Achieving competitive advantage through the implementation of a just-in-time system : an evaluation based on the experiences of selected local manufacturing firms

Abstract

In today's highly competitive markets, high quality, manufacturing flexibility, responsiveness to customers and effective cost reduction are the main elements to a firm's survival and its ability to compete with its rivals. Continuous improvement, elimination of non-value added activities, emphasis on perfect quality, zero inventory, demand-pull manufacturing and employee involvement are the dominant features of a JIT system which have enabled firms to retain a competitive edge in worldwide markets. The objective of this study is to evaluate the experiences encountered by a selection of local manufacturing firms as a result of the implementation of the JIT system and the extent to which this system contributed towards the achievement of a competitive advantage. In order to reach these objectives, semi-structured interviews were held with a selection of local manufacturing firms, which have implemented the JIT system within their production process. This study shows that the implementation of the JIT system was not an easy task since several major changes had to be made and costs were incurred in order to incorporate the essential elements of this system. In addition several characteristics within the local business environment have limited the potential of the JIT system from being realised to the full. However, results emerging from the study conclude that the implementation of the JIT system has been a huge success to all the selected local manufacturing firms. In fact, a large number of benefits have been achieved and which have contributed towards the achievement of a competitive advantage.