a study on overall quality assurance in just in time manufacturing process in ahlada engineers pvt....

PROJECT REPORT

Submitted by

SATHISKUMAR M

Register No: 710511631048

In partial fulfillment for the award of the degree

of

COIMBATORE INSTITUTE OF ENGINEERING AND TECHNOLOGY

of

MASTER OF BUSINESS ADMINISTRATION

IN

PRODUCTION

July 2013

A STUDY ON OVERALL QUALITY ASSURANCE IN

JUST IN TIME MANUFACTURING PROCESS IN

AHLADA ENGINEERS PVT. LTD, HYDERABAD

COIMBATORE INSTITUTE OF ENGINEERING AND TECHNOLOGY

COIMBATORE - 641109.

Department of Management and Research Studies

PROJECT WORK

July 2013

This is to certify that the project entitled

A STUDY ON OVERALL QUALITY ASSURANCE IN JUST IN TIME

MANUFACTURING PROCESS IN AHLADA ENGINEERS PVT LTD, HYDERABAD

Is the bonafide record of project work done by

M.SATHISKUMAR

Register No: 710511631048

Of MBA Production during the year 2013.

_____________________ ____________________

Project Guide Head of the Department

Submitted for the Project Viva-Voice examination held on______________

________________ ________________

Internal Examiner External Examiner

DECLARATION

I affirm that the project work titled A Study on overall Quality Assurance in Just In Time

Manufacturing Process in Ahlada Engineers, Hyderabad. Being submitted in partial

fulfillment for the award of MBA is the original work carried out by me. It has not formed the

part of any other project work submitted for award of any degree or diploma, either in this or any

other University.

M.SATHISKUMAR

Reg No: 710511631048

I certify that the declaration made above by the candidate is true

Y.BABU VINOTHKUMAR

ACKNOWLEDGEMENT

I wish to present my heartiest gratitude in the footsteps of my parents who

have taken intense burden for my successful education career.

I wish to place our profound sense of gratitude to our respected Director

Dr.K.A.Chinnaraju and our beloved Principal Dr.N.Nagarajan for providing us

with excellent facilities without which the project would never has been successful.

The respect we shower would really be no match to describe in these words,

for we can really never forget the faith asserted in us by our esteemed Head of the

Department Dr.T.Raju. I am very thankful for his incredible counseling and

encouragement.

I would fail miserably in my duties if I do not maintain the service of her

guidance Mr.Y.Babu Vinothkumar for the support and valuable suggestions in

completing this project without which this project would not have become true.

Place : Sathiskumar M

Date : (710511631048)

Abstract

Abstract

JIT manufacturing is a philosophy by which an organization seeks continually to improve

its products and processes by eliminating waste. Organizations wanting to use the JIT approach

to manufacturing must have several building blocks in place. The building blocks include:

company-wide commitment, proper materials at the right time, supplier relationships, quality,

and personnel. The present work will analyze what have been the results throughout the supply

chain, in terms of inventory management, of those companies who do business with OEMs that

utilize JIT systems. The results of this study should enable managers that have or are considering

implementing or participating in a JIT inventory management system to become more effective.

The JIT system runs smoothly with no peaks or valleys. The typical inventory system, on the

other hand, is fraught with peaks and valleys that represent costs to the organization in the form

of inventory holding costs, back order and stock-out costs, overtime and idle time labor costs,

and waste of materials and space.

List of Contents

List of contents

S.NO CONTENTS PG.NO

1 INTRODUCTION 1 - 16

1.1 Company Profile 2

1.2 Introduction to the Topic 5

1.3 Objectives of the Study 11

1.4 Statement of Problem 13

1.5 Limitations of Study 15

2 REVIEW OF LITERATURE 17 - 22

3 RESEARCH METHODOLOGY 23 - 26

3.1 Research Design 24

3.2 Data Collection 24

3.3 Sampling 25

3.4 Statistical tools 26

4 DATA ANALYSIS AND INTERPRETATION 27 - 46

4.1 Chi-square test 28

5 FINDINGS AND SUGGESTIONS 47 - 53

5.1 Findings 48

5.2 Suggestions 50

5.3 Conclusion 52

6 APPENDIXES 54 - 59

7 REFFERENCES 60 - 61

List of Tables

Sl. No CONTENTS PG.NO

4.1.1 This table shows the association between the age and color

availability objectives of the customer expectations.

29

4.1.2 This table shows the association between education and good

quality perceived by the consumer.

31

4.1.3 This table shows the association between Income level and

Durability by the assurance the manufacturer to the consumer.

33

4.1.4 This table shows the association between satisfaction and

locality by the assurance the manufacturer to the consumer.

35

4.1.5 This table shows the association between training programs and

quality maintenance in geometric dimensioning and tolerance.

37

4.1.6 This table shows the association between on time delivery and

on time logistics scheduling.

39

4.1.7 This table shows the association between on professional attire

and knowledge of representative.

41

4.1.8 This table shows the association between geographical area and

the establishment of the company.

43

4.1.9 This table shows the association between grading aggregates and

profitability of the company.

45

List of Charts

Sl. No CONTENTS PG.NO

4.1.1 This chart shows the association between the age and color

availability objectives of the customer expectations.

30

4.1.2 This chart shows the association between education and good


32

4.1.3 This chart shows the association between Income level and

Durability by the assurance the manufacturer to the consumer.

34

4.1.4 This chart shows the association between satisfaction and

locality by the assurance the manufacturer to the consumer.

36

4.1.5 This chart shows the association between training programs and

quality maintenance in geometric dimensioning and tolerance.

