Just-in-time in Bangladesh

1.1. BACKGROUND OF THE STUDY .

JIT (Just in Time) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. It focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. It ensures production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line. In the modern business era production is one of the important issues and if the cost of production process can be minimized then it would generate more profit as well as efficiency. To get it JIT is one of the most effective tools.

1.2. ORIGIN OF THE REPORT .

Now-a-days education is not just confined to books and classrooms. In todays world, education is the tool to understand the real world and apply knowledge for the betterment of the society as well as business. This report is a partial requirement for the fulfillment of MBA course named Strategic Management Accounting in the department of Accounting & Information Systems of Jagannath University.

1.3. OBJECTIVE OF THE STUDY

The major purpose of the study is to examine the application of JIT (Just in Time) in Bangladesh as well as the obstacles and overcoming tools.

1. To present an overview of just in time.

2. To identify the application of just in time in business world. 3. To reveal the impacts of just in time as a whole. 4. To measure the degree of just in time in cost minimization.

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1.4. METHODOLOGY OF THE STUDY

Both primary and secondary form of information was used to prepare this report. Especially secondary data are highly emphasized. The details of these sources are highlighted below:

1. Primary sources: Interview of CEOs and other professionals.

2. Secondary sources: a) Books b) Articles c) Newspapers d) Websites

1.5. SCOPE OF THE STUDY

The present study has been carried out to evaluate the existence of just in time in the production oriented business organizations and the impact of it to the related parties in decision making. This study was confined to discover how just in time is practiced by large, medium and small scale production oriented industries.

1.6. LIMITATIONS OF THE STUDY

The present study is not out of the questions in terms of limitations. A number of limitations pertain in it. First, the time period of the study was certainly a very short to reach a pure conclusion about any study. Second, the selected professionals and CEOs were too busy to give us schedule and thats why it was not ease to interview them all privately. We also tried to communicate personally and unofficially to get the real scenario of just in time. Next, though hardest effort was undertaken to make the respondents give unbiased and thoughtful responses, the survey might include some responses tainted by central tendency (avoiding of extreme choices) and acquiescence bias (always agreeing with statements as presented). Finally, Just in Time is not practiced in Bangladesh. There are some departments in production oriented organization try to practice just in time method.

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1.7. OVERVIEW OF THE REPORT

This paper was organized in five chapters. The first chapter contained introduction including the background, origin, objectives. Second chapter included an in-depth literature review of Just-intime (JIT). In the chapter three the essential factors in implementing JIT was described. Later in chapter four included JIT in Bangladesh along with problems and solution implementing JIT were depicted. Finally in chapter five followed by chapter four comprised with findings, recommendation and clear-cut conclusions.

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2.1 Overview of JIT

The JIT approach was developed at the Toyota Motor Company of Japan by Taiichi Ohno (who eventually becomes vice president of manufacturing) and several of his colleagues. The development of JIT in Japan was probably influenced by Japan being a crowded country with few natural resources. Not surprisingly, the Japanese are very sensitive to waste and inefficiency. They regard scrap and rework as waste, and excess inventory as a evil because it takes up space and ties up resources. The Nuts and Bolts of Japans Factories by Urban Lehner provides a number of important insights on the Just-in-time approach to manufacturing, and some reasons for the successes Japanese manufacturers have achieved. Toyota learned a great deal form studying Fords operations and based its JIT approach on what it saw. However, Toyota was able to accomplish something that Ford could not a system that could handle variety. A widely held view of JIT is that it is simply a system for scheduling production that results in low levels of work-in-process and inventory. But in its truest sense, JIT represents a Philosophy that encompasses every aspect of the process, form design to after the sale of a product. The philosophy is to pursue a system that functions well with minimal levels of inventories, minimal waste, minimal space, and minimal transactions. In a byte code-compiled system, source code is translated to an intermediate representation known as byte code. Byte code is not the machine code for any particular computer, and may be portable among computer architectures. The byte code may then be interpreted by, or run on, a virtual machine. The JIT compiler reads the byte codes in many sections (or in full, rarely) and compiles them dynamically into machine language so the program can run faster. Java performs runtime checks on various sections of the code and this is the reason the entire code is not compiled at once. This can be done per-file, per-function or even on any arbitrary code fragment; the code can be compiled when it is about to be executed (hence the name "just-in-time"), and then cached and reused later without needing to be recompiled.

Just-in-time in Bangladesh

In contrast, a traditional interpreted virtual machine will simply interpret the byte code, generally with much lower performance. Some interpreters even interpret source code, without the step of first compiling to byte code, with even worse performance. Statically compiled code or native code is compiled prior to deployment. A dynamic compilation environment is one in which the compiler can be used during execution. For instance, most Common Lisp systems have a compile function which can compile new functions created during the run. This provides many of the advantages of JIT, but the programmer, rather than the runtime, is in control of what parts of the code are compiled. This can also compile dynamically generated code, which can, in many scenarios, provide substantial performance advantages over statically compiled code, as well as over most JIT systems. A common goal of using JIT techniques is to reach or surpass the performance of static compilation, while maintaining the advantages of byte code interpretation: Much of the "heavy lifting" of parsing the original source code and performing basic optimization is often handled at compile time, prior to deployment: compilation from byte code to machine code is much faster than compiling from source. The deployed byte code is portable, unlike native code. Since the runtime has control over the compilation, like interpreted byte code it can run in a secure sandbox. Compilers from byte code to machine code are easier to write, because the portable byte code compiler has already done much of the work. JIT code generally offers far better performance than interpreters. In addition, it can in some cases offer better performance than static compilation, as many optimizations are only feasible at runtime:
1. The compilation can be optimized to the targeted CPU and the operating system model where the application runs. For example JIT can choose SSE2 CPU instructions when it detects that the CPU supports them. To obtain this level of optimization specificity with a static compiler, one must either compile a binary for each intended platform/architecture, or else include multiple versions of portions of the code within a single binary. 2. The system is able to collect statistics about how the program is actually running in the environment it is in, and it can rearrange and recompile for 5

