Impact of JIT Production on Organizational Performance in the Apparel Industry in Bangladesh

Abstract

Apparel manufacturers in Bangladesh are under constant pressure to improve their manufacturing performance in the current impulsive and intensely competitive business environment. The manufacturers are attempting to implement new and advanced manufacturing techniques to make their manufacturing process more productive. However, implementing advanced and innovative manufacturing techniques such as lean manufacturing or Just-in-Time (JIT) production in the developing country like Bangladesh is still challenging due to several critical barriers. The purpose of this paper is to investigate the implementation status of JIT, identify the relationship of JIT practice with the non-financial (operational) and financial (business) performance of the organization. Empirical data have been collected from 227 apparel factories using non-probability convenient sampling method. SPSS 20.0 and AMOS software were used for data analysis. The findings of this study provide evidence that JIT implementation has a significant direct impact on organizational performance.