JIT implementation in Egyptian

manufacturing rms: some

empirical evidence
Salaheldin Ismail Salaheldin
Department of Business Administration, College of Business and Economics,
Qatar University, Doha, Qatar
Abstract
Purpose This study aims to delineate the major human modications to be undertaken prior to
just-in-time (JIT) implementation in Egyptian manufacturing rms; to discern the benets obtained
from JIT implementation; to identify the problems that Egyptian manufacturing companies typically
encounter in implementing JIT philosophy; and to explore the relationship between human
modication efforts to be undertaken prior to JIT implementation and JIT success.
Design/methodology/approach The data analyzed in this article was collected from a mail
questionnaire sent to 200 manufacturing rms in Egypt. The ndings of this study indicate that JIT
success is signicantly associated with human resources modication efforts undertaken in
preparation for JIT implementation.
Findings JIT philosophy can be successfully implemented in Egyptian manufacturing companies;
just like their peers in developed countries including Japan, USA and the Far East; with thoughtful
attention applied to each individual company. Implementation of JIT can greatly improve the
operations performance of Egyptian manufacturing rms.
Practical implications A very signicant managerial implication of the current study is that the
Egyptian manufacturing companies can use JIT as a strategic philosophy, rather than as a temporary
solution for operations obstacles. Another managerial implication of this study is that manufacturing
rms are advised to be aware of the meticulous relationship between human modication efforts and
the successful implementation of JIT philosophy.
Originality/value This study contributes to what is a very limited amount of empirical studies of
JIT implementation in LDCs in general and in Egypt in particular.
Keywords Just in time, Manufacturing systems, Egypt
Paper type Research paper
Introduction
Egypt, like most less developed countries (LDCs), strives to diagnose and nd solutions
for the severe problems that are obstructing the growth and development of its
industrial sectors. Problems like high scrap, losing market shares, high levels of
inventory, poor quality in products and labor, long lead times and the existence of
many sources of waste in production processes (Salaheldin and Francis, 1998).
Studies have shown that the successful implementation of just-in-time (JIT) can help
to alleviate many of the obstacles mentioned above (Draper, 1995; Vuppalapati et al.,
1995; Walley, 2000; Cua et al., 2001). However, review of relevant literature reveals that
the successful implementation of JIT philosophy hinges on several modication efforts
to be undertaken prior to the implementation process.
One major modication that should be undertaken prior to JIT implementation is
that it demands a major change in peoples attitudes and work habits (Gupta, 1990;
Norris and Swanson, 1994; Yasin et al., 2001).
The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at
www.emeraldinsight.com/researchregister www.emeraldinsight.com/0144-3577.htm
IJOPM
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International Journal of Operations &
Production Management
Vol. 25 No. 4, 2005
pp. 354-370
qEmerald Group Publishing Limited
0144-3577
DOI 10.1108/01443570510585543
Furthermore, it was discovered that only a few studies on JIT implementation in
developing countries have appeared recently (Lawrence and Lewis, 1996; Gyampah
and Gargeya, 2001). In view of that, the main task of the current empirical study is to
investigate the critical human variables that are affecting the implementation of JIT
philosophy in Egyptian manufacturing rms.
Moreover, this investigation is seen as a principal step towards formulating strategies
and tactics that remove and avoid many of the severe obstacles that impede the successful
implementation of JIT philosophy on the road to achieving its potential benets.
Review of relevant literature
Nowadays, manufacturing rms are forced to implement a wide variety of innovative
managerial tools and philosophies, in an effort to improve their performance while
reacting to external and internal pressures. One of the most popular business
revitalization or renewal programs over the past two decades has been just-in-time
(JIT) (Aladwani, 1999).
JIT benets and pitfalls
Research has shown that the successful implementation of JIT philosophy can produce
signicant benets for manufacturing rms; such as, improving quality that
consistently and continually meets customers requirements; minimizing levels of
inventory and improving relationship with suppliers (Aghazadeh, 2003); reducing the
labor turn over rate; reducing manufacturing lead times; reducing set-up time (Wafa
and Yasin, 1998); reducing operations and materials handling costs; and maximizing
the use of space (Petersen, 2002).