Just-in-time in Bangladesh optimum performance. However, some static compilers can also take profile information as input. 3. The system can do global code optimizations (e.g. inclining of library functions) without losing the advantages of dynamic linking and without the overheads inherent to static compilers and linkers. Specifically, when doing global inline substitutions, a static compilation process may need run-time checks and ensure that a virtual call would occur if the actual class of the object overrides the inlined method, and boundary condition checks on array accesses may need to be processed within loops. With just-in-time compilation in many cases this processing can be moved out of loops, often giving large increases of speed. 4. Although this is possible with statically compiled garbage collected languages, a byte code system can more easily rearrange executed code for better cache utilization.

2,2 History of Just in time (JIT)

The earliest published JIT compiler is generally attributed to work on LISP by McCarthy in 1960. In his seminal paper Recursive functions of symbolic expressions and their computation by machine, Part I, he mentions functions that are translated during runtime, thereby sparing the need to save the compiler output to punch cards. An influential technique for deriving compiled code from interpretation was pioneered by Mitchell in 1970, which he implemented for the experimental language LC. Smalltalk pioneered new aspects of JIT compilations. For example, translation to machine code was done on demand, and the result was cached for later use. When memory became scarce, the system would delete some of this code and regenerate it when it was needed again. Sun's Self language improved these techniques extensively and was at one point the fastest Smalltalk system in the world; achieving up to half the speed of optimized C but with a fully object-oriented language.

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Self was abandoned by Sun, but the research went into the Java language, and currently it is used by most implementations of the Java Virtual Machine, as Hot Spot builds on, and extensively uses, this research base. The HP project Dynamo was an experimental JIT compiler where the 'byte code' format and the machine code format were the same; the system turned HPA-8000 machine code into HPA-8000 machine code. Counter intuitively, this resulted in speed ups, in some cases of 30% since doing this permitted optimizations at the machine code level, for example, inclining code for better cache usage and optimizations of calls to dynamic libraries and many other run-time optimizations which conventional compilers are not able to attempt.

2.3Definition of Just in time (JIT)

Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT, which saves warehouse space and costs, but JIT relies on other elements in the inventory chain: for instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can "end up with the opposite of the desired result. In recent years manufacturers have continued to try to hone forecasting methods such as applying a trailing 13-week average as a better predictor for JIT planning; however, some research demonstrates that basing JIT on the presumption of stability is inherently flawed.
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2.4 Philosophy of Just in Time (JIT)

The philosophy of JIT is simple: inventory is waste. JIT inventory systems expose hidden cost of keeping inventory, and are therefore not a simple solution for a company to adopt. The company must follow an array of new methods to manage the consequences of the change. The ideas in this way of working come from many different disciplines including statistics, industrial engineering, production management, and behavioral science. The JIT inventory philosophy defines how inventory is viewed and how it relates to management. Inventory is seen as incurring costs, or waste, instead of adding and storing value, contrary to traditional accounting. This does not mean to say JIT is implemented without awareness that removing inventory exposes pre-existing manufacturing issues. This way of working encourages businesses to eliminate inventory that does not compensate for manufacturing process issues, and to constantly improve those processes to require less inventory. Secondly, allowing any stock habituates management to stock keeping. Management may be tempted to keep stock to hide production problems. These problems include backups at work centers, machine reliability, process variability, lack of flexibility of employees and equipment, and inadequate capacity. In short, the Just-in-Time inventory system focus is having the right material, at the right time, at the right place, and in the exact amount-Ryan Grabosky, without the safety net of inventory. The JIT system has broad implications for implementers. Transaction cost approach JIT reduces inventory in a firm. However, a firm may simply be outsourcing their input inventory to suppliers, even if those suppliers don't use Just-in-Time (Naj 1993). Newman (1994) investigated this effect and found that suppliers in Japan charged JIT customers, on average, a 5% price premium. Environmental concerns During the birth of JIT, multiple daily deliveries were often made by bicycle. Increased scale has required a move to vans and lorries (trucks). Cusumano (1994) highlighted the potential and actual

Just-in-time in Bangladesh

problems this causes with regard to gridlock and burning of fossil fuels. This violates three JIT waste guidelines:
1. Timewasted in traffic jams 2. Inventoryspecifically pipeline (in transport) inventory 3. Scrapfuel burned while not physically moving

Price volatility JIT implicitly assumes a level of input price stability that obviates the need to buy parts in advance of price rises. Where input prices are expected to rise, storing inventory may be desirable. Quality volatility JIT implicitly assumes that input parts quality remains constant over time. If not, firms may hoard high-quality inputs. As with price volatility, a solution is to work with selected suppliers to help them improve their processes to reduce variation and costs. Longer term price agreements can then be negotiated and agreed-on quality standards made the responsibility of the supplier. Fixing up of standards for volatility of quality according to the quality circle Demand stability Karmarker (1989) highlights the importance of relatively stable demand, which helps ensure efficient capital utilization rates. Karmarker argues that without significantly stable demand, JIT becomes untenable in high capital cost production. Supply stability In the U.S., the 1992 railway strikes caused General Motors to idle a 75,000-worker plant because they had no supply.

