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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/56317/1/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
http://irep.iium.edu.my/56317/
http://iopscience.iop.org/1757-899X/184/1
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spelling my.iium.irep.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 REM 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
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
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/56317/1/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
http://irep.iium.edu.my/56317/
http://iopscience.iop.org/1757-899X/184/1
_version_ 1643614891416748032
score 13.211869

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