Just-in-time performance measurement in an automotive component manufacturing environment

Abstract

Over the last decade, manufacturing environments have been challenged to radical implementation of typical philosophies such as just-in-time manufacturing (JIT) to achieve dramatic performance improvement. Literature review shows that there is no mechanism so far to identify key JIT drivers relevant to a given organization and its production process, and their impact on enterprise performance. The research carried out here therefore involved the development of a generic performance measurement model to identify and capture the influence of JIT . practices on enterprise performance.' A conceptual performance. measurement model links JIT drivers (Xi) and measurable performance .(Y) using a multidimensional tool such as the extended balanced scorecard. The conceptual" model was then applied to the production process of 'X' Manufacturing(UK) Ltd., a global automotive component manufacturer in United Kingdom. A novel eight-step implementation procedure was designed to collect data, which were analyzed by design of experiments, linear mathematical modelling, computer based dynamic simulation and analytic hierarchy process tool. The contribution to knowledge is an innovative, user friendly,robust and multidimensional performance measurement model enabling industry practitioners to optimize JIT processes 'with substantial performance enhancement.