Int. j. econ. manag. soc. sci., Vol(3), No (10), October, 2014. pp.

533-539

TI Journals

International Journal of Economy, Management and Social Sciences

www.tijournals.com

ISSN:
2306-7276

Copyright 2014. All rights reserved for TI Journals.

The application of the JIT model in the service organizations

Alireza Naderi Khorshidi
Associate Professor, Management and Planning Faculty, Imam Hossein University, Iran.

Mohebali Dehghani
PhD student, Systems management, Iran.

Nikzad Amiri *
Qom Science and Research Branch of the Islamic Azad University, Qom, Iran.
*Corresponding author: nikzad.amiri@gmail.com

Keywords

Abstract

JIT
Services
Quality

The concept of (JIT) has successfully implemented in the manufacturing organizations. The researchers
agree that the (JIT) is able to reduce the production cost and improve the products' quality. All the evidences
are reported about the success or the failure of (JIT) application. Although the concepts and the tools of the
(JIT) are developed in the production, but they can be identified, analyzed and changed for the service
organizations. This paper suggests a framework to improve the (JIT)-based service qualities which is
accepted as a beneficial framework for the manufacturing organizations.
In this paper, a theoretical method of service quality is suggested which is based on the literature, history of
the service quality and (JIT), field studies and the identified related factors. Moreover, a research method is
provided for the practical testing model of service organizations' actual data using to test the (JIT) effects of
the service organizations. Finally, a theoretical framework is prepared to support the (JIT) application in the
service organizations.

1.

Introduction

The researchers all agree that the (JIT) is a useful approach which can reduce the production cost and at the same time improve the product
quality [1]. Many organizations have reported that the costs are reduced and the products' quality is improved due to the (JIT) use. Most of the
reported successes and failures are occurred within the sphere of production. Some of the case studies have reported the (JIT) application in the
service sector, the benefits of improved service providing to customers, the response time reduction, quality improvement and cost reduction in
the different service organizations.
The global competition expansion, emergence of new technologies and communication improvements has increased the customer expectations
for complete satisfaction of the received products and services. As a result, in the last decades, many manufacturing and service companies are
faced some challenges for the focusing on the customer satisfaction and service and product quality. Facing the global competitions around the
world has forced the companies to find different ways of reducing the costs, improving the quality, and facing the repetitive changes of
customers' demands. The (JIT) systems application is a successful way of facing these challenges which includes the production, marketing, and
buying. In 1950, (JIT) has developed in Japan and it obtained notable success in Toyota Company. The (JIT) can be defined as a designed
concept for waste reduction. Waste is anything other than the minimum equipment, materials, components, work space and working time that
increase the service or product value.
Challenges in the service organizations are not as obvious as they are in the manufacturing organizations, because the service organizations can
not behave as a commodity for some of the abnormal characteristics. In fact, most of service organizations specifications are different from that
of manufacturing organizations. Yet, some of the developed concepts of manufacturing sphere can be changed for the benefit of service
organizations [2, 3].
[4] Have used the concept of quality function development for the service organizations. The statistical process control, (JIT), and the quality
development are obtained in the production and then, they have been changed to accommodate the service organizations. This paper is based on
this idea that the philosophy of the (JIT) can be used in the service sector. Our purpose is to develop a theoretical method and framework for
(JIT).
At the same time with the model identification, the relation between the (JIT) functions and service quality will be discussed and this framework
supports the service organizations in the means of service quality improvement by (JIT).

2.

The service system

All the researches in this field should look for the differences between the service systems and manufacturing systems. The recent studies [5]
have shown that the main and basic specifications which distinguish a service from a product are:

The non-separability of production and consumption

This included the concurrent production and consumption which is the basic characteristic of the most of service organizations. The
concurrent production and consumption can eliminate the chances of applying the quality control. Unlike manufacturing which in the
product can be inspected before delivery, we have to make sure that an evaluation has been done for the outputs coordination control

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International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.

