The impact of critical success factors of JIT implementation on organizational performance

Abstract

Much has been written and publicized about the virtues of JIT philosophies during the past decade. However, relatively limited empirical research has been reported con-cerningJIT implementation on organizational performance. This study presents the results of an empirical study which utilized both concrete financial accounting data and a broad cross-sectional survey as measures of organizational performance to determine the impact of each JIT implementation requirement factor to organizational performance. Communication between production and marketing departments was identified as a critical factor for increased inventory turnover and work-in-process inventory turnover, while employees' participation and the bottom-up management approach were determined as significant factors for improving quality and flexibility. The results of this study imply that in JTT environment personnel management practices, such as bottom-up management encouraging employees participation, and organization management such as a communications linking the production and marketing departments, are more important than JIT practices themselves.

Keywords:

• just-in-time
• quality and flexibility
• JIT
• organizational performance