JIT can also improve the on-time receipt of material from suppliers (Yasin et al.,
2001); improving purchasing function; improving preventive maintenance; increasing
worker participation; improving the quality and timing of received material; full
utilization of people, equipment, materials and parts; and improving competition while
reducing paper work (Arnold and Bernard, 1989; Crawford and Cox, 1991; Markham
and McCart, 1995; Vuppalapati et al., 1995; Alternburg et al., 1999).
Contrasted with this is the fact that caution is needed because the arrival of
materials must be accurate and continuous; plus the use of backup inventories is
necessary (Petersen, 2002).
Moreover, Schermerhorn (1996) suggests that the effectiveness of JIT
implementation hinges on a wide range of special support that includes: high
quality supplies; strong management commitment; a manageable supplier network;
geographic concentration; plus efcient transportation; and materials handling.
JIT implementation in developing nations
Lawrence and Lewis (1996) concluded in their study of the use of JIT practices in
Mexico that JIT can be used successfully in some Mexican manufacturing rms.
Furthermore, they found that there are three groups of obstacles that hinder the
implementation of JIT in Mexican operations:
(1) Employee participation obstacles.
(2) Supplier participation obstacles.
(3) Obstacles to the managerial integration of the JIT companies.
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Gyampah and Gargeya (2001) conducted a study on the implementation of just-in-time
in manufacturing rms in Ghana. They found that JIT rms differ from non-JIT rms
in terms of their efforts with set-up time reduction, continuous quality improvements,
suppliers partnership and employees training. However, there is no signicant
difference with regard to the use of measurement systems.
JIT modications
Researchers and practitioners indicated that several modications to existing systems
should be undertaken prior to JIT implementation.
First, JIT requires a modied approach by top management which may include
signicant modications; such as, designing an organization that integrates strategy
with people to achieve the basic premise of JIT, elimination of all types of waste; reducing
specialization and organization functions; creating project teams; making everyone
responsible for production of quality products and services; developing management and
employees commitment to continuous improvement (Theng, 1993; and Chong et al.,
2001); plus integrating people and organizational systems with hardware (Sim, 2001).
Second, the engineering modications of JIT include: changing work center layout;
combining several operations to minimize the distance traveled; grouping machines in
cells; purchasing equipment with short setup (Wafa and Yasin, 1998); responsibility for
product design; quality and reliability; using design of experiments to improve quality
while reducing costs; seeking product standardization wherever feasible; concentrating
on continuous improvement in product design (Theng, 1993); using total productive
maintenance (TPM) as an integral part of a JIT system (Bamber et al., 2000); plus
analyzing the operations in order to identify where standardization, simplications
and automation are needed (Yasin et al., 2001).
Third, JIT requires modifying the material ow through changing inventory and
order policies, as well as production runs policies; reducing the number of vendors
(Wafa and Yasin, 1998); stabilizing production schedules on a daily or weekly basis;
planning production from nal assembly; developing methods for estimating
work-in-process and identifying why the company needs it; then trying to reduce it
regularly (Theng, 1993); and establishing newprocedures for dealing with suppliers like
dening the criteria for suppliers based on quality, cost and timing (Yasin et al., 2001).
Finally, the implementation of JIT requires some human resources modication
efforts including training employees to improve their job skills in technical matters and
problems solving (Wafa and Yasin, 1998); changing from individual to group
incentives that are related to JIT accomplishment; reducing job classications;
substituting multi-skilled jobs; increasing exibility of work reassignment; plus
ensuring the ability to work overtime to complete daily schedules (Theng, 1993);
participation of employees in decision making (Ramarapu et al., 1995); training of
management and employees to create an organizational culture consistent with the JIT
philosophy (Jin et al., 1994); and building good relations with suppliers and improving
communications between management and employees (Ramarapu et al., 1995; Yasin
et al., 2001).
Key human resources problem areas
Works cited earlier by Celley et al. (1986); Klein (1988); Billesbach (1991); Jin et al.
(1994); Mazany (1995); Wafa and Yasin (1998); and Yasin et al. (2001) have identied
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several human resources barriers that may hinder manufacturing companies
implementing JIT philosophy successfully; such as, lack of formal training/education
for management and workers; lack of communications between workers and
management; management and employees resistance; a lack of support from top
management; lack of company JIT expertise; lack of cooperation by suppliers to
correctly supply materials on schedule; lack of support from production and material
management; plus a lack of support from supervisors/foremen.
