JUST-IN-TIME MANUFACTURING AND PURCHASING PRACTICES AND BUSINESS PERFORMANCE: AN EXPLORATORY STUDY

In today’s challenging and turbulent competitive markets, companies need to constantly review their strategies in order to survive and sustain their market positions. One of the strategies frequently adopted by companies to improve manufacturing performance is Just-in-time purcahasing and manufacturing practices. Use of JIT enables them to be more efficient, effective and more responsive to customer needs as JIT is based on the philosophy of demand pull and lean manufacturing. This study investigates the relationship between the level of just-in-time (JIT) purchasing and manufacturing practices and performance. It employed a self-administered questionnaire survey to collect data from Malaysian manufacturing companies. The survey results provide empirical evidence that the level of JIT practices was positively related to perceived business performance. The findings reveal that the level of JIT practices were positively related to both perceived financial and non financial performance. The results suggest that companies which implement some aspects of JIT manufacturing and purchasing practices could achieve better financial and non-financial business performance.

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