38

4.1.6 This chart shows the association between on time delivery and

on time logistics scheduling.

40

4.1.7 This chart shows the association between on professional attire

and knowledge of representative.

42

4.1.8 This chart shows the association between geographical area and

the establishment of the company.

44

4.1.9 This chart shows the association between grading aggregates and

profitability of the company.

46

List of Abbreviations

SERIAL NO SHORT FORM ABBREVIATIONS

1 JIT Just In Time

2 EDI Electronic Data Exchange

3 MRP - I Material Requirements Planning

4 MRP - II Manufacturing Resource Planning

Introduction

Company Profile

Chapter - 1

1.2 Company Profile

Ahlada engineers private limited is one of the leading manufacturers of Machinery,

Storage Racking Systems. Our products are well accepted within the industry by the leading

Companies requiring the product.

They are an ISO 9001:2008 certified company and was established in the year 2005 with

its team/promoters having a collective experience of over 15 years. AEPL is located in

Hyderabad and has branch offices at New Delhi, Kolkata, Mumbai, Pune, Bangalore, Chandigarh

and Chennai with a strong sales and service network.

They earned a reputation in amongst the best product manufacturers with an equally

efficient service oriented team. The teams result oriented policies of hard work with class

workmanship, and precision have enabled it to win frontline clientele of repute in the shortest

possible time.

They are dedicated to planning, designing, and manufacturing of its products for Clean

room applications, Equipment and Machinery, Storage Racking Systems for Pharmaceuticals,

Bio-technology, Micro Electronics and Other industries. The production technology and range of

products have been continuously enhanced / improved and refined to suit customer needs and

requirements, keeping in view the international standards. And they has a manufacturing unit

which is equipped with world class infrastructure, highly advanced and sophisticated CNC

controlled machinery.

They have a factory building and plant to an extent of 2,70,000 Sq.ft land with 2,00,000

sq.ft production area with adequate power and water connection. As ours is a complete

fabrication work unit, we have evolved, developed and installed in-house facilities for all the

operations.

And they grow rapidly along with technological developments to provide the world class

quality.

Mission

To achieve excellence in manufacturing and a leading market share, globally

Vision

"Our vision is simple. We build lifelong relationships through our interactive designs,

attention to detail, adherence to strict schedules and project completion to predetermined budgets

and quality standards".

Core Principle Values

Professionalism, Transparency, Integrity, Total Customer Focus & Zero PPM.

Quality Policies:

They follow stringent quality norms by maintaining high quality raw material, periodic in-process

inspections and itemized reporting. Due to the strong and continuous effort of the company, we have

successfully achieved the trust of elite companies, and are proud to be among very few vendors to be

given the green channel route of supply.

We are also flexible with 3rd party quality inspection which allows our customers to have quality

inspected here at our manufacturing site itself. They are well equipped with machines for testing and

inspection and follows a stringent time based inspection relating to inward, in-process and final

movement of its products.

Advanced quality measures taken at Ahlada ensure that focus is on Quality, not only of our

products but also of our processes and our people. This has enabled us to stand tall amongst our

competitors in market across the world. We are a customer driven organization focused on achieving

and exceeding customer expectations.

Structure of the Efforts Towards Quality

Quality Policy, Quality Objectives

1. Control of Documents & records

2. Control of non - conforming product and service

3. Quality Policy, Quality Objectives

4. Control of Documents & records

5. Control of non - conforming product and service

Introduction to the Topic

1.3 Introduction:

It is an inventory strategy implemented to improve the return on investment of a business by

reducing in-process inventory and its associated costs. The process is driven by a series of signals, or

Kanban are usually tickets but can be simple visual signals, such as the presence or absence of a part on

a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing

organization's return on investment, quality, and efficiency.

New stock is ordered when stock drops to the re-order level. This saves warehouse space and

costs. However, one drawback of the JIT system is that the re-order level is determined by historical

demand. If demand rises above the historical average demand, the firm will deplete inventory faster

than usual and cause customer service issues. To meet a 95% service rate a firm must carry about 2

standard deviations of demand in safety stock. Forecasted shifts in demand should be planned for

around the Kanban until trends can be established to reset the appropriate Kanban level. Others have

suggested that recycling Kanban faster can also help flex the system by as much as 10-30%. In recent

years manufacturers have touted a trailing 13 week average as a better predictor than most forecasters

could provide the details.

A related term is Kaizen which is an approach to productivity improvement literally meaning

"continuous improvement" of process.

History:

The technique was first used by the Ford Motor Company This describes the concept of "dock to

factory floor" in which incoming materials are not even stored or warehoused before going into

production. The concept needed an effective freight management system (FMS) Ford's Today and

Tomorrow (1926) describes the technique was subsequently adopted and publicised by Toyota Motor

Corporation of Japan as part of its Toyota Production System (TPS).

Japanese corporations cannot afford large amounts of land to warehouse finished products and

parts. Before the 1950s, this was thought to be a disadvantage because it forced the production lot size

below the economic lot size. (An economic lot size is the number of identical products that should be

produced, given the cost of changing the production process over to another product.) The undesirable

result was poor return on investment for a factory.

The chief engineer at Toyota in the 1950s, Taiichi Ohno, examined accounting assumptions and

realized that another method was possible. The factory could implement JIT which would require it to

be made more flexible and reduce the overhead costs of retooling and thereby reduce the economic lot

size to fit the available warehouse space. JIT is now regarded by Ohno as one of the two 'pillars' of the

Toyota Production System.

