Article Review

Article located: Loudin, A. (2019, October 15). Just-in-time manufacturing success
requires the right KPIs and suppliers. Supply Chain Drive.
https://www.supplychaindive.com/news/just-in-time-manufacturing-kpis-suppliers/565060/
The article discusses the importance of organizations adopting just-in-time (JIT)
practices as a means of gaining competitive advantage over their competitors. Pioneered by
Toyota in the 1970s, JIT philosophy seeks to eliminate waste of all kinds (time, inventory,
costs, and stock) so that the organization is able to deliver goods and services faster than
others (Martin, Kim & Kwon, 2016). Toyota’s successful use of the philosophy has led to
many other organizations also using it. Thus, it is no longer enough to employ JIT.
According to the article, organizations need to use other strategies to support JIT. One
of the strategies that the article proposes is choosing the right key performance indicators
(KPIs) to measure within the JIT strategy. The two KPIs that the article suggests
organizations should be keen to measure are timing and response of the organization when it
fails to meet expectations of customers. With regards to timing, the article suggests that
organizations should measure their lead time (time between taking order and handing to the
customer the finished product or service). Timing can be improved through knowing the
desires and needs of customers. As for response of the organization when it fails to meet
expectations of customers, the article suggests that the organization always communicates
with customers in advance when it anticipates delays.
Choosing the right KPIs can help an organization to better implement JIT. However,
it also needs to prepare for risks that may imperil the strategy’s implementation. Nyaga,
Young & Zepeda support this view that organization have to identify and mitigate risks in
their supply chains for effective organizational performance (2016). According to article, one

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way of reducing risk is through having the right partner as supplier. The organization should
also have a back-up plan that may include having one partner supply 80% of its materials and
another one 20%. The importance of having a back-up plan is also supported by Ashok,
Brison & LeTallec who argue that it is an effective risk mitigation measure (2017).
There are many benefits that organizations get through appropriate implementation of
JIT. They include reduction of inventory levels, a rise in productivity, and customer
satisfaction. These benefits are not limited to manufacturing but also healthcare
(D’Andreamatteo et al., 2015). Thus, JIT can be implemented in any industry.

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References

Ashok, A., Brison, M., & LeTallec, Y. (2017). Improving cold chain systems: Challenges and
solutions. Vaccine, 35(17), 2217–2223.
D’Andreamatteo, A., Ianni, L., Lega, F., & Sargiacomo, M. (2015). Lean in healthcare: A
comprehensive review. Health Policy, 119, 1197–1209. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0168851015000366
Martin, D. G., Kim, S. H., & Kwon, I. G. (2016). Healthcare supply chain management;
strategic areas for quality and financial improvement. Technological Forecasting &
Social Change, 113, 422–428. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0040162516301585
Nyaga, G. N., Young, G. J., & Zepeda, E. D. (2016). Supply chain risk management and
hospital inventory: Effects of system affiliation. Journal of Operations Management,
44(1), 30–47.