The Effect of Applying Just-In-Time Production System on the Production Performance in the Jordanian Manufacturing Companies

Ghassan F. Al-matarneh, Sulieman H. Al-Beshtawi

Abstract


This study is mainly concerned with identifying the effect of the implementation of the Just-In-Time manufacturing cost on the production performance of the Jordanian manufacturing companies, and above all, on reducing the production cost. Furthermore, it aims at finding out the obstacles hindering the application of this system in the Jordanian manufacturing companies.

This study is divided into two parts: studying the concept, objectives and the requirements of the Just-In-Time system, the advantages achieved by this system, its effect on the production performance and clarifying shortcomings related to the application of this system. These are what the first part focuses on. The second part is concerned with studying the sample of this study, which consists of 40 companies. SPSS is used to analyze the results of this study which emphasize that the application of this Just-In-Time system requires the significance of reorganizing the operations of productivity in the Jordanian manufacturing companies. This process enhances the efficiency and improvement of the production performance. More importantly, the results show that the application of Just-In-Time system (de facto) reduces the direct costs and equally improves the quality of the product which undoubtedly enhances its competitive capacities. By way of concluding, this study recommends training the employees in the Jordanian manufacturing companies to increase their skills in order to enable them to have control over the production

Keywords


JIT system, Zero Inventory, Reduction of Cost Production

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