Nowadays, in the business world, the 1st aim in doing business is to maximize profit. The concept is to reduce cost as much as possible. The concept of ‘Jujitsu-Len-Time) system has been introduced and increasingly recognized by the world. However, it wasn’t easy to apply KIT in every industry as it needs every part of the value chain to be involved. Besides, high initial investment is required for KIT implementation which also involves the long-term commitment from a company.
Certain risks will be included and the success rate wasn’t fully guaranteed too. The ultimate goal of KIT will be trying to achieve zero inventories so the cost of warehouse can be eliminated. Therefore, this thesis is aim to expand the research area of impact of KIT system in manufacturing area. Finally, this research paper will be expected to complement academic knowledge on KIT system and its impact on manufacturing industry, which will be useful to several parties include manufacturing company who interested to implement KIT system, supplier, and any parties that involved in the value chain of he company.
Background of the research In the new era, customer demanding has been very aggressive and technology has been improving rapidly. Manufacturing industry normally refer to usage of human resource and raw material to produce goods for use or sales. However, it was commonly known as large scale of production where raw materials are being refined or for the production of goods. This had cause the company to seek the most effective strategies to adopt in order to achieve competitive advantages.
Cost will be considered as one of the most important factors in order to achieve competitive advantages as end users – who will be ‘customer’ will tend to choose more on a better quality but with a lower pricing range of finished goods. Therefore, the company has to find ways to reduce their product cost in the same time improving their product quality. This can be realize through monitoring and controlling cost, searching for a better alternatives production inputs which save times and cost.
In addition, increasing the optimal level of material usage and decrease wastage can also help in controlling cost. Thus competitive advantage is negatively correlated with production costs, I. E. Company’s competitive advantage increases when such company is able to cut its production costs (AH-eased, 1999). The next factor will be time’; it will directly affect the manufacturing output of manufacturing industry area as time is very crucial in this sector.
Reducing the setup time, Ana ten mean Trot ten customers Ana Eden Increasing reapply, anon a lot AT money are invested in improving the product quality. Furthermore, competitive advantage can be enhanced through improving the quality of its products by considering the quality of production inputs and personnel’s skills and adaptation to odder technology (Chem.& H. T. Toots). Both of them can be done through KIT system which was introduced by the Japanese largest mobile manufacturing company, Toyota or KIT also initially known as Toyota Production System.
The idea of KIT was usually trying to reduce the wastage, reducing the setup time which in another way, reduce cost too. To understand the impact of KIT, we have to understand how KIT works. KIT is an advanced technique to adopt, it was not easy to implement on every company. As the setup cost is very high, the process might take a long time and the success rate wasn’t being guaranteed too. Therefore, once the KIT was implemented, it was very crucial and important for us to look at how much KIT system had brought to the manufacturing industry for so far.
Literature review KIT production was originated by Tactical Non, the godfather of Toyota production system, as ” All we are doing at the time line from the moment the customer gives us an order to the point when we collect the cash, and we are reducing that time line by removing the non-value-added wastes” (Liker, 2004). One of the reasons why Toyota develop KIT and other better production techniques is because during the World War II, Japanese people had a very strong incentive to develop good manufacturing techniques to help them rebuild the economy as war had bring a large economic impact on their nation (Change, 1996).
Toyota engineers also discovered that there are 7 forms of waste in their manufacturing process. They are waste of overproduction, Waste of inventory, Waste of repair/defects, Waste of motion (unnecessary movement), Waste of processing, Waste of waiting, and Waste of transport (Woman and Ross, 1990; Imam, 1997; Taylor and Brunt, 2001; Liker, 2004). There will be no Lear definition of KIT as KIT is usually summarized in a very brief statement, this result in information being omitted and causes confusion (Hillman et al. 1997). Voss and Robinson(1997) describe KIT as “KIT may be viewed as a production methodology which aims to improve overall productivity through the elimination of waste and which leads to improved quality. In the manufacturing/assembly process, KIT provides the cost-effective production and delivery of only the necessary quality parts, in the right quantity, at the right time and place, while using a minimum of acclivities, equipment, materials and human resources.
KIT is dependent on the balance between the stability of the user’s scheduled requirements and the supplier’s manufacturing flexibility. It is accompanied through the application of specific techniques which require total employee involvement and team work”. However, some research has shown several benefits obtained by implementing KIT production. According to Hay (1988), KIT not only bring the companies with great increases in quality of their manufactured goods, but also help a company to cut response time to market nearly 90 percent.