As a consequence the following were observed:
.
the lack of empirical attempts to study the obstacles that impede the
implementation of JIT in less developed countries such as Egypt; and
.
the scarcity of detailed research that provide JIT users with guidance in
identifying the critical human variables affecting the JIT philosophy
implementation within manufacturing companies in less developed countries.
Research questions and objectives
To analyze the implementation of JIT philosophy by Egyptian manufacturing rms,
the researcher developed two major questions:
(1) Does JIT philosophy work equally well in Egyptian manufacturing rms as in
their peers in developed countries like Japan, USA and the Far East?
(2) If so, how can JIT philosophy be implemented successfully in Egyptian
manufacturing companies?
These were the overall questions to be answered by the current study; dened by the
following four objectives:
(1) To delineate a set of human resources modication efforts to be undertaken in
preparation for the JIT implementation process in Egyptian manufacturing
rms.
(2) To discern the benets obtained from JIT implementation, based on the
viewpoint of Egyptian manufacturing rms.
(3) To identify the problems that Egyptian manufacturing companies typically
encounter in implementing JIT philosophy.
(4) To explore the relationship between human modication efforts that should be
undertaken prior to JIT implementation and JIT success.
Contribution to current knowledge
The current study contributes to what is a very limited amount of empirical studies of
JIT implementation in LDCs in general and in Egypt in particular. In addition, this
study contributes to what is currently a limited amount of empirical evidence to
explore and examine the relationship between human modication efforts that should
be undertaken prior to JIT implementation and JIT success.
This may provide the opportunity for other researchers to execute more research
in this eld and to merge with other modication efforts that should be undertaken
prior to JIT implementation; such as, management, engineering and logistics
modications.
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Furthermore, the current study is the third in a series planned to investigate the
implementation of innovative manufacturing tools and philosophies in the Egyptian
industrial sector (Salaheldin and Francis, 1998, Salaheldin, 2003).
Hypotheses
Thus, in order to shed light on the actual existence of JIT implementation patterns,
while describing more precisely what the Egyptian manufacturing rms have
implemented or are considering to implement with the JIT philosophy; it is important
to consider the following hypotheses:
H1. Manufacturing rms which are more willing to undertake human resources
modication efforts prior to JIT implementation attain a higher level of JIT
benets.
H2. There is no difference between the non-JIT companies concerning the
obstacles that impede the implementation of JIT philosophy in the Egyptian
industrial sector.
Study methodology
The sample
The mail survey questionnaire that was sent to approximately 200 manufacturing
rms in Egypt, focused on company characteristics, human modication efforts to be
undertaken prior to JIT implementation, JIT benets, and JIT implementation
problems.
The survey population of this study is dened as all Egyptian manufacturing
companies (200 companies) in the Egyptian ex-public industrial sector[1]. The target
respondent in each company was the production manager or materials manager. Care
was taken to include all JIT and non-JIT rms in the sample.
Usable responses of 94 were obtained resulting in a response rate of 47 percent (see
Table I). This rate was found to be better than similar studies reported in the literature
(Mehra and Inman, 1992; Wafa and Yasin, 1998; Yasin et al., 2001). The nal usable
sample was broken into manufacturing rms that have implemented JIT philosophy
(56) and manufacturing rms that are considering JIT implementation (38).
The construction of the questionnaire
The mail survey questionnaire was constructed based on two successful studies
previously conducted in related elds of study, i.e. the Lawrence and Lewis (1996)
study and the Wafa and Yasin (1998) study. The modications made to these studies
were determined by the researchers own knowledge of conditions of the Egyptian
industrial sector and the theoretical issues discussed previously.
Mailing list 200
Total responses 97
Unusable responses 3
a
Final usable responses 94
Useable response rate (%) 47
Note:
a
Three questionnaires are unusable because they are with a high proportion of missing values
Table I.
Survey responses rate
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Validity of the questionnaire
Having established an approximate schedule of questions relevant to the issues under
investigation in the current study, i.e. the signicant human modication efforts
affecting the successful implementation of JIT in Egyptian manufacturing companies;
it was decided to conduct a pilot study to conrm that the theoretical and practical
issues identied by the author were appropriate to the manufacturing environment in
Egyptian manufacturing rms.
Questionnaires were provided in Arabic language where appropriate. The Arabic
version was translated from English and then back-translated to ensure equivalency.