Therefore over a period of several years, Toyota engineers redesigned car models for

commonality of tooling for such production processes as paint-spraying and welding. Toyota was one of

the first to apply flexible robotic systems for these tasks. Some of the changes were as simple as

standardizing the whole sizes used to hang parts on hooks.The number and types of fasteners were

reduced in order to standardize assembly steps and tools. In some cases, identical subassemblies could

be used in several models.

Toyota engineers then determined that the remaining critical bottleneck in the retooling process

was the time required to change the stamping dies used for body parts. These were adjusted by hand,

using crowbars and wrenches. It sometimes took as long as several days to install a large (multiton) die

set and adjust it for acceptable quality. Further, these were usually installed one at a time by a team of

experts, so that the line was down for several weeks. So Toyota implemented a strategy called Single

Minute Exchange of Die (SMED), developed by Shigeo Shingo. With very simple fixtures, measurements

were substituted for adjustments. Almost immediately, die change times fell to hours instead of days. At

the same time, quality of the stampings became controlled by a written recipe, reducing the skill level

required for the change. Further analysis showed that a lot of the remaining time was used to search for

hand tools and move dies. Procedural changes (such as moving the new die in place with the line in

operation) and dedicated tool-racks reduced the die-change times to as little as 40 seconds. Today dies

are changed in a ripple through the factory as a new product begins flowing.

After SMED (single minute exchange of die), economic lot sizes fell to as little as one vehicle in

some Toyota plants. Carrying the process into parts-storage made it possible to store as little as one part

in each assembly station. When a part disappeared, that was used as a signal (Kanban) to produce or

order a replacement.

Just-in-time (JIT) inventory systems are not a simple method that a company can adopt; it has a

whole philosophy that the company must follow in order to avoid its downsides. The ideas in this

philosophy come from many different disciplines including; statistics, industrial engineering, production

management and behavioural science. In the JIT inventory philosophy there are views with respect to

how inventory is looked upon, what it says about the management within the company, and the main

principle behind JIT. Inventory is seen as incurring costs, or waste, instead of adding value, contrary to

traditional thinking. This does not mean to say that JIT is unaware that removing inventory exposes

manufacturing issues. Under the philosophy, businesses are encouraged to eliminate inventory that

doesn’t compensate for manufacturing issues, and to constantly improve processes so that inventory

can be removed. Secondly, allowing any stock habituates the management to stock and it can then be a

bit like a narcotic. Management are then tempted to keep stock there to hide problems within the

production system. These problems include backups at work centres, machine reliability, process

variability, lack of flexibility of employees and equipment, and inadequate capacity among other things.

In short, the just-in-time inventory system is all about having “the right material, at the right time, at the

right place, and in the exact amount” but its implications are broad for the implementers.

Four Basic Conditions:

There are different points of view about the elements that led the approach to productivity. E.

Hay (1988) understands that there are six internal factors and one externally focused element, the

purchasing activity. On the other hand Harrison (1992) explains the "core techniques" of waste

elimination, total quality and people preparation; however I will follow Cheng and Podolsky's (1993)

structure to present the necessary conditions for the JIT implementation.

People Involvement:

Whoever is related to the company that intends the implementation, shall be committed

to the project. Starting with the machine operators and ending on the high level management,

everybody has not only to be aware of the implications but to support the implementation as well.

Implementation is a critic phase of JIT, and is advisable to avoid problems, to reduce the amount of

time and efforts throughout this stage.

Plants:

Numerous changes take place in the layout of the "new" plant. Some changes are easy to

achieve as the so called productions cells, in which the machinery is located in a way that helps

reducing the time it takes to move materials from one process to another. Nevertheless the

introduction of Kanban (Japanese name of the cards that confirm material requirements), self-

inspection, Material Requirement Planning ("MRP") and MRP II (in case they were not already in

use) and job enrichment within plant workers, involve structural change thus they are far from being

simple to implement. MRP I involves a computer system for building inventory, scheduling the

production and to administrate inputs; on the other side MRP II, that stands for Manufacturing

Resource Planning, includes the MRP I’s activities plus marketing and purchasing operations and the

financing function.

Systems:

Existent systems may remain within the company, however the MRP and MRP II systems should

be implemented. Further investments can take place, as the use of luminous Kanbans or the

implementation of the Electronic Data Interchange ("EDI") to link inventory existence with suppliers

Purchasing:

Relationships with suppliers become a key factor not only in a JIT environment but in other

production systems that intend to reach efficiency and to shorten production time.

Quality in JIT:

According to Hay (1998) states that JIT brings a number of unique elements to a total

quality environment. From an interesting point of view he presents the counterpart of Just in

Time benefits. These are "Immediate Feedback", "Slower Run Speeds" and "Stopping the Process".

The under demand pull system gives immediate information about the situation, now defects

can be detected within two hours, or two minutes or even while they are still happening rather than

ten days or two weeks later. The production schedule, under JIT is not pressing any more to work as

fast as possible, instead frequency is set by the demand, the machinery is not forced and the process

becomes predictable. (as the traditional theory teaches) but to take advantage of it detecting a

defective part and not letting another problem to happen again.

Steps for Achieving Quality Assurance in JIT:

Always follow standard operations.

Establish “one-piece flow” whenever possible to Mini-Mize manufacturing

Lead-time.

Stop the line whenever a defective item is produced.

Act immediately to make an improvement that goes right to the source of the problem.

“Quality is built into products at each process.”

Objectives of Study

1.4 Objectives of the study

Primary Objective:

To analyse the factors influencing the "Overall Quality Assurance in just in Time"

production process.