2.5 Just in time Startup delay and optimizations

JIT typically causes a slight delay in initial execution of an application, due to the time taken to load and compile the byte code. Sometimes this delay is called "startup time delay". In general, the more optimization JIT performs, the better the code it will generate, but the initial delay will also
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increase. A JIT compiler therefore has to make a trade-off between the compilation time and the quality of the code it hopes to generate. However, it seems that much of the startup time is sometimes due to IO-bound operations rather than JIT compilation (for example, the class data file for the Java Virtual Machine is 40 MB and the JVM must seek a lot of data in this contextually huge file). One possible optimization, used by Sun's Hot Spot Java Virtual Machine, is to combine interpretation and JIT compilation. The application code is initially interpreted, but the JVM monitors which sequences of byte code are frequently executed and translates them to machine code for direct execution on the hardware. For byte code which is executed only a few times, this saves the compilation time and reduces the initial latency; for frequently executed byte code, JIT compilation is used to run at high speed, after an initial phase of slow interpretation. Additionally, since a program spends most time executing a minority of its code, the reduced compilation time is significant. Finally, during the initial code interpretation, execution statistics can be collected before compilation, which helps to perform better optimization. The correct tradeoff can vary due to circumstances. For example, Sun's Java Virtual Machine has two major modesclient and server. In client mode, minimal compilation and optimization is performed, to reduce startup time. In server mode, extensive compilation and optimization is performed, to maximize performance once the application is running by sacrificing startup time. Other Java just-in-time compilers have used a runtime measurement of the number of times a method has executed combined with the byte code size of a method as a heuristic to decide when to compile. Still another uses the number of times executed combined with the detection of loops. In general, it is much harder to accurately predict which methods to optimize in short-running applications than in long-running ones. Native Image Generator (Ngen) by Microsoft is another approach at reducing the initial delay. Ngen pre-compiles (or "pre-jits") byte code in a Common Intermediate Language image into machine native code. As a result, no runtime compilation is needed. NET framework 2.0 shipped with Visual Studio 2005 runs Ngen on all of the Microsoft library DLLs right after the installation. Pre-jetting provides a way to improve the startup time. However, the quality of code it generates might not be as good as the one that is jetted, for the same reasons why code compiled statically,
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without profile-guided optimization, cannot be as good as JIT compiled code in the extreme case: the lack of profiling data to drive, for instance, inline caching. There also exist Java implementations that combine an AOT (ahead-of-time) compiler with either a JIT compiler (Excelsior JET) or interpreter (GNU Compiler for Java).

2.6 Advantages of Just in time production system (JIT)

There are of some inherent benefit of Just in time which makes it exist in this endless competitive free market economy. The unique advantages of Just in time enumerated below:
1. Reduced setup time: Cutting setup time allows the company to reduce or

eliminate inventory for "changeover" time. The tool used here is SMED (singleminute exchange of dies).
2. The flow of goods from warehouse to shelves improves: Small or

individual piece lot sizes reduce lot delay inventories, which simplifies inventory flow and its management.
3. Employees with multiple skills are used more efficiently: Having

employees trained to work on different parts of the process allows companies to move workers where they are needed.
4. Production scheduling and work hour consistency synchronized with

demand: If there is no demand for a product at the time, it is not made. This saves the company money, either by not having to pay workers overtime or by having them focus on other work or participate in training.
5. Increased emphasis on supplier relationships: A company without

inventory does not want a supply system problem that creates a part shortage. This makes supplier relationships extremely important.
6. Supplies come in at regular intervals throughout the production day:

Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time. When parts move directly from the truck to the point of assembly, the need for storage facilities is reduced.
7. Minimizes storage space needed: It is the most pivotal facilities of Just in

time that it does not take much storage space. Since supply is synchronized with production demand and with the customer specification so it does not 11

Just-in-time in Bangladesh keep typically much inventory of raw materials as well as any parts needed to production which ultimately leads to minimize storage space.
8. Smaller chance of inventory breaking: Just in time is an approach of lean

production system which usually does not much concern about inventory breaking because of the responsibility of inventory management is on supplier. Though due to some uncertain situations there is a smaller chance of inventory breaking but it can not hamper production systems most of the time.

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2.7 Disadvantages of Just in time production system (JIT)

1. Just-in-time operation leaves suppliers and downstream consumers open to supply shocks and large supply or demand changes. For internal reasons, Ohno saw this as a feature rather than a bug. He used an analogy of lowering the water level in a river to expose the rocks to explain how removing inventory showed where production flow was interrupted. Once barriers were exposed, they could be removed. Since one of the main barriers was rework, lowering inventory forced each shop to improve its own quality or cause a holdup downstream. A key tool to manage this weakness is production leveling to remove these variations. Just-in-time is a means to improving performance of the system, not an end. Very low stock levels means shipments of the same part can come in several times per day. This means Toyota is especially susceptible to flow interruption. For that reason, Toyota uses two suppliers for most assemblies. As noted in Liker (2003), there was an exception to this rule that put the entire company at risk because of the 1997 Aisin fire. However, since Toyota also makes a point of maintaining high quality relations with its entire supplier network, several other suppliers immediately took up production of the Aisin-built parts by using existing capability and documentation. Thus, a strong, long-term relationship with a few suppliers is better than shortterm, price-based relationships with many competing suppliers. Toyota uses this long-term relationship to send Toyota staff to help suppliers improve their processes. These interventions have been going on for twenty years and have created a more reliable supply chain, improved margins for Toyota and suppliers, and lowered prices for customers. Toyota encourages their suppliers to use JIT with their own suppliers.

