Just-In-Time Strategy Implementation Challenges and The Organizational Structure Dimensions
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Abstract
The implementation of the Just-in-Time (JIT) strategy will be successful only if each individual in the organization is maximally involved and committed to independent work tasks, with maximum contribution to teamwork with other employees and active participation in decision making, but also planning, organizing and activity control. This research starts from the assumption that the way of organizing production lines, team work of employees and relationships with suppliers, as factors of successful implementation of JIT strategy, determine the parameters of organizational structure of production companies in Serbia, whose output does not have the status of final product, but other companies use it as an input in production. The subject of the research is a detailed analysis of the impact of the implementation of JIT strategy on the organizational structure of the production company, in order to point out the importance of harmony in the relationship between JIT strategy - the parameters of organizational structure. The research results showed that an adequate organizational structure is a pillar of efficient and effective implementation of JIT strategy in this category of manufacturing companies, because this production model requires strong cooperation within the company, where plants and processes must be arranged to generate efficiency and increasing productivity, while minimizing the total cost of production. Internal cooperation, whose pillar is a decentralized type of organizational structure, and cooperation with suppliers are key prerequisites for manufacturing companies, without or with minimal inventories, to ensure that production size meets demand requirements quickly and efficiently.
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References
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Bond, P. L., Green, K. W., and Inman, A. 2020. ‘’Relationships among JIT practices: an interpretive modeling approach.’’ Production Planning & Control -The Management of Operations, 31(5): 400-411.
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Brayan, L. L and Joyce, C. I. 2007. ‘’Better strategy through organizational design.’’ The McKinsey Quarterly, 22-29.
Chan Kim, W. and Mauborgne, R. 2009. ’’How Strategy Shapes Structure.’’ Harvard Business Review, September 2009 Issue.
Chang, D. and Lee, S. 1996. ’’The impact of critical success factors of JIT implementation on organizational performance.’’ Production Planning & Control, 7(3): 329-338.
Claver-Cortes, E., Pertusa-Ortega, E.M., and Molina-Azorin, J. F. 2012. ‘’Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance.’’ Journal of Business Research, 65: 993-1002.
Claycomb, C., Dröge, C., and Germain, R. 1999. ’’The Effect of Just‐in‐Time with Customers on Organizational Design and Performance.’’ The International Journal of Logistics Management, 10(1): 37-58.
Claycomb, C., Germain, R., and Dröge, C. 1999. ’’Total system JIT outcomes: inventory, organization and financial effects.’’ International Journal of Physical Distribution & Logistics Management, 29(10): 612-630.
Davy, J.A., White, R., Merritt, N., and Gritzmacher, K. 1992. ’’A derivation of the underlying constructs of just-in-time management systems’’. Academy of Management Journal, 35 (3): 653–670.
Eric Nielsen, J., Babic, V., Stojanovic-Aleksic, V., and Nikolic, J. 2019. ''Driving forces of employees' entrepreneurial intentions – leadershup style and organizational structure.'' Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 24 (3): 59-69.
Fiedler K, Galletly J.E., and Bicheno J. 1993. ’’Expert advice for JIT implementation.’’ International Journal of Operations and Production Management, 13(6):23–30.
Fullerton, R., and McWatters, C. 2001. ‘’The production performance benefits from JIT implementation.’’ Journal of Operations Management, 19:81–96.
Galbraith, J. R. 2002. ’’Designing Organizations: An Executive Guide to Strategy, Structure, and Process.’’ Jossey-Bass, San Francisco.
Germain, R., Droge, C., and Daugherty, P. 1994. ’’The Effect of Just-in-Time Selling on Organizational Structure: An Empirical Investigation.’’ Journal of Marketing Research, 31(4).
Green, K.W. and Inman, R.A. 2006. ’’Does implementation of a JIT‐with‐customers strategy change an organization's structure.’’ Industrial Management & Data Systems, 106(8): 1077-1094.
Green, K.W., Inman, R.A., and Birou, L.M. 2011. ’’Impact of JIT‐selling strategy on organizational structure.’’ Industrial Management & Data Systems, 111(1): 63-83.