The questionnaire was validated (face validity) by 20 operations and materials
managers in Egyptian manufacturing rms.
Measurements
Procedures for testing H1. Respondents were asked to determine the importance of
undertaking human resources modication efforts prior to JIT implementation.
Accordingly, JIT companies were reclassied into JIT rms that were more willing and
rms that were less willing to undertake human modication efforts prior to JIT
implementation.
The cut-off point on the importance scale is 3. Those rms with the degree of
importance less than 3 are classied as companies which were less willing to undertake
human resources modication efforts prior to JIT implementation (11 companies).
Those rms with the degree of importance greater than 3 are classied as
companies that were more willing to undertake human resources modication efforts
prior to JIT implementation (45 companies).
Due to the survey containing a large number of variables, most were correlated.
Factor analysis is used to examine the relationships among the interrelated variables to
determine the factors needed to represent them as in Lawrence and Lewis (1996), and
Yasin et al. (2001).
By computing the Bartletts test sphericity and Kaiser-Meyer-Olkin (KMO) measure
separately for the human modication efforts and JIT benets variables, the results
indicated that all the values of Bartletts statistic are signicant.
Also, all the KMOs are $0.70 for each data set and are $0.60 for each variable,
which means that all variables are likely to be worthwhile for running factor analysis.
As a result, Bartletts test and KMO values were considered meritorious.
By implementing human resources modication efforts prior to JIT implementation,
a principal component factor analysis indicated that the ten variables (i.e. human
resources modication efforts) are reduced to only three factors with an eigenvalue
greater than one.
The three factors explained 72 percent of the total variance. The extracted factors
and their factor loadings are illustrated in Table II. Factor 1 is labeled as informative
modication efforts. Factor 2 is labeled as skill modication efforts. Factor 3 is labeled
as educational modication efforts.
A principal component factor analysis indicated that the 16 variables (i.e. JIT
benets) are reduced to only four factors with an eigenvalue greater than one.
The four factors explained 83 percent of the total variance. The extracted factors
and their factor loadings are illustrated in Table III. Factor 1 is labeled as performance
related benets. Factor 2 is labeled as workers related benets. Factor 3 is labeled as
operational related benets. Factor 4 is labeled as purchasing related benets.
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Factors
Factor 1
loadings
Factor 2
loadings
Factor 3
loadings
Factor 1: informative modication efforts
Improving communication between management
and employees 0.865
Management commitment 0.805
Participating employees in decision making 0.670
Factor 2: skill modication efforts
Changing from individual to group incentives that
are related to JIT accomplishment 0.829
Increasing exibility of work reassignment 0.848
Substituting multi-skilled jobs 0.918
Ensuring ability to work overtime to complete daily
schedules 0.684
Factor 3: educational modication efforts
Training employees 0.835
Building good relations with suppliers 0.722
Training management 0.903
Table II.
Factors related to human
resources modication
efforts
Factors
Factor 1
loadings
Factor 2
loadings
Factor 3
loadings
Factor 4
loadings
Factor 1: performance related benets
Reduction in operations costs 0.625
Reduction in materials handling costs 0.860
Improvement of quality 0.832
Increasing customer satisfaction 0.719
Reduction in manufacturing lead times 0.852
Improvements of competitive position 0.638
Factor 2: workers related benets
Reduction in labor turnover 0.811
Improvements of ability to perform in your job 0.678
Increasing workers participation 0.601
Factor 3: operations related benets
Increased utilization of people, equipment, materials
and parts 0.721
Minimized raw material, work-in-process, and
nished goods inventory 0.769
Reduced paper work 0.903
Improved preventive maintenance 0.751
Factor 4: purchasing related benets
Improved quality and timing of received material 0.651
Improved co-ordination with suppliers 0.883
Improved purchasing function 0.925
Table III.
Factors related to JIT
implementation benets
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In computing Kendall coefcients of correlation between human modication factors
prior to JIT implementation and JIT benets factors, the formula for the Kendall
correlation coefcient is:
Tau
s

1=2NN 21 2T
x
p
1=2NN 21 2T
y
p 1
where T
x
denotes the number of ties on X, and T
y
denotes the number of ties on Y.
Procedures for testing H2. H2 was tested using the Kruskal-Wallis test and one way
analysis of variance (ANOVA) to indicate whether or not there is a difference between
non-JIT companies concerning the problems that impede the implementation of JIT in
the Egyptian industrial sector.