Secondary Objectives:

To know the Customer Expectations

To know the values of the quality perceived by the consumer

To know the durability of the manufacturer to the consumer

Statement of the Problem

1.5 Statement of Problem:

Traditionally, a manufacturing business competes on price, quality, variety, after service, etc.

Now, these conditions are merely prerequisites. Few businesses exist today without offering this

requirement, and the key competitive factor has become speed. Major businesses have been trying to

adopt new business initiatives in order to stay alive in the new competitive market place. Just in time

production system is one of these initiatives that focus on cost reduction by eliminating non-value

added activities. These tools and techniques of JIT have been widely used in both discrete and process

industry starting with the introduction of the original Toyota production system.

The production system of Ethiopian industries in today's global market including the

industries in focus has been suffering from a lot of challenges. Most of the problems are internal, but

some external problems also exist. In general the problems like:

High production cost.

High concentration of waste.

Inflexibility of the process and workforce.

High inventory costs.

Lower employee involvement for the overall improvement of the factory, and

High defects and reworks are few due mentioned.

While it seems that some JIT tools are difficult to adapt in our industries, it is possible to implement

most of JIT techniques at first and implement the difficult tools gradually.

Therefore, in order to compete in today's global competitive market our industry, The researcher

believed that JIT implementation in this factory would lead them on the competitive and leading line of

the country.

Limitations of Study

1.5 Limitations of Study:

There were certain limitations in undertaking this research work. As it is understood that the limitations

are a part of the project, they have been overshadowed by the benefits of the study.

Culture Differences The organizational cultures vary from firm to firm. There are some

cultures that tie to JIT success but it is difficult for an organization to change its cultures

within a short time.

Traditional Approach The traditional approach in manufacturing is to store up a large

amount of inventory in the means of backing up during bad time. Those companies rely

on safety stocks may have a problem with the use of JIT.

Difference in implementation of JIT Because JIT was originally established in Japanese,

it is somehow different for implementing in western countries. The benefits may vary.

The survey conducted may not be considered as comprehensive as only limited

respondents could be contacted because of the time constraint.

Objectives and the purposes of the study and the questions had to be explained to the

respondents and their responses may be biased.

Some of the respondents were reluctant to give their responses.

Only limited sample size had been considered for the study and therefore, the conclusions

drawn based on this may not be a reflection of the entire population.

Review of Literature

Chapter-2

Review of literature

Juran’s definition of quality is simultaneous attempts to be a level one and level two definition.

He defines quality based on a multiple meaning, namely

“Quality consists of those product features which meet the needs of customers and

thereby provide product satisfaction.

“Quality consists of freedom from deficiencies."

A practical definition of quality is probably not possible, and

Quality is apparently associated with customers’ requirements, and fitness suggests

conformance to measurable product characteristics (Juran 1988).

Goodman, O‘Brein & Segal (2000) support the aforementioned viewpoints by defining quality as

consistently producing what the customer wants, while reducing errors before and after delivery to the

customer. The quality definition of fulfilling or exceeding customers‘ needs has become an ideological

trailblazer driving the pursuit of customer satisfaction. In the embedding of quality thinking this

ideological core plays an important role. More importantly, however, quality is not so much an outcome

as a ever-ending process of continually improving the quality of what an institution produces. There is

no doubt that many institutions have so well ordered their capability to meet their customers’

requirements, time and time again, that this has created a reputation for “excellence”. Institutions must

“delight” the customer by consistently meeting customer requirements, and then achieve a reputation

of “excellence”. Quality should be viewed from the perspective of the customers and potential

customers. The aim of institutions should be to satisfy existing needs of customers with quality products

or services, and to identify, anticipate and create new needs. This requires the cultivation of a close

relationship between the institution and its customers.

(Garg et al., 1995) have found 'work culture' a critical element if a company wants to implement JIT.

Adopting JIT culture in India is not an impossible task. According to them, dimensions of work culture in JIT

include multifunctional workers, long term employment, motivation and trust, top management attitude and

commitment, support from union leaders, effective communication, poka yoke inspection method, and

incentive scheme. It is felt that JIT could be a great opportunity for India in the context of recent reforms in

economy and trade towards opening of economy and globalization. Some benefits attained in quantified

form were also presented when some elements (quality circles, suggestion schemes, kaizan etc.) were

applied in an Indian automobile company.

(Garg et al., 1996] examined critically JIT purchasing in Indian context. An analysis of a questionnaire

supplied to various industries is carried out with the help of statistical tests. A test of significance (t-test) was

applied for the importance of JIT attributes, problems in implementing JIT attributes, and expected

percentage benefits of JIT purchasing implementation. There was an indication that Indian industries were

giving importance to JIT attributes, facing some problems in implementing JIT, and expecting an overall

benefit on an average 59.8% if JIT purchasing is fully implemented. Tests confirmed that the scope of JIT

implementation in India was fair and it was independent of the type of industries, layout, and number of

employees. Small industries were more optimistic than large and medium scale industries about JIT

implementation.

(Kumar and Garg, 2002] took a closer look on JIT implementation problems and benefits in Indian

context. A survey of Indian industries was conducted to identify those JIT elements which are highly difficult

to implement, those which are easy to implement in Indian context and to identify the most expected JIT

benefits in Indian context. It was found perfect JIT implementation may not be feasible in most Indian

industries due to lack of resources, lack of technology, non availability of multifunctional workers etc.

However, some elements such as continuous improvement, layout improvement, quality circles, small lot

size etc. are easy to implement as reported by Indian industries. Therefore maximum weight age must be

given to these elements to reap maximum benefits. The elements which found to be difficult to implement

included zero defects, automation and autorotation, JIT purchasing, kanban system, set up time reduction

etc. Reduced work in process, reduced purchase lot size reduced production lead time, improved

competitive position etc. were found some of the high ranked expected benefits as a result of JIT

implementation.