Hall, D. and Saias, M. A. 1980. ‘’Strategy Follows Structure.’’ Strategic Management Journal, 1:149-163.
Hax, A. and Majluf, N. 1983. ‘’Organization Design: A Case Study on Matching Strategy and Structure.’’ Journal of Business Strategy, 4 (2):72-86.
Hopp, W. J., & Spearman, M. L. 2004. To pull or not to pull: what is the question?. Manufacturing & service operations management, 6(2), 133-148. DOI: 10.1287/msom.1030.0028
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Koufteros, X. A. and Vonderembse, M. A. 1998. ’’The impact of organizational structure on the level of JIT attainment: Towards theory development.’’ International Journal of Production Research, 36 (10): 2863-2878.
Leech, N., Barrett, K., and Morgan, G. 2005. ’’SPSS for Intermediate Statistics.’’ Lawrence Erlbaum Associates Inc., New Jersey.
Liu, Z. and Nishi, T. 2020. ''Analyzing just-in-time purchasing strategy in supply chains using an evolutionary game approach.’’ Journal of Advanced Mechanical Design, Systems, and Manufacturing, 14:5, 1-18.
Mazany, P. 1995. ''Lessons from the Progressive Implementation of Just-in-Time in a Small Knitwear Manufacturing.'' International Journal of Operations and Production Management, 15.
Miles, R. E. and Snow, C. C. 2003. ‘’Organizational Strategy, Structure and Process.’’ Stanford University Press, Stanford, CA.
Miller, D. 1986. ‘’Configurations of Strategy and Structure: Towards a Synthesis.’’ Strategic Management Journal, 7(3): 233-249.
Phogat, S. and Gupta, A. 2017. ’’Theoretical analysis of JIT elements for implementation in maintenance sector.’’ Uncertain Supply Chain Management, 5: 187–200.
Shingo, S. and Dillon, A. P. 1989. ’’A study of the Toyota production system: From an Industrial Engineering Viewpoint.’’ CRC Press.
Smith, A. 2019. ’’JIT Inventory Management Strategy - Handbook of Research on Transdisciplinary Knowledge Generation.’’ IGI Global Publishing.
Soltani, M. D., Altaha, H. R. and Taheri, H. 2013. ’’Studying the Relationship between Organizational Structure and Selecting Decision Making Strategy (Case Study: Merged Public Organizations in Kerman).’’ International Journal of Economy, Management and Social Sciences, 4(56): 824-830.
Taghipour, A., Hoang, P., and Cao, X. 2020. ’’Just in Time/Lean Purchasing Approach: An Investigation for Research and Applications. Journal of Advanced Management Science, 8(2): 43-48.
Tran, Q. and Tian, Y. 2013. ’’Organizational Structure: Influencing Factors and Impact on a Firm.’’ American Journal of Industrial and Business Management, 3: 229-236.
Turnbull, P., Oliver, N., and Wilkinson, B. 1992. ’’Buyer-Supplier Relations in the UK Automotive Industry: Strategic Implications of the Japanese Manufacturing Model.’’ Strategic Management Journal, 13 (2): 159–68.
Villadsen, A. R. 2013. ’’Similarity or Difference? The Relation Between Structure and Strategy Isomorphism in Public Organizations.’’ British Journal of Management, 24: 562-572.
Voss, C.A. and Robinson, S.J. 1987. ’’Application of Just-in-time manufacturing techniques in the UK.’’ International Journal of Operations and Production management, 7(4): 46-52.
White, R., Ojha, D., and Ching-Chung. 2010. ’’A competitive progression perspective of JIT systems: evidence from early US implementations.’’ International Journal of Production Research, 48(20): 6103-6124.
White, R.E. and Ruch, W.A. 1990. ’’The composition and scope of JIT.’’ Operations Management Review, 7(3/4): 9–18.
Ahmad, A., Mehra, S., and Pletcher, M. 2002. ’’The Declining Need For Traditional Performance Measures In JIT Practices.’’ Journal of Business Administration, 1:2.