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2.8 Essential elements of Just in time (JIT) production system

An overview of JIT production can be gained by understanding the following outline of key elements of JIT strategy. 1. Policies: to provide direction, and to indicate to the work for that management is concerned and involved; cover a wide range of subjects: customer service, elimination of waste, continual improvements, lead time reduction. 2. The people strategy: Positive attitude towards workforce; treating people as companys valuable asset; Employment as a long term decision; employee involvement, flexibility, smallgroup improvement activities (SGIA); company unions. 3. The Product Strategy: The design 'quality; integration of product design with manufacturing and-vendor capabilities; role of CAD/CAM configuration control and standardization, grouping products; by families for production through group technology. 4. The plant and equipment strategy: Concepts of focused factories, group layouts, quick conveyance means such as belt conveyor, chute, fork lift; productive maintenance. 5. The process Strategy: Shojinka (flexibility of process in meeting demand)'through GT layout, multifunction work force and job rotation; autonomation (autonomous control of defects), statistical control of defects, set up time reduction, small lot production; achieving balanced production add uniform plant loads through standard operations and mixed model assembly and fabrication. 6. The Planning Strategy: The three month horizon, production plan leveling, Final assembly scheduling (daily buckets) and sequencing. 7. The production scheduling strategy: The Kanban system, the role of kanban in achieving improvement activities; produce to exact demand; no contingencies) whirling round tour system. 8. The purchasing strategy: The long-term supplier relations, the subcontractor networks; the transport innovations.

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3.1 Factors to be Considered Implementing JIT

Implementation of JIT largely depends on some identical and highly influential factors and the benefits of it can be achieved only when such important and highly crucial factors are satisfied. These are factors related with; the production system, total quality concept, relationships with the suppliers and the clients, inventory system, employee involvement in decision making and employee training, top management commitment. These are the major factors and along with these some other factors also influence the JIT. With the harmony of all of these factors can bring an effective application of JIT as a whole. The factors are depicted as follows3.1.1 Factors Related with the Production System Just in time is largely influenced by the production system. A production system signifies manufacturing subsystem that includes all functions required to design, produce, distribute, and service a manufactured product. There are basically two systems of production. These are; push system; where production is based on the forecasts of demand with stock taking; pull system; where production is based on demand without stock taking. The following shows the operation of pull production system under JIT conditions given below-

Figure 1: Pull Production System Utilization of a pull system with JIT ensures that there is no excess production, which not only reduces inventory but also increases labour idle time. Labour idle time can be used in favour of the
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company if labour is trained to gain multi functional skills and knowledge, especially to be able to switch from one machine to another and undertake preventive maintenance and set up of machinery. This, in turn, results in reduction of machinery breakdown and set up times, reducing buffer stocks and increasing production productivity. Factory layout is another important factor that affects the production productivity significantly. Factory layout settings that can improve the efficiency and effectiveness of production so that the capacity and quality of planned production levels can be achieved by the most economical cost. It should be arranged mainly to prevent congestion and undesirable transportation waste. The ideal layout is often U shaped flow line dedicated to a particular product family. U shaped layout also provides the workers access to a number of machines, and eases communication between the workers in the same group. A successful combination of interrelated sub-factors of production systems can ensure an effective application of JIT. A diagram of JIT cellular factory layout given as follow-

Figure 2: JIT Cellular Factory Layout

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Cellular manufacturing is a concept that increases the mix of products with the minimum waste possible. A cell consists of equipment and workstations that are arranged in an order that maintains a smooth flow of materials and components through the process. It also has assigned operators who are qualified and trained to work at the cell. 3.1.2 Factors related with the Total Quality Concept Production of the right goods in the right amounts and at the right time can only be achieved if required quality is guaranteed for each resource utilizing man, machine, and material during production. Implementation of a quality assurance system helps the company to achieve quality according to a set of standards which requires systematic actions for continuous improvement, and which provides adequate confidence that the product or service will satisfy given quality requirements. Total quality can be achieved by; identifying the reasons behind any quality problems and finding long-term solutions to avoid the occurrence of the problem, and making quality the responsibility of every worker and not the responsibility of only quality control department. As a result, total quality approach directs the production system towards zero defects and in turn towards zero inventories. In order to ensure optimum quality the following measures can be taken(a) Preventing Activities: It includes all the preventive measures to have optimum product

quality without any flaw. It may include-design engineering, process engineering, evaluation of suppliers, preventive equipment and maintenance, use of new material etc.
(b) Appraisal Activities: To have sound output appraisal activities can be done during

production. It includes- inspection, online product manufacturing, process inspection etc.

(c) Internal Failure Minimization: Here internal failure is minimized effectively taking some

activities to have quality output. It may include spoilage rework, breakdown maintenance etc.
(d) External Failure Maintenance: Here the external failure is managed so that the customer

satisfaction can be retained and any future amendment can be done. Quality concept includes not only the activities involving related to developing optimum product quality but also some other activities relating everyone in a company - managers and workers
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- in a totally systemic and integrated effort toward improving performance at every level. It is to lead to increased customer satisfaction through satisfying such corporate cross-functional goals as quality, cost, scheduling, manpower development, and new product development. Once it was said by a prominent researcher that JIT is a concept that complements the ideas of total quality management (TQM) and facilitates the objectives of ISO 9000.

