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SUSTAINING JUST IN TIME (JIT) MANUFACTURING IN NIGERIA MOTOR ASSEMBLY, A CASE OF ANAMMCO, ENUGU

Project Topic: SUSTAINING JIT MANUFACTURING IN NIGERIA MOTOR ASSEMBLY INDUSTRY – A CASE OF ANAMBRA MOTOR MANUFACTURING COMPANY (ANAMMCO), ENUGU


CHAPTER ONE

INTRODUCTION

  • Background of the Study

SUSTAINING JIT MANUFACTURING IN NIGERIA MOTOR ASSEMBLY INDUSTRY – A CASE OF ANAMBRA MOTOR MANUFACTURING COMPANY (ANAMMCO), ENUGU:

Necessity they say is the mother of invention, new circumstances require new arrangements. To meet up with the increasing requirements for efficiency and responsiveness, manufacturing and operations management philosophies have been developed during the past decades. Just-in-Time (JIT) is one of them, first introduced at Toyota Motor Corporation (SUGIMORI et al. 1977). The term just-in-time is used to refer to a production system in which both the movement of goods during production and deliveries from suppliers are diligently timed so that at each step of the process the next (usually small) batch arrives for processing immediately the preceding batch is duly completed. Appropriate planning and control mechanisms are necessary basis for the effective implementation of the JIT idea in any organization. JIT is a philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands total companywide focus on quality towards achieving world class manufacturing where production is driven by demand.

JIT was first developed within Toyota manufacturing plants by Taiichi Ohno during the beginning of the 1970s. The oil embargo triggered his theory, the program was intended to reduce wastes, reduce inventories and increase production efficiency in order to maintain Toyota’s competitive edge. He believed that customers should be satisfied with maximum quality in the shortest possible time. Toyota came to realised that JIT would only be successful if every individual within the company was fully committed to the new project. At the start JIT was used as a method of reducing inventories in Toyota’s shipyards, but afterwards it evolved to a management philosophy containing a set of manufacturing techniques. These and more conditions triggered the need for JIT philosophy and these conditions not only exist today in Japan but also in every part of the world including Nigeria.

In Nigeria in general there is not room enough for most business activities especially in our major cities and industrial areas, reduction of inventories is therefore a welcomed idea. In Onitsha for example, many industries and marketers have their warehouses situated kilometres away from the main factory or market. The cost is enormous yet commitment to consumers is becoming the most decisive factor on who get what in the market. Consumers’ satisfaction has become a priority- costumers need quality goods and services at their beck and call. Anambra Motor Manufacturing Company (ANAMMCO), one of the Nigerian motor assembly companies, located at an industrial layout in Enugu is used in this research to tell the Nigerian story. In this study, visitations, careful observations, interviews were embarked upon to be able to account for the level of JIT implementation, setbacks and solutions in Nigerian motor assembly companies.

  • Research Problem

As manufacture advances in technology there is need for Nigerian firms to collectively as well as individually move with the trend. Many Nigerian firms don’t apply JIT because they don’t have the idea of how it works, some have the idea but don’t know how to go about moving from the conventional manufacture to JIT manufacture. Still many Nigerian firms have imported and countless would like to import this technique and emulate Japanese success. But this Japanese success may be attributable not only to the Just-In-Time with kanban technique but also to the production environment in which the technique is employed. Nigerian environment is not as ordered and JIT friendly like the Japanese, majority of raw materials are imported, so there is a need to draw a line on the application of JIT in Nigeria. Every motor assembly firm in Nigeria has their own peculiar problems, challenges and advantages; there comes the problem of how to go about the technique to be applied in modelling and evaluation by the respective firms. Most of the recent work on JIT analysis and modelling based their work on manual technique making it hard for firms to really compare and select the most suitable technique.

ANAMMCO is located at Emene, an outskirts of Enugu but Emene is also becoming congested due to influx of new companies. The increase in demand of automobile in Nigeria today has given ANAMMCO a task of struggling for their market share especially with new motor assembly companies springing up. ANAMMCO was established in 1980 with a capacity of 1000 buses and 1500 trucks to be produced in two production lines per annum but this has not been achieved. The company makes products both to order and to stock. They don’t manufacture the engine parts so they are imported from Germany. They manufacture the body of the automobiles but due to the recent decline in steel production in Nigeria majority of the steel sheets needed are imported from Brazil.

  • Aim and Objectives
  • Aim

This study aims at ensuring sustainable effective JIT application in Nigeria motor assembly industry.

  • Objectives

To achieve the above stated aim, the following objectives were pursued:

  1. To demonstrate the advantages of JIT over conventional production and give the best means of switching to JIT.
  2. To shed lights on and compare the various techniques in JIT evaluation and modelling.
  3. To develop and use a computer simulation model to unveil ANAMMCO’s production shortcomings.
  4. To show the problems mitigating application of JIT in Nigeria and proffer solutions.
  • Significance of the Study

This study was chosen because it will not only provide students with the basic knowledge of JIT, its analysis and modelling but will also give entrepreneurs- companies and SMEs- the basic and adequate knowledge they need to embrace it. Nigerian entrepreneurs would be able to embark on the following;

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Topic: SUSTAINING JIT MANUFACTURING IN NIGERIA MOTOR ASSEMBLY INDUSTRY – A CASE OF ANAMBRA MOTOR MANUFACTURING COMPANY (ANAMMCO), ENUGU

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