Data analysis
The ndings of the survey
Manufacturing company prole. Type of industry. It appears from Table IV that some
industries were more involved in implementing JIT philosophy than the others, e.g.
food, chemicals and engineering and electronics industries were more involved (16.08
percent, 25 percent and 33.9 percent of JIT companies, respectively).
In contrast, there are several industries where no rms in the sample have
implemented JIT philosophy; such as, the garments and the plastics industries.
This nding supports the results of Billesbach (1991), Norris and Swanson (1994),
and Lawrence and Lewis (1996); who concluded that manufacturing rms in the
engineering and electronics and machinery elds are the major industries in which JIT
has been implemented.
JIT company characteristics. It appears from Table V that the majority of JIT
companies are working in the make-to-order manufacturing environment or
make-to-stock at least part of the time; which suggests that many of these companies
are doing the design according to customers needs and requirements as stated in the
sales order.
JIT rms Non-JIT rms Overall
Description N % N % N %
Textiles 4 7.16 8 21.07 12 12.76
Mining and petroleum industries 0 0.00 0 0.00 0 0.00
Drink and tobacco 7 12.50 4 10.53 11 11.70
Engineering and electronic 19 33.90 6 15.78 25 26.59
Garments 0 0.00 4 10.53 4 4.25
Chemicals 14 25.00 4 10.53 18 19.14
Leather 0 0.00 0 0.00 0 0.00
Wood 3 5.36 3 7.89 6 6.38
Food industries 9 16.08 6 15.78 15 15.95
Paper 0 0.00 0 0.00 0 3.45
Printing 0 0.00 0 0.00 0 0.00
Plastics 0 0.00 3 7.89 3 3.19
Total 56 100.00 38 100.00 94 100.00
Table IV.
Manufacturing rms
classied according to
type of industry
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Moreover, this environment caters for complex products that have many parts and
components (Ong, 1997). This is a similar trend in relation to the manufacturing
environment where JIT companies are working in Mexico as reported by Lawrence and
Lewis (1996).
The JIT philosophy is also more often adopted by manufacturing companies that
work in continuous and repetitive manufacturing processes than in companies with
assembly and fabrication processes.
This is consistent with Moras and Dieck (1992), Vuppalapati et al. (1995), and
Browne et al. (1998) who reported that JIT programs are suited to more repetitive
production with steady demands. This may be driven from the fact that in the JIT
purchasing environment, unexpected delays of the ow of materials from suppliers to
producers can be minimized.
Furthermore, it appears from Table V that JIT elements are more likely to be found
in older companies. The interpretation of this nding is that when the company
becomes mature and more established, it is more willing to invest in innovative
managerial philosophies or renewal programs; such as, MRP II, JIT, TQM or BPR; in
order to react to external and internal pressures (Lawrence and Lewis, 1996; Salaheldin
and Francis, 1998; Aladwani, 1999).
Company size. Figure 1 indicates that 26 (46 percent) of JIT companies are
large manufacturing rms measured by gross sales. This is consistent with the
previous empirical ndings of Schonberger (1986), Jin et al. (1994), and Lawrence
and Lewis (1996); who concluded that as companies increase in size, as measured
by gross sales, they have a greater inclination to implement JIT philosophy.
JIT companies
Non-JIT
companies Overall
Characteristics N % N % N %
Type of products
Make-to-order only 19 33.93 9 23.68 28 29.78
Make-to-stock only 11 19.65 15 39.47 26 27.66
Make-to-order and make-to-stock 26 46.42 14 36.84 40 42.56
Total 56 100.00 38 100.00 94 100.00
Manufacturing process
Assembly only 13 23.22 7 18.42 20 21.29
Fabrication only 8 14.28 9 23.68 17 18.08
Assembly and fabrication 10 17.86 14 36.85 24 25.53
Continuous or repetitive 25 44.64 8 21.05 33 35.10
Total 56 100.00 38 100.00 94 100.00
Age
Less than three years 0 0.00 0 0.00 0 0.00
Four-ve years 2 3.57 0 0.00 2 2.12
six-ten years 0 0.00 6 15.79 6 6.38
11-15 years 10 17.86 10 26.32 20 21.28
More than 15 years 44 78.57 22 57.89 66 70.22
Total 56 100.00 38 100.00 94 100.00
Table V.