3.1.3 Factors related with the Relationships with the Suppliers and the Clients Everything is vain if required raw materials cant be inputted to production process. Even where the inventory level is zero suppliers can be termed as the lifeblood. So suppliers are the key people who can make our production process ongoing ensuring raw material at right time, right place and right amount having good quality. In a JIT environment, especially suppliers are very crucial not only for the achievement of superior quality but also for the reduction of inventory. Delivery of high quality materials in small quantities on time is an essential factor for the success of JIT that may result in long term agreements of the manufacturer with a single (or a few) reliable supplier. Such a relationship, in turn, leads to better quality, lower cost production for the manufacturer and income stability for the supplier. Having good relationship with supplier JIT can be implemented otherwise it is quite tough to do so. Suppliers are one of the key phases in JIT process as a single bit of inventor is not heap up for production continuity where production totally depends on the suppliers performance. If suppliers deliver at real time then the production could be on time. It is also closely related with delivery to customer as due time production leads to deliver at due time otherwise it would make the business in jeopardize. Client relationships are also significant as they are the ultimate user of the output. So as to have the information about their views about the product it is very important to consider their valuable information. In order to get feedback about the product quality it is crucial to keep them into touch and another is in easing the manufacturers efforts in implementation of JIT by assuring as few variations as possible in their orders. It is facilitating to the management to know the actual performance and the desired performance of the client. Without having feedback in is quite tough to get the deviation and further improvement of the next operation. The continuous improvement largely depends on the feedback of the client.
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3.1.4Total Productive Maintenance Total productive maintenance is one of the important issues that focus on productivity and any other interruption of production due to machine breakdown. The reliability of the equipment on the shop floor is very important since if one machine breaks down the entire production line could go down. There are three components of a total productive maintenance program: preventive maintenance, Corrective maintenance and maintenance prevention. Preventive maintenance has to do with require planned maintenance on all equipment rather than random checkups. Workers have to carry out require equipment maintenance to detect any anomalies as they occur. By doing so sudden machines breakdowns can be prevented, which leads to improvement in the throughput of each machine. Corrective maintenance deals with decisions such as whether to fix or buy new equipment. If a machine is always down and its components are always breaking down then it is better to replace those parts with newer ones. As a result the machine will last longer and its up time will be higher. Maintenance prevention has to do with buying the right machine. If a machine is hard to maintain (e.g., hard to lubricate or bolts are hard to tighten) then workers will be reluctant to maintain the machine on a regular basis, which will result in a huge amount of lost money invested in that machine.

3.1.5 Factors related with the top Management commitment Management is the decision maker who under take the venturesome actions to reach organizational goal. In implementation JIT they play crucial role. JIT implementation cannot be successful, or even be started, if top management does not support it. Top management support will be in the form of convincing the subordinates and top management of the suppliers about the benefits of JIT, and financing the implementation. A commitment of continuous support by the by the top management can ensure JIT application smoothly. 3.1.6Factors related with the Employee Involvement A successful JIT environment should have the cooperation and involvement of everyone in the organization. People are managers when they have a hand in planning their job activities and
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measuring the results of what they have done. It is very important to have a harmony among the people working in the organization. The total employee involvement can bring the JIT successful. To get the coherence some measures can be taken which includesTeaming: This involves putting employees into teams and making their brains work as well as their hands. Employees are asked to be part of a team, to communicate problems, and to search for solutions. These teams are formed across all disciplines so that we have engineers, shop floor employees, and accountants all working on teams together. Empowerment vs. Top-down management: Empowerment involves the giving of decision power to the employees. If the employee team makes a decision, they have the power to implement the decision. Decisions flow upward as opposed to the traditional top down management. Shorter organizational charts: The communication linkage between top management and the line worker needs to be shortened with empowerment and teaming the span of control for each manager can be much greater, and the current number of middle management levels is no longer necessary. Gain sharing: The motivation behind the teaming concepts is gain sharing. Employees benefit from the involvements they generate by sharing in the gains of the organization. Job security: A fundamental principle behind proper motivation and improvements in quality is that employees need to have their primary concern eliminated, which is that they might lose their jobs. If employees are afraid to make suggestions because they may work themselves out of a job, or if they are afraid to speak up because they may offend some one and get fired, many of the improvements, which could be made, will never be made. To avoid this problem, employees are guaranteed their job for the life of the corporation. Cross training and Job rotation: Employees are rotated out of their job every two years and trained into a new job. They are not only trained on how to do the job, but they are also trained about the quality and maintenance issues that go along with the job. The principle here is that an employee with a well-rounded background about how the company operates will be valuable to the company in making improvements. 3.1.7Performance Measurement
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It is very important to know the level of performance. The successful implementation of JIT depends on performance actually high level performance in every step. For what ever we seek to improve or waste we seek to eliminate, measurement is necessary to know exactly where we are, where we have been, and where we are going. JIT organizations utilize the measurements in ways unlike many traditional measurement systems. It can be measured taking into account of some issues. A harmony of these above factors can bring the JIT fruitful. Considering different situation some factors may get higher emphasis. But these are common factors considered in order to implement JIT.

