International Journal of Production Economics
Posted: 27 Apr 1999
This study uses a homogeneous database of cross-sectional qualitative and quantitative data to analyze the relative performance of Just-in-time and non-JIT plants operating in the auto-parts and electronic components manufacturing industries. The multivariate tests show that JIT plants use significantly less work-in-process and finished goods inventories than do non-JIT plants. JIT plants are significantly more profitable in terms of (operating) profit margins and contribution margin ratios than non-JIT plants. JIT plants have significantly smaller variable and total costs than do non-JIT plants, but not fixed costs. The success of JIT plants along these dimensions is related to the length of experience with JIT manufacturing, and process quality and leanness but unrelated to product quality, quality control or the extent of plant unionization. Although these benefits for JIT manufacturing have been conjectured by the literature, this study documents these associations empirically at the plant level.
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Notes: This is a description of the paper and not the actual abstract.
JEL Classification: L23, M40, M41, M46, L62, L63
Suggested Citation: Suggested Citation
Callen, Jeffrey L. and Fader, Chris and Krinsky, Itzhak, Just-in-time: A Cross-sectional Plant Analysis. International Journal of Production Economics. Available at SSRN: https://ssrn.com/abstract=160368