Lean Management, An evaluation of automobile industry

Abstract

Quality improvement and costs control are vital to organizations for work performance enhancement and fulfilling customers’ requirement. Inventories that are stored in large amount of quantities will result in waste and space usage. One effective solution is using Just in Time (JIT) concept as a method to reduce costs, improve quality and meet the ever-changing customer needs. The adoption of Just in Time (JIT) concepts seems to be the most effective way to overcome these circumstances. JIT is management philosophy that emphasizes on eliminating waste and increase productivity. The main purpose of this research is to find out whether the implementation of JIT would reduce the inventories at Electronics component industry especially at the parts producing stamping of FCM. This research is done by case study. Therefore, the data collection would be using secondary data which is the documentation from FCM itself and also via observation. The data were analyzed by doing the comparison before and after the implementation of JIT using SPSS. From the analysis that had been done, the implementation of JIT had increased the inventories management at the stamping parts production. As the conclusion, the implementation of JIT in the inventory management at the automobile industry had successfully reduce the inventories level while improving the inventory level. Key Words: Lean Management, Just In Time,