(Prem Vrat et al., 1993) have identified problems in JIT implementation in Indian context. These

included poor quality of incoming material, non-receipt of delivery by buyer of exact quantity on exact

time, little workers' motivation, unreliable transportation system etc. The Delphi study carried out by

(Prem Vart et al., 1993) indicated the JIT index to be 23.38 on a 40 point (0-40) scale, implying that

though quite difficult, JIT implementation in India is possible. It may take 10-20 years for JIT to be fully

implemented in Indian industries. It further stated that in order to become competitive, the Indian

industry can't ignore the idea of JIT. The study also indicated that attention must be focused on poka

yoke inspection methods, reduced setup times, 100 % quality of incoming material, kanban system,

delivery by the vendor of exact quantity on exact time to achieve the results. Worker motivation and

literacy need to be increased.

(Kolay, 1993)] suggested an approach to assess a vendor on an overall performance index, which

was certainly useful in the area of supplier management in Indian context. (Kumar et al. 2002) reported

that several Indian industries were implementing basic principles of just-in-time (JIT) in a fragmentary

framework of Total Quality Management (TQM) with the belief that it would be helpful in facing global

competition. The present status of JIT/TQM quality techniques in India had been analyzed through a

survey of 46 Indian industries. The survey indicated that techniques such as quality circle, total

preventive maintenance, cause and effect diagram, kaizen, JIT purchasing etc. require more attention

since their implementation may be helpful to improve present position of Indian industries in the areas

of quality, cost and flexibility.

Mahadevan [1997] through survey investigated how far the Indian companies they are ready for

Just-in-Time. Findings suggest TQM and vendor development efforts precede the launch of major JIT

programmes. Automobile Industry in the country has made significant improvements in areas such as

multi-skilling of work force, setup time reduction and small lot sizes. TQM, TPM, and JIT purchasing

constitute the basic requirements for successful JIT implementation. It has also been suggested that JIT

and TQM must go together. JIT provides an organizational frame work for the exposure of waste and

problems, TQM provide and organizational framework to solve these problems. The author is of the

view that Indian companies are slow in exploiting the far reaching effects of JIT implementation.

(Garg & Deshmukh, 1999] reviewed and classified the literature on JIT purchasing. The literature

was reviewed and classified as conceptual articles, survey, case studies, and empirical/modelling work.

The relative importance of JIT purchasing attributes had been identified. A survey of the attributes was

carried out in Indian context. Attributes of high quality, mutual trust and cooperative relationship,

reliable delivery, increased customer and supplier's support was among the attributes that were given a

very high importance by Indian industries. This study had also predicted a better scope of JIT

implementation in India compared to an earlier study. The results of a case study in JIT implementation

of an Indian tractor assembly were presented in this paper. Significant benefits were achieved by

reductions in inventory, material movement, space, manpower, work-in-process and lead-time and an

increase in productivity and quality as a result of JIT purchasing implementation. The key steps in

implementation were: extensive training of employees on pull concept, identification of key

performance parameters; new layouts based on U-shaped cells, standardization of operations, a

maintenance plan for each machine, housekeeping, visual control and multi skill training. It has also

been found that most of the identified JIT purchasing attributes were given strong emphasis.

(Gupta et al. 2003) investigated the role of JIT in service sector through case study of an

educational institute. The study was focused on admission process of the students. Existing process was

characterized by: long waiting time for students and their parents, long duty hours for staff, poor

information system leading to unrest and confusion etc. To encounter the difficulties in the existing

system, a new process was proposed in JIT context. Key JIT element of successful JIT installation in this

environment involved GT type cell layout, Kanban, multi skill workforce. It will reduce significantly the

number of days to complete the whole process and will make everybody satisfied with the service

provided. A survey (Gupta et al. 2004) of Indian service sector has been conducted to determine the

relevance of JIT in service sector in Indian context. A questionnaire was developed and administered to

80 service industries. Responses from 43 industries (Response rate 54%) were obtained. Data is

compiled and analyzed. Firstly, it is done by factor analysis on a scale (0-100) .The mean score for the

importance of JIT elements taken together as perceived by the respondents was found to be 75.75

(Maximum importance=100) which can be interpreted as fairly good . The mean score for problems in

implementation taken together was found to be 73 (Maximum for no problem in implementation=100)

which can be interpreted as little problems in implementation. Similarly mean score for expected

benefits taken together as a result of JIT implementation was found to be 75.75(Maximum benefit=100)

which can be interpreted as high benefits as a result of JIT implementation. Some JIT elements, which

are comparatively easy to implement, are also identified in the survey. These are quality improvement

techniques, standardization, process simplification, lay out improvement, quality circles etc. Attention

must be focused on these elements so that maximum benefits can be obtained

Research Methodology

Chapter-3

Research Methodology

Research methodology is the way to systematically solve a problem. A research methodology

consists of various steps. A researcher should have detailed knowledge before implementing all the

steps of the research methodology. The researcher must design the steps of research methodology

focusing on the research objectives and the logic behind it. Thus when we talk of research methodology,

we not only talk about the research methods, but also consider the logic behind the methods. Keeping

the concept in mind, the study designs the following research methodology.

3.1 Research Design:

When designing research, one is faced with a continual series of trade-offs. Since there

are tropically numerous design alternatives that will work, the goal is to find the design that

enhances the value of the information obtained, while reducing the cost of obtaining

it.”(Malhotra.N.K, 2005).