Company characteristics
reported by the total
sample
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This result suggests that larger companies have a greater ability to spend money and
tolerate risks for implementing new managerial tools and philosophies, than the small-
or medium-sized companies have.
Human modication efforts to be undertaken in preparation for JIT implementation.
Respondents were asked to list the importance of each of the following human
modication efforts (see Table VI) to be undertaken prior to JIT implementation in
their companies.
It appears from Table VI that training of JIT management and employees on JIT
implementation is the most important modication that should be undertaken prior to
JIT implementation.
Figure 1.
Year 2000 gross sales
Item Mean score
Training management 4.94
a
Training employees 4.80
Building good relations with suppliers 4.61
Improving communication between management
and employees 4.33
Employees participation in decision making 4.07
Management commitment 3.79
Changing from individual to group incentives that
are related to JIT accomplishment 3.56
Substituting multi-skilled jobs 3.04
Increasing exibility of work reassignment 2.46
Ensuring ability to work overtime to complete daily
schedules 2.27
Note:
a
Based on a ve-point scale, score (1) extremely unimportant, and (5) extremely important
Table VI.
Human resources
modication efforts
reported by JIT
companies
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This nding concurs with the ndings of Yasin et al. (2001) who found that training
management and employees is one of the most important modications that should be
undertaken prior to JIT implementation in US manufacturing companies. This result
suggests that the success of the implementation of the JIT philosophy depends on the
way it is implemented, i.e. how has JIT been implemented in manufacturing
companies?
Furthermore, Table VI shows that improving relationships with suppliers is the
third important modication to be undertaken prior to JIT implementation. This may
be derived from the fact that most Egyptian engineering and electronics and chemicals
companies are importing their materials from foreign suppliers.
As a consequence, they have to have a very good relationship with them in order to
have their supplies when they are needed. To a large extent, this result is similar to the
ndings of Lawrence and Lewis (1996), where they found that a good relationship with
suppliers is a signicant factor affecting the successful implementation of JIT in
Mexico.
JIT implementation benets. The benets of JIT implementation were measured by
asking users their opinion about the benets obtained from JIT implementation.
Table VII summarizes the benets obtained from JIT implementation of the total
sample rated by JIT companies in the Egyptian industrial sector. A higher rating
indicates high benets obtained and a lower rating indicates low benets achieved.
The main conclusion drawn from the ndings illustrated below is that JIT
implementations have had a very signicant positive impact on workers.
Improvements in the workers ability to perform their jobs and increased workers
participation received the highest rating by JIT implementers. To a large extent, this
result is similar to Norris and Swanson (1994) who reported that worker motivation,
job satisfaction, and low rate of absenteeism are associated with the successful
implementation of JIT philosophy in the US companies.
Item Mean
a,b
Improved your ability to perform in your job 3.87
Increased workers participation 3.72
Improved purchasing function 3.56
Increased utilization of people, equipment, materials and parts 3.37
Minimized raw material, work-in-process, and nished goods inventory 3.31
Increased customer satisfaction 3.24
Reduced operations costs 2.99
Reduced materials handling costs 2.81
Improved quality 2.73
Improved quality and timing of received material 2.63
Reduced manufacturing lead times 2.51
Reduced labor turnover 2.42
Improved competitive position 2.40
Reduced paper work 2.17
Improved co-ordination with suppliers 2.12
Improved preventive maintenance 2.09
Note:
a
Based upon a four-point scale, score 1 for little benet, 4 for very much benet (n = 56);
b
the higher the mean, the greater the user satisfaction of item
Table VII.
The benets obtained
from JIT implementation
reported by JIT
companies
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Moreover, it appears from Table VII that improved competitive position was a less
commonly recognized outcome of the implementation of JIT philosophy, receiving the
fourth to lowest rating by JIT users.
This result suggests that new managerial tools and philosophies are not used as a
strategic philosophy by beginning implementers, such as Egyptian manufacturing
companies, but it seems to be used as a temporary remedy for business obstacles.
In contrast, this is inconsistent with the ndings of Wafa and Yasin (1998), who
concluded that the success with JIT can be achieved in any country when approached
as a strategic philosophy.
JIT implementation problems. Table VIII shows that the most important
implementation problems are:
.
lack of formal training/education for management and workers; and
.
lack of cooperation with suppliers, respectively.