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4.1. JIT IN BANGLADESH

Rapid change of the needs of the population of Bangladesh is a major feature of the current business world. This phenomenon has forced researchers, businessmen and practitioners to develop new production management techniques to cope with the changes in market places. JIT as a production management system is one of them. This system is designed for achieving continuous quality and productivity improvement through production with zero defects and spoilages. This system has been found to increase productivity, performance and quality in general and earning quality in special. Although, the management is able to make appropriate program, decision and control with implementation of this system. It was initially emerged in the Japanese industry. In Bangladesh, the concept of JIT is very narrow and is not fully implemented in any industry due to some factors. Some garments companies, steel companies, some departmental stores like Agora are trying to implement JIT in their business process. But those companies are continuously failing as there are no pioneer companies whom can be followed. Japanese companies can follow TOYOTA co as it has developed JIT application module theoretically. In Bangladesh, there is no developed theory and even none company which can be followed to implement JIT. Another matter is that JIT implementation is very difficult for some particular sectors like agro and it is quite tough to implement JIT in those countries based on agro economy because agro products cannot be produced over night. So, being an agro based economy where more than 80% industry of Bangladesh depends on the agro products (like flour mills, oil mills, jute mills) is one of the main obstacles for implementing JIT. For this reason, the management of the Bangladeshi companies follows some other management techniques to reduce costs such as Activity Based Costing, Supply Chain Management and Quality Costing etc.

4.2 PROBLEMS IN IMPLEMENTIG JIT

There is nothing without hazard and barriers. JIT application is not out of that. Different factors create hindrance in implementation. The common problems make JIT implementation slow are high cost of implementation, informal and casual quality auditing., lack of Communication at various levels, lack of customer awareness about product quality, lack of support from R & D department ,lack of teamwork ,lack of top management participation in QC Programs ,lack of training, lack of understanding about JIT Techniques, negative attitude, traits & beliefs of
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Bangladeshi work force, poor and inadequate maintenances, shortage of multifunctional workers, traditional methods of quality control. The problems are depicted below-

4.2.1 PROBLEMS IN TOP MANAGEMENT COMMITMENT

To be successful in JIT, the commitment of time and resources required to complete the analysis will require the long-term cooperation and support of senior managements. The JIT principles says that top managements can show their commitment by devoting much time and effort to human relations, expending their time much on the work, and access to every employee at all times. The problems for applying JIT in Bangladesh by the top management are depicted as follows: 1. There is a big gap between top-management and shop floor workers. 2. The management style is a tally type. 3. Top managements are taking changes through hesitation.

4.2.2. PROBLEMS IN WORKING CULTURE OF THE ORGANIZATIONS

JIT requires an overall cultural change of an organization, but the trends of the industries discovered, are currently influenced by the culture of traditional manufacturing system. The overall cultural problems of the maximum organizations which affects the implementation of JIT in Bangladesh are as follows: 1. Keeping high work in process (WIP) to ensure capacity utilization. 2. Based on safety stock. 3. Fixing the blame rather than the problems. 4. Social and emotional issues are suppressed. 5. Mistakes are inevitable because employees are afraid to disclose. 6. Corrective mentality of defective goods. 7. Corrective mentality of equipment maintenance. 8. Front line workers are given limited responsibility; because of this the employee involvement for continuous improvement is relatively low.

4.2.3. PROBLEMS IN TRAINING PROGRAM

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The training program in JIT environment is a continual process, but most of the training is extensive at the beginning and the others are given on job training. The education and training system in Bangladesh, in general does not reflect the culture and socioeconomic aspect of the country, rather it is based on the other country curriculum. The summaries of training program in our industries are as given below: 1. Only a familiarization program. 2. The majority of the training is limited to higher-level management. 3. It is not considered as a long-run return. 4. Training is seen as an investment rather than a continual improvement program. 5. The training given is optimal training to meet immediate job need.

4.2.4. PROBLEMS IN EMPLOYEE RESISTANCE

Employees are the people who make JIT work, therefore, a total employee involvement is required to ensure the quality of their product. It seems that employees in the industries are not fully ready for this issue. The main reasons sited for the employee resistance in the companies of Bangladesh are: 1. Fear of job security. 2. Job security prevailing. 3. Segmented problem solving practices (segmented concern). 4. Working or acting to be loyal to their supervisors rather than the company. 5. The employees are loyal to professionals. 6. Narrow skill of most employees. 7. Functional workers are somewhat specialized and rigid. 8. Decision is usually initiated at the top and flow down, and it is also individual. 9. The employees, in general agree with their boss in all aspects but violently.

4.2.5 PROBLEMS IN QUALITY COMMITMENT

As perceived from the earlier chapter, a prerequisite for JIT success is commitment to quality, and commitment to qualities requires changes in policies affecting procurement, production processes, product change, problem troubleshooting, and relationships with suppliers. For maintaining
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quality, most of the companies emphasize on the following matters but those create obstacles to implement JIT in Bangladesh: 1. It costs money to make quality. 2. Quality is controlled rather than built-in. 3. Inspection is highly emphasized. 4. Quality personnel are responsible for quality problems. 5. Their quality practice is more of control oriented. 6. Most of important quality improvement tools are not commonly used. 7. The quality costs are not properly documented, and only charts, formats for reporting defects are used.