Research design is the plan, structure to answer whom, when, where and how the subject is

under investigation. Here plan is an outline of the research scheme & which the researcher has to

work. The structure of the research is a more specific outline and the strategy out, specifying the

methods to be used in the connection & analysis of the data.

3.2 Data Collection

The main source of information for this study is based on the data collection. Data collected are

both primary and secondary in nature.

Primary Data:

Primary data have been directly collected from the rural customers in the Coimbatore district by

survey method through undisguised structured questionnaire.

Questions like open ended, close ended and multiple choice have been used for the purpose of data

collection.

Secondary Data:

Secondary data have been collected from official website of manufacturing company and also

from other official websites related to production industry.

Types Of Questions

Open ended question:

Open ended question are the type of question used to get suggestion from the respondent in

order to give feed back to the organization.

Close ended question:

Close ended question are the type of questions with a clear declined set of alternatives that

confine the respondents to choose one of them.

Multiple choice question:

It consists of multiple choices in which the respondents can choose more than one

Likert scale:

It uses 4 point scale to elicit respondent’s favor or unfavor towards an object.

3.3 Sampling:

The present study is empirical and analytical in nature, and it is based on primary data

collected from the customers with the help of a well-structured comprehensive questionnaire.

The sample size was 50 respondents (Consumers)

And the another sample size was 100 (Company Employers)

Totally 150 respondents, And the manufacturing industry were identified from Hyderabad

by proportionate stratified sampling method.

Hypothesis:

Knowledge of the service existence by the customers influences the users level of

satisfaction.

3.4 Statistical Tools and Analysis:

Tools used for analysis are:

1. Chi-square test

2. Graph

1. Chi-square test:

There may be situation in which it is not possible to make any rigid assumption about

distribution of the population from which samples being drawn. This limitation has led to the

development of a group of alternative techniques known as non-parametric tests. Chi-square describes

the magnitude of the discrepancy between theory and observation. In order to achieve the objectives

taken up in the study, chi-square test have been used to test the level of significance.

χ² = ∑ [(Oi – Ei) 2] with n-1 degrees of freedom

i =1 Ei

2. Graphs:

Graphical method was used in order to represent the factor in various graphical methods

like pie-chart, bar diagram and cylinder.

Data Analysis & Interpretation

Chi - square

Chapter - 4

4.1 Chi -Square Test

Table - 4.1.1

This table shows the association between the age and colour availability objectives of the customer

expectations.

Age Colour texture Total

Strongly

Agree

Agree Neutral Dis-Agree

below 20 1 0 1 0 2

20-30 8 17 7 1 33

30-40 2 5 4 0 11

40-50 1 1 1 0 3

Above 50 1 0 0 0 1

Total 13 23 13 1 50

Chi- Square Test

Chi-Square Tests Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 6.638a 12 .881

Likelihood Ratio 7.505 12 .823

Linear-by-Linear

Association .176 1 .675

N of Valid Cases 50

AH: There is an association between the age and colour texture in the objectives of the customer

expectations.

NH: There is no association between the age and colour texture in the objectives of the customer

expectations.

Chart - 4.1.1

This chart shows the association between the age and colour availability objectives of the customer

expectations.

Chi-Square value = .881

Inference: There is no association between the age and colour texture in the objectives of the customer

expectations.

Age/color

below 20

20-30

30-40

40-50

Above 50

Table - 4.1.2

This table shows the association between education and good quality perceived by the consumer:

Education Good Quality Total

Strongly

Agree

Agree Neutral Dis-Agree

school level 4 5 0 0 9

Diploma 4 4 1 0 9

Ug 5 13 1 1 20

Pg 2 5 2 1 10

Others 2 0 0 0 2

Total 17 27 4 2 50

Chi- Square Test

Chi-Square Tests Value df Asymp. Sig. (2-sided)



Linear-by-Linear

Association 1.331 1 .249

N of Valid Cases 50

AH: There is an association between the education and good quality in the objectives of quality

perceived by the consumer.

NH: There is no association between the education and good quality in the objectives of quality


Chart - 4.1.2

This chart shows the association between education and good quality perceived by the consumer:


Inference: There is no association between the education and good quality in the objectives of quality


Education/ Good quality

school level

Diploma

Ug

Pg

Others

Table - 4.1.3

This table shows the association between Income level and Durability by the assurance the

manufacturer to the consumer:

Income Level Durability Total

Strongly

Agree

Agree Neutral Dis-Agree Strongly

Disagree

below 10k 2 12 2 1 0 17

10-20k 2 7 3 0 0 12

20-30k 2 6 3 1 0 12

30-40k 1 3 2 0 0 6

Above 40k 0 1 0 1 1 3

Total 17 27 4 2 50

Chi- Square Test


Pearson Chi-Square 24.212 16 .085


Linear-by-Linear


N of Valid Cases 50

AH: There is an association between the income level and durability by the assurance the manufacturer

to the consumer

NH: There is no association between the income level and durability by the assurance the manufacturer

to the consumer

Chart - 4.1.3

This chart shows the association between Income level and Durability by the

assurance the manufacturer to the consumer


Inference: There is no association between the income level and durability by the assurance the

manufacturer to the consumer

Table - 4.1.4

Income level/Durability

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

This table shows the association between satisfaction and locality by the assurance the manufacturer

to the consumer:

Satisfaction Locality

Total Rural Urban

Strongly Agree 8 1 9

Agree 6 5 11

Neutral 20 6 26

Dis-Agree 0 3 3

Strongly Disagree 1 0 1

Total 35 15 50

Chi- Square Test




Linear-by-Linear


N of Valid Cases 50

AH: There is an association between satisfaction and locality by the assurance the manufacturer to the

consumer.