The most cited KIT benefit is cost reduction. Inventory reduction, increased quality and productivity levels, improved relationship with suppliers, improved customer service, reduced lead time, reduced work In process Ana raw materials, Increased Inventory turnover, noontime reduction, workspace reduction are also included in the benefits (Emmer and Inman 1992; Shoal et al. , 1993; Markham and McCarty 1995; Yeast and Waft 1996; Survivalist and Guppy, 1997; Imam 1997) However, there are also barriers that may potentially stop the successful implementation of KIT production.
Nowadays, the absence of senior management commitment and support was the most common reason why KIT fail to implement. Ignorance of educating supplier about how the KIT works also often a neglected part of KIT implementation, and companies seeking to implement KIT fully would benefit greatly by addressing this issue (Shoal et al. , 1993). One important barrier is local culture in countries other than Japan. Many researchers insisted on Japanese culture as one of the main reasons for KIT success in Japan (Rampart et al. , 1994).
Other barriers include lack of formal training/education for management and workers, and jack of cooperation with suppliers (Salesladies, 2005), obstacles to employee participation (Lawrence and Lewis, 1993), schedules may be more complex because changeovers are frequent (Brown and Mitchell, 1991), and lack of accurate forecasting system (Waft and Yeast, 1998) Problem statement and research question By referring to the background of industry manufacturing, the research between KIT system and manufacturing industry should be expanded.
Theoretical and practical framework of KIT system also co The main research question in this research is: * How KIT brings impact to the manufacturing industry? Sub questions which will be addressed in the research will be as follow: * What are the elements would lead too successful KIT system? * How a successful KIT system can be implemented into manufacturing industry? * How to achieve competitive advantage by implementing KIT system? What would be the cost, setup time, product quality and financial system of the company be affected? * How the manufacturing output be affected by the implementation of KIT system? Hypothesis HI : There will be no impact on manufacturing industry after implementing the KIT system H2O : There will be impact on manufacturing industry after implementing the KIT system For the hypothesis part, I would like to added more points and information on the impact of KIT system to manufacturing industry if H2O was accepted.
Objective of the research The objective of the research is to: * Explore whether there will be an impact on manufacturing industry if KIT system is implemented * Explore the effect that taken place in manufacturing industry in their output, time, cost and others by implementing the KIT system * To identify the factors for KIT to be success in manufacturing industry.
Study Model Independent variable * Implementation of KIT system Dependent variable Competitive advantage * Amount of raw material inventory Product equal * Cost leadership * Financial growth Methodology of the research This thesis is to conduct a research on the relationship between KIT system and manufacturing industry, how the implementation of KIT system brings the impact and how large the impact will be to the manufacturing industry.
How KIT system will help the company to achieve competitive advantage and how the amount of raw material inventory, product quality and cost will be affected. For this research, I plan to use mixed-methods research as my research problem will be having both qualitative and initiative dimension. To fully express them, I must use both qualitative and quantitative techniques. This also allows the researcher to be more flexible in gathering data and analyzing the data within the period given.
Data Collection Primary data Primary data will be used in this research if the company willing to accept my interview and questionnaire distributed to them. Referring to Saunders ; Lewis (2009), questionnaire is more applicable for explanatory research because it enables author to examine and evaluate the relationships between independent variable Implementation of KIT system) and dependent variable (Effects of implementing KIT system on cost, quality and others). Flexibly, questionnaire enables the author to collect both qualitative and quantitative findings.
Accordingly, a self-administered questionnaire will be distributed to the manufacturing company in Malaysia so that I could explore more information in Malaysia and compare it through the data or information that I find in the internet or reliable sources so that I could make some comparisons between Malaysia and other country on the impact of KIT system on manufacturing industry. Secondary data This research will be focusing on secondary data, this is because the manufacturing industry is very wide and the research about effect of KIT will be very hard to explained by those superior or top management too.
It was hard to ask them to meet us up for interview and survey. So the information will be gathered through searching the literatures which involving readily available material. Furthermore, using secondary data enables author to compare with other researchers using primary data (Stewart ; Gamins, 1993). This materials will include internal company information, newspaper, magazine online databases and any other published materials which are readable. In addition, I will try to conduct some interview with some experts or accountants who work in the manufacturing company in order to gain some information which are not publicly available.
Conclusion In conclusion, the thesis investigated the impact of KIT system on manufacturing industry and their connection between each other. In addition, I will be analyzing the factors that will lead to the success of implementation of KIT system in the manufacturing industry. How effective will the company will gain in terms on product, cost and time after the implementation of KIT system. With the aim of the dominant research question: How the KIT system brings impact to the manufacturing industry.
I nee study wall lea to ten conclusion as Tallow: * Success factors for the success of implementation of KIT system * There will be an impact on manufacturing industry by implementing KIT system * There will be a large impact on cost, quality and time on the company that implement KIT system