JIT-in the Indian Auto Industry*

Details

Case Code : CLOM009
Publication date : 2006
Subject : Operations
Industry : Auto and Ancillaries
Teaching Note : Available
Length : 05 Pages
Price : Rs. 100

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Key words:

Production Management, JIT, Auto Industry, Supply chain, General Motors, Buffer Inventory, Hyundai, Getz, Maruti Udyog, M&M, Tata Motors, Daimler Chrysler, Hero Honda Motors, TQM, TPM, Kaizen, Mass customization, Zero error production, Supplier Relationship Management, My SAP, Cellular manufacturing, Quality circles

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract

The caselet presents an insight into one of the few but significant drawbacks of JIT. Just-in-Time has been widely adopted in the Indian automobile manufacturing industry. But, the auto manufacturers have faced problems due to the lack of a proper support system. The caselet describes how the auto manufacturers have taken precautionary steps to deal with the situation to gain maximum returns from the implementation of JIT.

Issues:   » Importance of JIT in the Indian auto industry   » Need for supply chain efficiency for successful implementation of JIT   » Strategies to ensure maximum efficacy of JIT Introduction The Indian automobile component manufacturing industry has, over the years, grown into a major supplier in international markets. Indian auto manufacturing companies have the advantages of a low cost of production, high quality products and a good supply chain.

This, over the period of time, led to the rise in its popularity among foreign auto-manufacturers. According to SIAM, in 2004 the Indian automobile industry grew by 54%, exports in auto ancillaries grew by 29%, and exports of auto components rose 32% to $1 billion compared to 2003...

Questions for Discussion:

1. In their zeal to implement new concepts like TQM and JIT, auto companies in India have overlooked the importance of viewing the supply chain as a whole. Most of the auto manufacturers focused on implementing JIT from an interfirm production perspective. What do you understand by JIT interfirm production? What are the inevitable limitations of this approach to production?

2. ‘JIT is certainly one of the best practices in any production system but you need to have supply chains streamlined for it'what in your views can be done to streamline the supply chain in order to achieve greater efficacy?