This concurs with the ndings of Billesbach (1991); Mazany (1995); Wafa and Yasin
(1998); and Yasin et al. (2001) who found that JIT companies did not have formal
training for management and workers; did not have efcient cooperation with their
suppliers; and had less satisfaction with JIT benets than those rms having them.
This result suggests that designing formal training on JIT implementation for both
management and employees is an essential prerequisite for the successful
implementation of JIT programs whether in developed or less developed countries.
Obstacles that impede JIT implementation in non-JIT companies
The ndings in Table IX indicate that about 40.4 percent of companies participating in
the empirical study had not implemented the JIT philosophy. They reported that
limited knowledge about JIT is the biggest obstacle impeding the implementation of
JIT-based on the point of view of non-JIT companies (the higher level of agreement
between respondents SD 0.19).
Testing hypotheses
The rst hypothesis focused on the association between human resource modication
efforts and potential benets obtained from JIT implementation.
Problem Mean score
Lack of formal training/education for management 4.73
a
Lack of formal training/education for workers 4.71
Lack of cooperation of suppliers in correctly supplied materials 4.61
Lack of cooperation of suppliers in timing of supplied materials 4.47
Lack of company expertise in JIT 4.30
Lack of communication between workers and management 4.01
Management resistance 3.89
Employees resistance 3.46
A lack of support from top management 3.15
Lack of support from production management 3.01
Lack of support from material management 2.96
Lack of support from supervisor/foreman 2.68
Note:
a
Based on a ve-point Likert scale, score 1 weak problem; 5 for strong problem (n=56)
Table VIII.
JIT implementation
problems reported by JIT
companies
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365
Table X provides a clear support for the hypothesis, where human resource
modication efforts to be undertaken prior to JIT implementation are signicantly
associated with JIT benets. It is important to note that the correlation values, while
generally signicant, indicate high association overall.
This result suggests that as manufacturing rms increase their investments in
manufacturing infrastructure (as measured by the human resource modication efforts
that should be undertaken prior to JIT implementation), performance effectiveness is
increased (as measured by the benets obtained from JIT implementation).
H2 examines whether or not there is a difference between non-JIT companies
concerning the problems that impede the implementation of JIT. Both Kruskal Wallis
test and one way analysis of variance (ANOVA) showed a signicant difference
between non-JIT companies concerning supplier relationship problems.
An examination of Table XI shows a difference in mean for the relationship obstacle
with suppliers. H2 is partially supported. This nding can be interpreted in the light of
the fact that chemicals and engineering companies are importing most of their needs from
foreign suppliers; therefore, they are more exposed to late suppliers deliveries than those
rms (textiles and food companies) that obtain their needs from domestic suppliers.
To a large extent, this result is similar to the ndings of Alternburg et al. (1999),
who reported that one of the conditions before JIT implementation by the automobile
industry is the need to change supplier relationships and purchasing methods.
Item Mean score
a
SD
b
Limited knowledge about JIT 2.88 0.19
Supplier relationships problems 2.73 0.69
Cost too high 2.11 0.44
Successful without JIT implementation 1.98 0.38
Not felt to achieve big enough benets 1.74 0.31
Potential staff attitude problems 1.39 0.27
Note:
a
Based on a three-point scale 1 for of no signicance and 3 for very signicant (n=38);
b
the
standard deviation presents a measure of agreement among the respondents which means that a high
standard deviation refers to a low level of agreement while a low standard deviation indicates a high
level of agreement (as in Salaheldin and Francis, 1998)
Table IX.
Obstacles that impede JIT
implementation in Egypt
reported by non-JIT
companies
Human modications factors Performance
a
Workers
a
Operations
a
Purchasing
a
1. Informative modication efforts 0.853
*
0.693
*
0.831
*
0.931
*
(45) (45) (45) (45)
0.000 0.000 0.000 0.000
2. Skill modication efforts 0.662
*
0.929
*
0.845
*
0.753
*
(45) (45) (45) (45)
0.000 0.000 0.000 0.000
3. Educational modication efforts 0.817
*
0.861
*
0.891
*
0.759
*
(45) (45) (45) (45)
0.000 0.000 0.000 0.000
Notes:
a
Kendall coefcient of correlation (number of observations);
*
signicance at level 0.05
Table X.