4.2.6. PROBLEMS IN COMMUNICATION SYSTEM

In a well JIT practiced environment, the level of communications is very strong with both internal and external organizations. In the recent innovation systems the use of Internet facilities for external organizations, electronic data interchange (EDI) for internal organization, and Kanban information circulation systems for production lines are used. The problems regarding communication in Bangladeshi industries are as follows: 1. In our industries these information communication technology is at most missing.

2. It has been seen that the use of Internet facilities are limited for higher officials and
management.

3. The purchasing process is also based on traditional methods.

4.2.7. PROBLEMS IN VENDORS/SUPPLIERS ASPECT .

Vendor or supplier is the main party for implementing JIT because raw materials are supplied by the suppliers. And without raw materials, production process cannot be run and on the same time JIT cannot be implemented. An organization can purchase raw materials from local suppliers and from overseas suppliers. For purchasing raw materials, Bangladeshi organizations face different problems. Such as:

1. Delayed delivery time.

2. High lead time for overseas suppliers.
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3. High custom processing time for overseas suppliers.

4. Inconsistence in quality. 5. Sometimes inferior quality raw materials are provided. 6. Unscheduled delivery time according to the pace of production process for the local
suppliers.

4.2.8. PROBLEMS IN POWER SUPPLY

Power supply is another essential element for implementing JIT. One of the main problems of Bangladesh is the electricity problem. Without electricity production cannot be continued. It is too expensive to run production by the own electricity supply. Bangladeshi companies face some problems due to insufficient power supply. Such as: 1. Huge spoilage of products 2. Machine failure 3. High inspection costs 4. Wastage of time 5. Less productivity of labor
These are the common problems are seen every where besides there are some other problems too.

4.3 SOLUTION OF THE PROBLEMS PREVAILED IMPLEMENTING JIT .

Implementation of JIT is no longer easy task as it requires the proper interaction of different factors. A simple path way of eradicating problems come forward is depicted as follows-

4.3.1 ROLE OF SENIOR MANAGEMENT

Senior management commitment only the start of the solution, Total involvement and commitment from ALL employees are required to imply successful JIT process in an organization. Strong indications that senior management is accepting their responsibility in this regard Senior managers must create an atmosphere which promotes teamwork,

Co-operation and participation from all members in healthy decision making, and effective
two way communication.
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An important responsibility of the top management is to assign the roles and

responsibilities to responsible personnel for successful JIT process application.

Setting standards like zero failure. Monitoring quality performance. The responsibility of ensuring that all employees know why the organization is heading
towards JIT, and what potential benefits will result in their area or function or process, lies with the senior managers.

4.3.2 WORK CULTURE WITHIN THE ORGANIZATION

JIT not only appreciates quality improvement concepts; but also concentrates on existing culture, habits, norms and values of employees because people commitments, involvement and promotion of open decision-making are essential for quality improvement. Some essential elements of work culture under JIT are briefly outlined as follows: 4.3.2.1 FLEXIBLE WORKFORCE: The workforce is main source of flexibility in JIT. With this flexible workforce, when one worker is not available or falls behind to perform his work, another worker can do this job. Therefore, flexible/multifunctional workers are trained to perform a wide range of jobs at very short notice. 4.3.2.2. CROSS TRAINING: Training of workers is strategic issue for success of JIT and its main objectives are to permit a rapid transfer of workers between the tasks without loss of efficiency and to enable the workers to play an active role in problem prevention. Cross training for all workers is must to develop their multiple skills so that they can do different jobs in the factory. Training also helps them to understand the philosophy, concept and techniques of JIT. Furthermore, it induces better integration, communication and teamwork among the workers. 4.3.2.3. LONG-TERM EMPLOYMENT: Massive training programs are more expensive. Consequently, high turnover rate of trained workers is unfavorable for JIT. It may adversely affect on companys competitiveness. Workers feel safe and committed to their jobs by giving them long-term employment. Accordingly, JIT demands long term employment to achieve lower turnover rate of workers.

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Figure 3: JIT work culture 4.3.2.4. JOB ENLARGEMENT AND LABOUR UNIONS: In Just-in-Time

environment, workers are also responsible for checking the quality of materials supplied by vendor. One worker may check the value added efforts of another worker. The inspection of one workers effort by another places greater job responsibility on lobour and acts to broaden workers job. This process is known as Job enlargement. Sometime, Job enlargement enhances the worker level to unrealistic level. Consequently, the lobour unions oppose the concept like multifunctional workers and zero buffer stock. So, support from the lobour union is especially imperative for successful implementation of JIT. 4.3.2.5. WORKFORCE INVOLVEMENT: JIT requires some changes in manufacturing system. These changes require employees involvement from every person in the organization. This is achieved by introducing the reward and compensation system. Reward systems are based more on group incentive scheme because an individual incentive scheme can destroy good teamwork and synchronized production. 4.3.2.6. VISIBILITY: JIT demands for good visibility so that everything and everybody at plant-floor should see clearly, and quality problem can be solved quickly as they come on surface. Visibility involves poka-yoke inspection methods or fool-proofing system to ensure no error is made by the workers. This helps in achieving high standard of quality, which is pre-request for effective implementation of JIT.
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4.3.3 SUPPLY CHAIN MANAGEMENT

Proper utilization of supply chain management is needed. To develop JIT in Bangladesh a smooth system of supply chain management is to be developed to implement JIT here. As inventory supply is a key element so supply of inventory should be make more convenient.

4.3.4 GOVERNMENT FACILITIES

It is very important to ensure positive environment for business to have a better economy. So here government should play an important role. Making legal rigidity flexible and other facilities government can create good business environment which will help to have JIT either indirectly or other means. As government provides some identical support like electricity, gas and others and these supports should be made uninterrupted and flexible.