NH: There is no association between satisfaction and locality by the assurance the manufacturer to the

consumer.

Chart - 4.1.4

This chart shows the association between satisfaction and locality by the assurance the manufacturer

to the consumer:


Inference: There is an association between satisfaction and locality by the assurance the manufacturer

to the consumer.

Sales

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Table - 4.1.5

This table shows the association between training programs and quality maintenance in geometric

dimensioning and tolerance:

Training programs

Quality maintenance

Total Strongly

Agree

Agree Neutral Strongly

Disagree

Strongly Agree 20 14 3 0 20

Agree 22 14 5 0 22

Neutral 6 7 3 1 5

Dis-Agree 2 0 0 0 2

Strongly Disagree 1 0 1 1 1

Total 51 35 12 2 50

Chi- Square Test




Linear-by-Linear


N of Valid Cases 100

AH: There is an association between training programs and quality maintenance

NH: There is no association between training programs and quality maintenance

Chart - 4.1.5

This chart shows the association between training programs and quality maintenance in geometric

dimensioning and tolerance:


Inference: There is an association between training programs and quality maintenance.

Training/Quality maintainence

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Table - 4.1.6

This table shows the association between on time delivery and on time logistics scheduling:

On time

Delivery

On time logistics Total

Strongly

Agree

Agree Neutral Dis-

Agree

Strongly

Disagree

Strongly Agree 16 20 8 2 0 46

Agree 16 21 5 3 1 46

Neutral 2 1 0 0 1 4

Dis-Agree 1 0 1 0 0 2

Strongly

Disagree 0 1 0 0 1 2

Total 35 43 14 5 3 100

Chi- Square Test




Linear-by-Linear



AH: There is an association between on time delivery and on time logistics scheduling.

NH: There is no association between on time delivery and on time logistics scheduling.

Chart - 4.1.6

This chart shows the association between on time delivery and on time logistics scheduling:


Inference: There is an association between on time delivery and on time logistics scheduling.

On time delivery/On time logistics

Strongly Agree

Agree

Neutral

Dis-Agree

Strongly Disagree

Table - 4.1.7

This table shows the association between on professional attire and knowledge of representative:

Professional

attire

Knowledge of representative Total

Strongly

Agree


Disagree


Agree 17 12 7 0 0 46

Neutral 9 3 3 3 0 4

Dis-Agree 1 0 0 0 0 2

Total 43 32 18 6 1 100

Chi- Square Test




Linear-by-Linear

Association .530 1 .467


AH: There is an association between on professional attire and knowledge of representative.

NH: There is no association between on professional attire and knowledge of representative.

Chart - 4.1.7

This chart shows the association between on professional attire and knowledge of representative:


Inference: There is no association between on professional attire and knowledge of representative.

Sales

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Table 4.1.8

This table shows the association between geographical area and the establishment of the company:

Geographic

area

Well established Total

Strongly

Agree


Disagree


Agree 20 22 7 1 2 52

Neutral 1 5 0 1 0 7

Dis-Agree 1 0 0 0 0 1

Total 31 42 18 6 3 100

Chi- Square Test




Linear-by-Linear



AH: There is an association between geographical area and the establishment of the company.

NH: There is no association between geographical area and the establishment of the company.

Chart - 4.1.8

This chart shows the association between geographical area and the establishment of the company:


Inference: There is an association between geographical area and the establishment of the company

Sales

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Table - 4.1.9

This table shows the association between grading aggregates and profitability of the company:

Grading

aggregates

Profitability Total

Strongly

Agree


Disagree


Agree 11 8 6 2 1 28

Neutral 12 9 4 1 0 26

Dis-Agree 0 1 3 0 0 4

Total 1 0 0 0 1 2

Chi- Square Test




Linear-by-Linear



AH: There is an association between grading aggregates and profitability of the company.

NH: There is no association between grading aggregates and profitability of the company.

Chart - 4.1.9

This chart shows the association between grading aggregates and profitability of the company:


Inference: There is an association between grading aggregates and profitability of the company.

Grading aggregates/Profitability

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Findings and Suggestions

Findings

Chapter - 5

5.1 Findings

There is no association between the age and colour texture in the objectives of the

customer expectations.

There is no association between the education and good quality in the objectives of


There is no association between the income level and durability by the assurance the

manufacturer to the consumer.

There is an association between satisfaction and locality by the assurance the

manufacturer to the consumer.

There is an association between training programs and quality maintenance.

There is an association between on time delivery and on time logistics scheduling.

There is no association between on professional attire and knowledge of representative.

There is an association between geographical area and the establishment of the company.

There is an association between grading aggregates and profitability of the company.

Suggestions

5.2 Suggestions

The implementation model of JIT developed for the companies are made with the

consideration of where the companies are at the moment. Their readiness is rated at their infancy stage

to implement JIT. Therefore, the line implementation model should be followed sequentially without

shortcutting or jumping any of the steps.

Impatient and lack of preparation of proper foundation on which to make changes.

Skipping the small, preliminary projects and jumping directly to the large projects

such as pull production system.

Implementing one or two JIT techniques and expecting the benefits associated with

implementing a complete JIT production system.

Under estimating the difficult of changing their production system to JIT.

Setting insufficient resources aside for ongoing training and development of

employees.

Champions are promoted out of implementation projects before the projects are

completed.

The companies are not prepared to loosen their control over inventories, production

planning and control, shop floor activities, etc, enough to let JIT work.

