

Bensaou, Meters., & Venkatraman, N. (1995). Configurations of interorganizational relationships: a

comparison between US and Western automakers

Blackburn, J. Deb. (1992). Time-based Competition: White-collar activities. Business Horizons,

thirty five, pp. 96-101.

Brown, K. and Mitchell, R. (1991). A comparison of Just-in-Time and Batch making: The

Role of Overall performance Obstacles

Calvasina, R. Versus., Calvasina, E. J., & Calvasina, G. E. (1989). Beware the newest accounting misguided beliefs.

Charles, Farrenheit., & Serta, S. (1978). Strategy Formulation-Analytical Concepts. Western, St . Paul.

Cheng, Capital t. C. Elizabeth. (1996). Just-In-Time Manufacturing: An Introduction. Chapman and Hall.

Chenhall, R. They would., & Langfield-Smith, K. (2003). Performance dimension and prize systems,

trust, and strategic change

Cusumano, M. (1985). The Japanese Automobile Industry. Cambridge, Mass., Council on East

Asian Studies/Harvard University Press.

Cusumano, Meters. (1988). " Manufacturing Advancement: Lessons in the Japanese Car Industry.

Cusumano, Michael A. and Akira Takeishi (1991). Supplier Relations and Managing: A Review

of Western, Japanese-Transplant, and U. T

Davis, L. & Crombie, Lain. (2009). What are confidence intervals and p-values? Hayward

Medical Marketing and sales communications, a label of Hayward Group Ltd

de Boer, L., Labro, Electronic. and Morlacchi, P. (2001) A review of strategies supporting dealer selection,

European Journal of Purchasing and Supply Management, Vol

Dillman, D. A. (2002). OEI Surveys inside the New 100 years: Some Humble Suggestions.

Dong, Y. (1998). Just-in-time Purchasing and Supply: A Supply Cycle Analysis. Important

Dissertation, School of Baltimore, Park, MARYLAND.

Drury, C. (1990). Checking the Cost of LEN Investment. Diary of Accountancy, pp. 134-138.

Dyer, M. H. (1996). Does governance matter? Keiretsu alliances and asset specificity as options for

Japanese competitive advantage

Dyer, J. L. (1997). Successful inter-firm effort: how firms minimize deal costs and

maximize purchase value

Ebrahimpour, M., & Lee, T. M. (1988). Quality administration practices of American and Western

electronic organizations in the United States

Fandel, G., & Reese, M. (1991). Merely in time logistics of a distributor in the car manufacturing industry.

Flynn, B., Sakakibara, S., & Schroeder, 3rd there’s r. (1995). Romance between JIT and TQM: Practices

and gratification

Ford, H. & Crowther, S. (1922). My Life and Work: An Autobiography of Henry Kia.

Fornell, C. and Larcker, D. (1981), Evaluating strength equation models with unobservable

variables and measurement problem

Fujiki, T. (2001). Kawaru Jidosha buhin torihiki: Keiretsu kaitai. Economist Sya, Tokyo.

Fujimoto, Capital t. (2001). The Japanese automobile parts supplier system: The triplet of effective

inter-firm sessions

Garvin, D. A. (1983). Quality at risk. Harvard Business Review, 61(5): 64-75.

Gleckman, H., Schiller, Z., & Treece, J. (1994). A tonic intended for the business cycle. Business Week

3365, l. 57.

Gonzalez-Benito, J., & Spring, M. (2000). JIT purchasing inside the Spanish car components

industry: implementation patterns and perceived benefits

Gonzalez-Benito, J., Gonzalez-Suarez, I., & Spring, M. (2000). Complementarities between JIT

purchasing methods: an economic research based on deal costs

Gunasekaran, A. (1999). Just-in-time purchasing: An investigation for research and applications.

Area, R. T. (1987). Attaining manufacturing excellence. Homewood, IL: Business One Irwin.

Hay, Electronic. (1988). The just-in-time breakthrough: implementing the modern manufacturing basics.

Hair, T. F, Anderson, R. At the, Tatham, R. L, & Black, T. C. (1992). Multivariate info analysis with


Heide, J. B., (1995). Overall performance implications of buyer–supplier interactions in commercial

markets: a transaction price explanation

Hillside, C. (1995). National institutional structures, transaction cost economizing and competitive

advantage: the case of The japanese

Hitt, Meters. A., Hoskisson, R. Elizabeth., & Harrison, J. S i9000. (1991) Ideal competitiveness in the 1990s:

Written Research 2: as to what Extent Do the Early New England Puritans Live Up to Their very own Idealized Perspective of Community? Explain. Article