4.3.5 POLITICAL STABILITY

Political unrest, stick and other factors should be eliminated to create an environment in our country to apply JIT effectively in Bangladesh. It is one of the vital problems commonly seen here.

4.3.6 FINANCIAL SUPPORT

It is capita, a vital element in every business. As JIT is a continuous process it requires a minimum level of capital. So the flow of capital and the sources of capital should be open up so that a business can be supported by smooth capital flow.

Finally taking necessary measures on the above mentioned factors as well as others JIT can be implemented fairly in Bangladesh. But above all it is very important to create JIT friendly environment as a whole.

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4.4. FUTURE OF JIT IN BANGLADESH

By implementing the JIT in Bangladeshi industries, an enormous saving can be generated and a new productivity ethics can be created that may be helpful to strengthen the Bangladeshi economy. In addition, JIT practices can help the Bangladeshi industries to become more competitive by enhancing their export in world market. But, it is observed that social, cultural and political matters have a significant impact on JIT practices in Bangladesh. In Bangladesh, suppliers of several raw materials (foreign and domestic) are subjected under government control through supply agencies, which translates into high uncertainty. Government control prices of key resources and taxation rates; all creates obstructions in way of implementing the JIT. In addition, Bangladeshi labour is usually uneducated, lacking in motivation and more concerned with monetary benefits and job security than carrier progress and development of their potential. Labour unions and their reluctances are also unfavorable for implementing the JIT. Therefore, specific cultural changes are required for successfully implementing the JIT. Training can play a decisive role in this direction. On this issue, some researchers stated that Japanese training models are not very successful in developing countries like Bangladesh. Therefore, some specific time bound training programs should be organized for Bangladeshi workforce after carefully studying their behavior patterns, personal traits, attitudes and social values. For successful implementation of JIT in Bangladesh, government can play a major role. Government provides some incentives for some industries but those are not sufficient. If the government reduces the custom duty, tax rate and provides some extra incentives, many local organizations can implement JIT process. At present many organizations arranges training not only for the top management but also for the workers of the organization which is the main prerequisite for implementing JIT process. This is a good sign for Bangladeshi organization. Now a day many organizations are performing their operations by their own power supply which in once scene increases the cost but on the other hand it reduces the overall cost of that organization because it can implement JIT by this. Finally JIT process needs the integration of the key elements. If the organization can integrate all the elements, it will be fruitful for the organization as well as for the economy of Bangladesh.

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5.1 FINDINGS

As Bangladesh is a developing country creeping with lots of crisis it is a little bit difficult to implement JIT overnight. Though some of the organization tried to apply JIT but failed due to some unavoidable constrains. Our findings are shortly given below1. The concept of JIT in our manufacturing industries is quite narrow. 2. The organizational structure is not advanced enough to have JIT. 3. Top management is not willing to adopt it. 4. The external environment is totally unfavorable. 5. Since the communication system is not well structured thats why management is less motivated to follow the JIT. 6. In Bangladesh, the large scale production oriented industries are comparatively fewer than the others industrially developed countries, thats why the concept of JIT has not developed in that extent yet. 7. JIT has not been theoretically developed in our local industries according to their own style need. 8. Consumers of various products and services in Bangladesh are not innovative, that means most of the consumers are not able to shape their own demand. They are accused to have the products or services designed by the manufacturer or the service providers. 9. In Bangladesh, advanced technologies are not available thats why the management of the local industries are less interested in JIT. 10. In very recent, some multinational corporations in Bangladesh are following JIT in their production system, some local organizations also follow JIT.

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5.2 RECOMMENDATIONS

It is impossible to sustain and achieve expected growth in such competitive market of open economy without minimizing the costs in various levels of production and distribution. JIT is the most important tool to minimize costs in various levels of production and distribution. 1) The industrial policy makers and the various governing body should come forward to widen the concept of JIT in the various levels of manufacturing industries. 2) Entrepreneurs and the management should work together in a preplanned way toward structured system in every stage of the organization. 3) Top management should carefully consider the JIT whether it is able to minimize overall cost or not. 4) The government and the industrial policy maker should emphasize on the communication system of Bangladesh. 5) The organization should try their best to have better control over the external environment. 6) Entrepreneurs from both of home and abroad come forward to establish large industrial organizations to have the labor cost benefits. 7) Innovative entrepreneur should make the JIT theory as their own need and betterment. 8) Customers should provided with enough information, frequent market research and customers participating decision making should be followed. 9) Advanced technologies should be used in various levels of organization. 10) The corporation that are using JIT should be encouraged and analysis carefully.

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5.3 CONCLUSION

With the advancement of modernism everything is changing and rolling with velocity and to cope with the rage business organizations need to sort out the best way to minimize cost to ensure long run success and existence. As JIT is one of the major tools to cut down cost in manufacturing industries so it is wise to adopt it. Being a developing country Bangladesh needs to focus on cost minimization so that they can move to international market with their efficiency. JIT application in production would be a great way to advancement in business. Though there are some barriers prevail naturally so the concerned authority should be aware of it and necessary measures should be taken to have a congenial environment for JIT. Mostly the industrial policy makers, top management and researchers should be more responsible to create an environment to implement JIT. Finally most importantly it is really meaningful to apply this powerful tool in the production process to have a command over economic production as well as customer delight.

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