Bae, J. and Yong‐Woo, K. 2008. ’’Sustainable Value on Construction Projects and Lean Construction.’’ Journal of Green Building, 3: 156-167.
Barkhordari, R. and Denavi, H. 2017. ’’Just-In-Time (JIT) Manufacturing and its Effect on the Competence of Supply Chain and Organizational Performance in the Tile and Ceramic Industry in Yazd Province.’’ Journal of Knowledge Management, 2(1): 8-19.
Behrouzi, F. and Wong, K. 2011. ‘’Lean performance evaluation of manufacturing systems: A dynamic and innovative approach.’’ Procedia CS, 3: 388-395.
Bond, P. L., Green, K. W., and Inman, A. 2020. ‘’Relationships among JIT practices: an interpretive modeling approach.’’ Production Planning & Control -The Management of Operations, 31(5): 400-411.
Bozkurt, O., Kalkan, A., and Arman, M. 2014. ’’The Relationship between Structural Characteristics and Followed Business Strategy: An Application in Denizli.’’ Procedia-Social and Behavioral Sciences, 150: 222-229.
Brayan, L. L and Joyce, C. I. 2007. ‘’Better strategy through organizational design.’’ The McKinsey Quarterly, 22-29.
Chan Kim, W. and Mauborgne, R. 2009. ’’How Strategy Shapes Structure.’’ Harvard Business Review, September 2009 Issue.
Chang, D. and Lee, S. 1996. ’’The impact of critical success factors of JIT implementation on organizational performance.’’ Production Planning & Control, 7(3): 329-338.
Claver-Cortes, E., Pertusa-Ortega, E.M., and Molina-Azorin, J. F. 2012. ‘’Characteristics of organizational structure relating to hybrid competitive strategy: Implications for performance.’’ Journal of Business Research, 65: 993-1002.
Claycomb, C., Dröge, C., and Germain, R. 1999. ’’The Effect of Just‐in‐Time with Customers on Organizational Design and Performance.’’ The International Journal of Logistics Management, 10(1): 37-58.
Claycomb, C., Germain, R., and Dröge, C. 1999. ’’Total system JIT outcomes: inventory, organization and financial effects.’’ International Journal of Physical Distribution & Logistics Management, 29(10): 612-630.
Davy, J.A., White, R., Merritt, N., and Gritzmacher, K. 1992. ’’A derivation of the underlying constructs of just-in-time management systems’’. Academy of Management Journal, 35 (3): 653–670.
Eric Nielsen, J., Babic, V., Stojanovic-Aleksic, V., and Nikolic, J. 2019. ''Driving forces of employees' entrepreneurial intentions – leadershup style and organizational structure.'' Management: Journal of Sustainable Business and Management Solutions in Emerging Economies, 24 (3): 59-69.
Fiedler K, Galletly J.E., and Bicheno J. 1993. ’’Expert advice for JIT implementation.’’ International Journal of Operations and Production Management, 13(6):23–30.
Fullerton, R., and McWatters, C. 2001. ‘’The production performance benefits from JIT implementation.’’ Journal of Operations Management, 19:81–96.
Galbraith, J. R. 2002. ’’Designing Organizations: An Executive Guide to Strategy, Structure, and Process.’’ Jossey-Bass, San Francisco.
Germain, R., Droge, C., and Daugherty, P. 1994. ’’The Effect of Just-in-Time Selling on Organizational Structure: An Empirical Investigation.’’ Journal of Marketing Research, 31(4).
Green, K.W. and Inman, R.A. 2006. ’’Does implementation of a JIT‐with‐customers strategy change an organization's structure.’’ Industrial Management & Data Systems, 106(8): 1077-1094.
Green, K.W., Inman, R.A., and Birou, L.M. 2011. ’’Impact of JIT‐selling strategy on organizational structure.’’ Industrial Management & Data Systems, 111(1): 63-83.
Hall, D. and Saias, M. A. 1980. ‘’Strategy Follows Structure.’’ Strategic Management Journal, 1:149-163.
Hax, A. and Majluf, N. 1983. ‘’Organization Design: A Case Study on Matching Strategy and Structure.’’ Journal of Business Strategy, 4 (2):72-86.