Conclusion

5.3 Conclusion

Hence we can see that to have a Total JIT manufacturing system, a company-wide commitment,

proper materials, quality, people and equipments must always be made available when needed. In

addition; the policies and procedures developed for an internal JIT structure should also be extended

into the company's supplier and customer base to establish the identification of duplication of effort and

performance feedback review to continuously reduced wastage and improve quality. By integrating the

production process; the supplier, manufacturers and customers become an extension of the

manufacturing production process instead of independently isolated processes where in fact in clear

sense these three sets of manufacturing stages are inter-related and dependent on one another. Once

functioning as individual stages and operating accordingly in isolated perspective; the suppliers,

manufacturers and customers can no longer choose to operate in ignorance. The rules of productivity

standards have changed to shape the economy and the markets today; every company must be

receptive to changes and be dynamically responsive to demand. In general, it can be said that there is no

such thing as a KEY in achieving a JIT success; only a LADDER; where a series of continuous steps of

dedication in doing the job right every time is all it takes.

Appendixes

Chapter - 6

Appendixes

Questionnaire: Customer:

Name: __________________________________

Age

A) Below 20yrs B)20 - 30yrs C)30 - 40yrs D)40 - 50yrs E) Above 60yrs

Education

A) School level B) Diploma C) UG D) PG E) Others

Income Level

A) Below 10k B) 10 - 20k C) 20-30k D) 30 - 40k E) Above 40

Locality

A) Rural B) Urban

1 - Strongly Agree 4 - Dis Agree

2 - Agree 5 - Strongly Dis Agree

3 - Neutral

A) To know the Customer Expectations

Sl.No 1 2 3 4 5

1 The door has perfect size & dimensions

2 Variety of colors and textures are wide

3 The door designs can be customizable

4 The door has posh look & finish

5 Availability is wide

B) To know the values of the quality perceived by the consumer:

Sl.No 1 2 3 4 5

6 The door has good quality

7 Cost of this door is affordable

8 Raw materials used in the door is superior quality

9 This door is strong

10 Locks can be easily mounted and it is heavily built

C) To know the assurance of the manufacturer to the consumer:

Sl.No 1 2 3 4 5

11 The door's durability is high

12 The doors are eco - friendly

13 Quality of the doors are 100% satisfactory

14 Warranty/Guarantee coverage are easily by the wide

manufacturers

15 Service provided by the manufacturer is satisfactory

Questionnaire: Company

Please rate the following questions:

1 - Strongly Agree 4 - Dis Agree

2 - Agree 5 - Strongly Dis Agree

3 – Neutral

Sl.No 1 2 3 4 5

1 The company delivers the product on time

2 They balance Lead Time perfectly

3 Monitoring downtime is good

4 Quality related training programs are good

A) Geometric Dimensioning and Tolerance:

Sl.No 1 2 3 4 5

1 Drawing Interpretation is well organized

2 LEAN Manufacturing is perfectly planned

3 Statistical Process Control is need by the time of

production

4 SPC is regularly implemented, only through customer

requirements

5 Willingness of sharing the cost information to the

team is satisfactory

6 Reduction in product manufacturing cost due to

market conditions are acceptable

7 Dock-to-Stock with any customers is acceptable

8 On-time scheduling of logistics is perfect

9 Quality of maintenance program of the equipments

are regularly monitored

B) Documentation of reporting system in track metrics are good:

Sl.No 1 2 3 4 5

1 Scrap

2 Rework

3 Delivery

4 Productivity

5 Frequency in Distribution of internal non-

conformance reports are acceptable

6 Level of corrective action internally is advisable

7 Industry/marketplace have a wider knowledge on

product manufacturing

8 The company is well established

9 Capable in consulting the team and consumers

balanced

10 Wage, technology and tools are perfect

11 Personal Referral is acceptable

12 Lowest rate of raw material produced at this time of

production

13 Responsiveness to requests is on time

14 Value-added services provided by the company is

satisfactory

15 The responses from the team are put in action

immediately

16 The response of QC department in customer need is

good

17 The knowledge level of your Representative is high

18 Overall, how do you rank our services to you

C) Factors

1) Periodic in-process inspections:

Sl.No 1 2 3 4 5

1 Geographic Area

2 Environment

3 Life of Structure

4 Independent Assessment

5 Precautionary Measures

2) Professionalism:

Sl.No 1 2 3 4 5

1 Training

2 Significance

3 Professional Attire

4 Time at Work

5 Identification

3) Integrities:

Sl.No 1 2 3 4 5

1 Protect

2 Promote

3 Anchor

4 Preserve

5 Guide

4) Workability:

Sl.No 1 2 3 4 5

1 Proportions

2 Size Aggregate

3 Shape of Aggregate

4 Ratio & Course of Aggregates

5 Grading Aggregates

5) Performance:

Sl.No 1 2 3 4 5

1 Income Generation

2 Cost Management

3 Customer Performance

4 Profitability

5 Growth

7 - References

Chapter - 7

References

Mortimer J. ( ed ) 1986 Just In Time An Executive Briefing IFS Publication Ltd, Bedford, UK

Jansen R. & Warnecke ( ed ) 1988 Just In Time Manufacturing IFS Publications Ltd, Bedford, UK

O'Grady, J. (ed) 1988 Putting the Just-In-Time Philosophy into Practice Nichols Publishing Company, New

York

Schonberger J. (ed) 1987 World Class Manufacturing Casebook Macmillan Inc, New York

Raju.T, Prabhu. R (ed) 1947 Business Research Methods, Chennai, India.

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