In recent years, numerous approaches have been proposed to improve operations performance. Three in particular, just in time, supply chain management, and quality management, have received considerable attention. While the three are sometimes viewed and implemented as if they were independent and distinct, they can also be used as three prongs of an integrated operations strategy. This study empirically examines the extent to which just in time, supply chain management, and quality management are correlated, and how they impact business performance. Results demonstrate that at both strategic and operational levels, linkages exist between how just in time, total quality management, and supply chain management are viewed by organizations as part of their operations strategy. Results also indicate that a commitment to quality and an understanding of supply chain dynamics have the greatest effect on performance.
Numerous operations paradigms, initiatives, and practices have emerged in recent years in response to competitive pressures calling for improved product quality, increased responsiveness, and shorter lead times, but at lower cost. Three that have received particular attention in both academic and practitioner circles are just in time (JIT), total quality management (TQM), and supply chain management (SCM). The JIT philosophy advocates the elimination of waste by simplifying production processes. Reductions in setup times, controlling material flows, and emphasizing preventive maintenance are seen as ways by which excess inventories can be reduced or eliminated, and resources utilized more efficiently. The TQM movement calls for developing and implementing a corporate wide culture emphasizing customer focus, continuous improvement, employee empowerment, and data driven decision-making. Aligning product design with customer expectations, and focusing on quality at all stages of development and production processes, are seen as drivers of improved product quality and in turn improved business performance. SCM calls for the integration of buyers’ and suppliers’ decision-making processes with the goal of improving material flow throughout the supply chain. Effective management of the supply chain is viewed as the driver of reductions in lead times and material costs, and improvements in product quality and responsiveness.
JIT, TQM, and SCM represent alternate approaches to improving the effectiveness and efficiency of an organization's operations function. While differences in their motivations and objectives have sometimes led to them being presented as being distinct and separate, it is short sighted to view them as being unrelated. Both JIT and SCM seek improvements in quality, the former by way of improvements in production processes, the latter by integrating development and production processes throughout the supply chain. Successful JIT implementation depends on the coordination of production schedules with supplier deliveries, and on high levels of service from suppliers, both in terms of product quality and delivery reliability. This requires the development of close relations with suppliers and the integration of production plans with those of suppliers. It can be surmised that while the three approaches have certain defining characteristics, they represent elements of an integrated operations strategy. Snell and Dean [1] indeed found it hard to distinguish between JIT and TQM since the two have common elements. The concept of an integrated operations strategy incorporating elements of different but complementary manufacturing practices and strategies is not new [2], [3] and [4]. ‘Important strategic potential’ exists from the use of integrated management, the adoption of advanced manufacturing technology in conjunction with JIT and quality management methods [5]. ‘Streamlined flow of automated value added activities, uninterrupted by moving, storage, or rework’ has also been claimed to be consistent with enabling goals of improvement and cost reduction to be achieved simultaneously [1].
Three conclusions can be drawn from this study. At a strategic level, linkages exist between JIT, TQM, and SCM. While some companies may understand the inherent relationships between the three and actively exploit their synergy, those that do not may be inadvertently achieving the benefits of synergy. By explicitly and effectively integrating JIT, TQM, and SCM practices into operations strategy, the potential exists to add value and to better position oneself to respond to competitive pressures. At an operational level, JIT, TQM, and SCM practices can be deployed together to create value. The extent to which various practices correlate with each other and with performance is evidence that while the three may have distinct characteristics and goals, there are elements of each that are common and which can be successfully reinforced by each other. Lastly, in addition to having a focus on quality, understanding supply chain relationships is a key driver of performance. Whether it is by coordination and integration of activities throughout the supply chain or by recognizing the capabilities of immediate suppliers, understanding supply chain dynamics has a significant impact on performance. As the trend towards outsourcing and focusing on core competencies increases, organizations will be under greater pressure to effectively leverage supplier and customer relationships. The results demonstrate that doing so be a significant driver of a firm's success.