Relationship between
human modication
efforts and JIT benets
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This result suggests that before the implementation of JIT, the methods of purchasing
and inventory management should be modied in order to meet the requirements of
JIT implementation.
Conclusion and managerial implications
Main ndings
The test of hypotheses provides some interesting results about the relationship
between human resource modication efforts and JIT success, including the problems
that impede JIT implementation in the Egyptian industrial sector. The following is a
summary of the statistical ndings:
.
As companies increase their investments in human resource modication efforts
undertaken in preparation for JIT, the operational efciency and performance
effectiveness are increased.
.
Non-JIT companies indicated that the two critical obstacles that hinder JIT
implementation are lack of knowledge of JIT and late supplier deliveries.
.
Results show that the successful implementation of JIT in Egyptian
manufacturing rms is possible. The success demonstrated in the Far East,
USA and Japan can be achieved in Egypt.
.
The current study provides an indication of signicant human modication
factors that affect the implementation of the JIT philosophy within
manufacturing companies; while the large number of statistically signicant
factors affecting JIT implementation reported by the present study were not
reported in previous studies.
.
The survey ndings suggested that JIT implementation is more likely to be in
the food, chemicals, engineering and electronic industries; while less likely to be
found in other industries. Moreover, the need for implementing the JIT
philosophy is likely to be greater when companies are larger and older.
.
Lack of JIT training, education and expertise is identied as a critical problem
encountered in the implementation process of the JIT philosophy.
Managerial implications
This section is devoted to some managerial implications the successful implementation
of JIT philosophy in the Egyptian industrial sector.
JIT companies
Problems K-W
a
ANOVA
Limited knowledge about JIT 0.22 0.14
*
Supplier relationships problems 0.04 0.01
*
Cost too high 0.17 0.09
*
Successful without JIT implementation 0.15 0.17
*
Not felt to achieve big enough benets 0.12 0.11
*
Potential staff attitude problems 0.21 0.23
*
Note:
a
Using Kruskal Wallis and ANOVA;
*
signicant at level 0.05
Table XI.
Signicant levels
(p-values) for the
problems that impede JIT
implementation scored by
non-JIT companies*
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367
.
A very signicant implication of the current study is that the Egyptian
manufacturing companies can use the JIT philosophy as a strategic competitive
weapon; if they use it as a strategic philosophy, rather than a temporary solution
for operations obstacles.
.
Another implication of this study is that manufacturing rms would be advised
to be aware of the connection between human modication efforts that should be
undertaken prior to JIT implementation and the successful implementation of the
JIT philosophy.
.
Decision makers in manufacturing companies should understand that JIT is not
equally effective in all manufacturing environments. It is more effective for
repetitive production with fairly stable demands.
.
One of the main implications of the current study is that the successful
implementation of JIT hinges on the effective modications of purchasing
methods and inventory management in order to meet the JIT implementation
requirements. Moreover, open communication between management and
workers should be a rule rather than an exception.
.
Policy makers in the Egyptian industrial sector should pay more attention to
domestic suppliers to help overcome unexpected delays when purchasing the
required parts and components from foreign suppliers.
.
Non-implementers of the JIT philosophy can take advantage of the experiences of
JIT implementers, which provide a preview of what they can expect to be the
challenges and the pitfalls they need to avoid when they implement JIT.
.
Finally, the research contends that JIT implementation may seem to be an easy
task, but this is a very deceiving thought. The problem is not only how to
implement JIT, but how to make it work effectively.
Recommendations
In the light of the ndings, the following future studies are believed to be essential for a
sounder understanding of the implementation of JIT in less developed countries and in
Egypt in particular.
.
Similar research should be undertaken concerning the implementation of the JIT
philosophy in the private sector.
.
An empirical study is needed to determine how transportation issues affect the
use of JIT purchasing practices.
.
Case studies are needed to present more details regarding JIT implementation
processes.
.
Further research should be undertaken regarding the connection between
logistics and engineering modications prior to JIT implementation with
improvements in operational performance.
Finally, we hope this study opens new dimensions for others to develop more research
in the eld, contributing to the knowledge and enhancement of the implementation of
innovative manufacturing tools and philosophies for the benet of the developing
countries of the third world.
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Note
1. Firms were identied from two sources: the general organization for industrialization (GOFI)
of Egypt and the Egyptian industrial chambers.
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