Hopp, W. J., & Spearman, M. L. 2004. To pull or not to pull: what is the question?. Manufacturing & service operations management, 6(2), 133-148. DOI: 10.1287/msom.1030.0028
Kartika, C. and Wijaya, O. 2015. ‘’Model Relationship between Organizational Structure, Strategy Evaluation, Jit Selling Strategies, Competence Market, Orientation Was Strategies on the Balanced Score Card, Process Organization, Effects Associated Organisations In Improving Performance Measure Manufacturing Company East Java.’’ International Journal of Business and Management Invention, 4(1): 14-21.
Kavale, S. 2012. ’’The connection between strategy and structure.’’ International Journal of Business and Commerce, 1(6): 60-70.
Koufteros, X. A. and Vonderembse, M. A. 1998. ’’The impact of organizational structure on the level of JIT attainment: Towards theory development.’’ International Journal of Production Research, 36 (10): 2863-2878.
Leech, N., Barrett, K., and Morgan, G. 2005. ’’SPSS for Intermediate Statistics.’’ Lawrence Erlbaum Associates Inc., New Jersey.
Liu, Z. and Nishi, T. 2020. ''Analyzing just-in-time purchasing strategy in supply chains using an evolutionary game approach.’’ Journal of Advanced Mechanical Design, Systems, and Manufacturing, 14:5, 1-18.
Mazany, P. 1995. ''Lessons from the Progressive Implementation of Just-in-Time in a Small Knitwear Manufacturing.'' International Journal of Operations and Production Management, 15.
Miles, R. E. and Snow, C. C. 2003. ‘’Organizational Strategy, Structure and Process.’’ Stanford University Press, Stanford, CA.
Miller, D. 1986. ‘’Configurations of Strategy and Structure: Towards a Synthesis.’’ Strategic Management Journal, 7(3): 233-249.
Phogat, S. and Gupta, A. 2017. ’’Theoretical analysis of JIT elements for implementation in maintenance sector.’’ Uncertain Supply Chain Management, 5: 187–200.
Shingo, S. and Dillon, A. P. 1989. ’’A study of the Toyota production system: From an Industrial Engineering Viewpoint.’’ CRC Press.
Smith, A. 2019. ’’JIT Inventory Management Strategy - Handbook of Research on Transdisciplinary Knowledge Generation.’’ IGI Global Publishing.
Soltani, M. D., Altaha, H. R. and Taheri, H. 2013. ’’Studying the Relationship between Organizational Structure and Selecting Decision Making Strategy (Case Study: Merged Public Organizations in Kerman).’’ International Journal of Economy, Management and Social Sciences, 4(56): 824-830.
Taghipour, A., Hoang, P., and Cao, X. 2020. ’’Just in Time/Lean Purchasing Approach: An Investigation for Research and Applications. Journal of Advanced Management Science, 8(2): 43-48.
Tran, Q. and Tian, Y. 2013. ’’Organizational Structure: Influencing Factors and Impact on a Firm.’’ American Journal of Industrial and Business Management, 3: 229-236.
Turnbull, P., Oliver, N., and Wilkinson, B. 1992. ’’Buyer-Supplier Relations in the UK Automotive Industry: Strategic Implications of the Japanese Manufacturing Model.’’ Strategic Management Journal, 13 (2): 159–68.
Villadsen, A. R. 2013. ’’Similarity or Difference? The Relation Between Structure and Strategy Isomorphism in Public Organizations.’’ British Journal of Management, 24: 562-572.
Voss, C.A. and Robinson, S.J. 1987. ’’Application of Just-in-time manufacturing techniques in the UK.’’ International Journal of Operations and Production management, 7(4): 46-52.
White, R., Ojha, D., and Ching-Chung. 2010. ’’A competitive progression perspective of JIT systems: evidence from early US implementations.’’ International Journal of Production Research, 48(20): 6103-6124.
White, R.E. and Ruch, W.A. 1990. ’’The composition and scope of JIT.’’ Operations Management Review, 7(3/4): 9–18.