Adoption of JMM practices – A key to performance improvement of a local automotive industry

It is imperative for a manufacturing company all over the world to constantly look for ways to increase productivity and at the same time to lower cost to secure a competitive position. It is recognized that practices associated with Japanese Manufacturing Management (JMM) can yield a superior comp...

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Main Authors:	Mohiuddin, A. K. M., Abdul Jabar, Julia, Khan, Ahsan Ali, Karim, A.N. Mustafizul
Format:	Conference or Workshop Item
Language:	English English
Published:	IOP Publishing 2017
Subjects:	T Technology (General)
Online Access:	http://irep.iium.edu.my/56317/ http://irep.iium.edu.my/56317/ http://irep.iium.edu.my/56317/ http://irep.iium.edu.my/56317/1/Mohiuddin_2017_IOP_Conf._Ser.%253A_Mater._Sci._Eng._184_012066.pdf http://irep.iium.edu.my/56317/7/56317-Adoption%20of%20JMM%20practices_SCOPUS.pdf

id	iium-56317
recordtype	eprints
spelling	iium-563172017-11-05T16:51:04Z http://irep.iium.edu.my/56317/ Adoption of JMM practices – A key to performance improvement of a local automotive industry Mohiuddin, A. K. M. Abdul Jabar, Julia Khan, Ahsan Ali Karim, A.N. Mustafizul T Technology (General) It is imperative for a manufacturing company all over the world to constantly look for ways to increase productivity and at the same time to lower cost to secure a competitive position. It is recognized that practices associated with Japanese Manufacturing Management (JMM) can yield a superior competitive advantage in terms of productivity, quality and provide overall successful business performance. This paper discusses the transfer of the best practices of the JMM locally and analyses the impact of adoption and adaptation of the management system as an in-depth case study conducted in a Malaysian automotive company. This study is to identify what are the changes in terms of the philosophy and practices undertaken by the company and ascertain the impact of the JMM on its manufacturing and financial performances. The elements of business performance from the viewpoint of manufacturing are based on safety, Parts Per Million (PPM), in-line Defect per Unit (DPU), First Time Quality (FTQ), cycle time, productivity, efficiency and stock level. The results show a positive impact to the automotive plant manufacturing performance. For example, safety index has reduced to 0 major accident occurrences. The PPM and In-line DPU have improved by 98% and 91% respectively whereas the FTQ has improved by 167%. Cycle time has reduced from 20 to 6 minutes and productivity increased up to 43% whilst the efficiency reached at 99.9%. The stock level was reduced from half month to 3 days after the adoption of the JMM. The revenue has increased up to 92%, the percentage of expenses has reduced from 11.04% to 3.06% giving an improvement of 72% whilst the net profit has increased from 5.33% to 8.15%. The Return of Asset (RoA) and Return of Equity (RoE) also showed slight improvement despite the effects from the restructuring exercise, Tsunami calamity and fluctuation in Japanese exchange rate. IOP Publishing 2017-04-03 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/56317/1/Mohiuddin_2017_IOP_Conf._Ser.%253A_Mater._Sci._Eng._184_012066.pdf application/pdf en http://irep.iium.edu.my/56317/7/56317-Adoption%20of%20JMM%20practices_SCOPUS.pdf Mohiuddin, A. K. M. and Abdul Jabar, Julia and Khan, Ahsan Ali and Karim, A.N. Mustafizul (2017) Adoption of JMM practices – A key to performance improvement of a local automotive industry. In: 3rd International Conference on Mechanical, Automotive and Aerospace Engineering, ICMAAE 2016, 25-27 Jul 2016, Kuala Lumpur. http://iopscience.iop.org/1757-899X/184/1 doi:10.1088/1757-899X/184/1/012066
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	T Technology (General)
spellingShingle	T Technology (General) Mohiuddin, A. K. M. Abdul Jabar, Julia Khan, Ahsan Ali Karim, A.N. Mustafizul Adoption of JMM practices – A key to performance improvement of a local automotive industry
description	It is imperative for a manufacturing company all over the world to constantly look for ways to increase productivity and at the same time to lower cost to secure a competitive position. It is recognized that practices associated with Japanese Manufacturing Management (JMM) can yield a superior competitive advantage in terms of productivity, quality and provide overall successful business performance. This paper discusses the transfer of the best practices of the JMM locally and analyses the impact of adoption and adaptation of the management system as an in-depth case study conducted in a Malaysian automotive company. This study is to identify what are the changes in terms of the philosophy and practices undertaken by the company and ascertain the impact of the JMM on its manufacturing and financial performances. The elements of business performance from the viewpoint of manufacturing are based on safety, Parts Per Million (PPM), in-line Defect per Unit (DPU), First Time Quality (FTQ), cycle time, productivity, efficiency and stock level. The results show a positive impact to the automotive plant manufacturing performance. For example, safety index has reduced to 0 major accident occurrences. The PPM and In-line DPU have improved by 98% and 91% respectively whereas the FTQ has improved by 167%. Cycle time has reduced from 20 to 6 minutes and productivity increased up to 43% whilst the efficiency reached at 99.9%. The stock level was reduced from half month to 3 days after the adoption of the JMM. The revenue has increased up to 92%, the percentage of expenses has reduced from 11.04% to 3.06% giving an improvement of 72% whilst the net profit has increased from 5.33% to 8.15%. The Return of Asset (RoA) and Return of Equity (RoE) also showed slight improvement despite the effects from the restructuring exercise, Tsunami calamity and fluctuation in Japanese exchange rate.
format	Conference or Workshop Item
author	Mohiuddin, A. K. M. Abdul Jabar, Julia Khan, Ahsan Ali Karim, A.N. Mustafizul
author_facet	Mohiuddin, A. K. M. Abdul Jabar, Julia Khan, Ahsan Ali Karim, A.N. Mustafizul
author_sort	Mohiuddin, A. K. M.
title	Adoption of JMM practices – A key to performance improvement of a local automotive industry
title_short	Adoption of JMM practices – A key to performance improvement of a local automotive industry
title_full	Adoption of JMM practices – A key to performance improvement of a local automotive industry
title_fullStr	Adoption of JMM practices – A key to performance improvement of a local automotive industry
title_full_unstemmed	Adoption of JMM practices – A key to performance improvement of a local automotive industry
title_sort	adoption of jmm practices – a key to performance improvement of a local automotive industry
publisher	IOP Publishing
publishDate	2017
url	http://irep.iium.edu.my/56317/ http://irep.iium.edu.my/56317/ http://irep.iium.edu.my/56317/ http://irep.iium.edu.my/56317/1/Mohiuddin_2017_IOP_Conf._Ser.%253A_Mater._Sci._Eng._184_012066.pdf http://irep.iium.edu.my/56317/7/56317-Adoption%20of%20JMM%20practices_SCOPUS.pdf
first_indexed	2023-09-18T21:19:26Z
last_indexed	2023-09-18T21:19:26Z
_version_	1777411782057394176

Adoption of JMM practices – A key to performance improvement of a local automotive industry

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