Just‐in‐time implementation in the Scottish electronics industry
| DOI | https://doi.org/10.1108/02635579510097182 |
| Published date | 01 November 1995 |
| Pages | 17-22 |
| Date | 01 November 1995 |
| Author | Gill Mould,Maureen King |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Introduction
Central Scotland has been successful in replacing many
of its traditional industries with a network of over 300
electronics manufacturers and suppliers creating the area
popularly known as “Silicon Glen”. Silicon Glen appears
to be a very suitable site for the implementation of just-in-
time (JIT) production systems with both electronics
manufacturers and suppliers concentrated in the same
geographical area.This article contrasts the theory and
practice of JIT implementation in Silicon Glen and
assesses its success in six companies currently operating
JIT production systems. The aims of the study were
broadly to examine the process and extent of JIT
implementation in each of the companies.
Background
There are many differing interpretations of JIT, from the
early definition of Schonberger[1], who saw JIT as
primarily being a system of synchronizing the delivery of
parts to their desired location at the right time, to an all-
engrossing philosophy of production comprising three
essential elements: elimination of waste; total quality
management (TQM) and employee involvement[2].
Central Scotland received a large influx of foreign firms in
the 1980s, almost half of which were American owned.
This was partly due to the “open door” policy of the
Thatcher Government and partly due to multinationals
seeking to relocate to beat the tariff barriers of the Single
European Market. Induced by cash grants, relatively low
wages and an ample skilled workforce, the region became
a substantial assembly area for the European electronics
market. The manufacturing region of Central Scotland
covers an area of around 1,500 square miles but with good
motorway communications and uncongested roads it is
potentially in an ideal location for JIT manufacturing,
with manufacturers and suppliers located within less
than an hour’s travelling time of each other. Just-in-time
sourcing is a possibility, with parts being delivered just in
time for use in the manufacturing process, reducing the
need for holding inventory. The JIT club for Scotland,
established in 1991 to encourage the adoption of JIT
methods, claims that “the electronics industry in ‘Silicon
Glen’ is a prime area for JIT sourcing”.
Implementation of JIT production systems can be
problematic. Only on rare occasions is JIT implemented in
a “greenfield site”. Most companies introduce JIT into an
existing plant aiming for minimal disruption of
production. Achieving a smooth changeover requires
careful planning and prioritization of the JIT techniques
to be implemented. Various implementation programmes
have been devised; for example Bicheno[3] categorized
implementation into two stages. Stage one imple-
mentation is concerned with preparing the plant for a
flow of production, flexibility, short lead times and high
quality. The techniques associated with this stage are:
small machines; layout reorganization, set-up time
reduction; total preventive maintenance (TPM); total
quality management (TQM) and people preparation.
Stage two techniques build on those of stage one and
allow the plant to operate in a JIT manner, with short lead
times and little waste. The techniques associated with
stage two are: process data collection and data visibility;
flow scheduling; kanban; supplier and customer
integration. However, a survey of manufacturers[4] found
that only 16 per cent of companies had a formal
programme of implementation, while the vast majority of
companies implemented JIT on an ad hoc basis. Other
studies have acknowledged the lack of formal
implementation programmes but identify factors such as
senior management commitment and the use of pilot
projects[5] to be important for successful implementation
– though the importance of the former has later been
disputed[6]. If JIT techniques are divided into engineering
and people aspects[7] then JIT experts have stressed that
implementation should begin with the people
aspects[8,9]. Voss and Harrison[10] found that companies
focused on the techniques that were easy to implement
rather than core JIT techniques that would probably yield
better payoffs. Voss and Roberson[4] reported that one of
17
JUST-IN-TIME IMPLEMENTATION IN THE SCOTTISH ELECTRONICS INDUSTRY
Just-in-time implementation in
the Scottish electronics industry
Gill Mould and Maureen King
Just-in-time is proving highly successful and bringing substantial gains in quality and efficiency
Industrial Management and Data Systems, Vol. 95 No. 9, 1995, pp. 17-22
© MCB University Press Limited, 0263-5577
To continue reading
Request your trial