The recognition of Japanese products of low prices and good quality has led Western countries to study the manner of the Japanese success. 'Just-In-Time' (JIT) is the winning secret. The concept of JIT is to eliminate non-value-added waste. JIT is different to Western mass production in several aspects. The Kanban system, also known as a 'pull system', is the central idea that places the importance of customers in first place. Stockless inventory management is the way to fulfil the customers' requirements. Close co-operation with suppliers, and total quality control, need to be addressed before inventory can be reduced. Employee involvement and continuous improvement provide the best environment for the implementation of JIT.
This study seeks to discover the state of JIT implementation in Queensland manufacturing. It finds that a high proportion of firms (about 22%) have never heard of JIT. Only one third of firms have implemented JIT. From an ex-ante perspective, statistical results indicate that materials quality, firm size, and proximity of suppliers are important factors in a firm's decision to adopt JIT. From ex-post perspective, nonfinancial performance measures, more frequent materials delivery, flatter organisation structure, and longer period of implementation are found to be important conditions for a successful JIT implementation.