in the services. This topic mostly focuses on the importance of process control in the service companies than the manufacturing
companies.
The customer is a participant of service providing
The customer always participates in the process of servicing, but the amount of this participation can be different. By using a top-down
classification for the services, we can evaluate the relation between the flexibility and efficiency of the operations. In general, the high
communication technology is more flexible for the abnormal needs of different customers. When the flexibility is high the operation is
less because it's not easy to standardize the conversion process. At the lowest point of the communication hierarchy, the process
technology has less flexibility because the customers are not present during the conversion process, so the operation can be leaded to
standardization.
Non-tangiblity
Since the service companies provide services, the concepts or ideas, are not visible but the goods are tangible. When a customer buys a
product, he is able to see and touch the product before he buys it, but about the service, he has to rely on the companies' reputation.
These factors are less measurable and can be affected by the customers' observation and their expectations from the products.
Destructibility:
This means that the service can't be stocked or be changed to the finance. The disability of service storage is one of the critical aspects
of the service companies operations. The hotel vacant room, the airplane vacant seats and the unsuccessful appointments for a doctor,
are the examples of a missed-opportunity loss. This concept leads to the problems of balancing the demands and supplies and forces
the customers to choose whether to wait or don't receive any service at all.

2.1 The service quality

The service quality is a criterion which shows how much the provided services are matched with the customers' demands [6]. The service quality
measurement is one of the main challenges for the service companies. [7] Have developed a service quality model which is shown in figure 2
and the service quality has 5 branches in it which are made from the difference between the expected services and the provided services. This
model shows the customer expectations from a service and under the relation with other customers, employee needs and past experiences. On the
other hand, four gaps which effect the customer perception about of service are:
First gap: between the customer expectations and the management perceptions of customer expectations. This gap can be formed because of the
lack of understanding in the management part about the characteristics which prevent a high quality product supply.
Second cap: between the management perceptions of customer expectations and the service quality specifications. This comes as a result of the
lack of management commitment and it depends on the specific limitations like the lack of available trained personnel, customers' expectations
changes and etc. The service quality specifications may not be obtained with the Management perceptions of customer expectations.
Third gap: between the service quality specifications and the implementation level of these features during the service. The personnel have an
important role in these services. Their operation may not be standardized to make their operations changeable and it results in the third gap.
Fourth gap: the difference between the service and the external communication with customer. Lack of awareness, vision and customer
information about specific aspects of service quality during service may lead to gap 4.
The received service quality by the customer depends on the fifth gap management, which depends on the design, retrieval, and delivery of
services. The arrangement of this process is one of its disadvantages. Arrangement, passes the customer comments through the operations which
have been changed for several times. So in this step, the existing gap between the customer and service becomes wider and leads to a big
difference between the customer expectations and the received service.
2.2 The relation between (JIT) and service quality
People who think that the (JIT) is for the inventories reduction don't know that the (JIT) is a system which can be used in the service companies.
However, it's observed that the system is beyond the inventory reduction levels. (JIT) eliminates the loss and linear operation, promotes the fast
changes and limits the relations with the suppliers and quickly adapts to the changing customer demands. As a result, the products and services
can be obtained with a lower price and a higher diversity.
The service organizations should imagine themselves as production actors who can progress in the quality service improvement. The similar
technology systems in the production sector should be used in the service sectors, too. Based on the fact that the most of the activities in the
service system are similar to that of the production system, the service system can use the product techniques to improve the services and profits
[8].
As a manufacturer who manages the inventories, if the accounting sector be able to manage the personnel, it will improve [9]. In a factory that
uses the (JIT) system, the amount of the inventory is as much as needed. The suppliers just offer those units that the producer needs to make an
effective product cycle. The similar techniques can be used for manpower through a planning and analyzing process which in the employee
duties would be specified to assess the priorities.
The (JIT) concepts have a notable potential in the hospital operations improvement. Is the hospitals use the (JIT) techniques to reduce worthless
activities, they would have more available time to focus on the beneficial activities, so they can improve their clients services and make a better
operation [10]. Moreover, the (JIT) elements in the hospitals include: the inventory reduction in the hospital materials managements, the flexible
personnel in nursing field and the paperwork reduction in documentation of doctors operations. The continuous improvement concepts and the
quality control in the (JIT) system will be visible with the employee contribution and inventory reduction.
[11] Studied the operational history of the (JIT) in the service sector and analyzed the relation of (JIT) to the service organizations of the India.
He thought that (JIT) can be helpful to find some methods for improving the service sector in the India so the service sector will be able to face
the cost, quality and flexibility challenges. He also suggested that the case studies should be done in the service industries of the India to develop
an appropriate model for this country. This model should be able to produce and operate without causing any problem so the participants would
feel satisfied. He also suggested that the potential elements of the (JIT) should be identified to show which of these elements are more
appropriated to be implemented and which regions for these elements operation lead to achieve the best amount of advantages.

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International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.

[12] Did a case study about the process of (JIT) acceptance to accept different levels of the training institutions certificates in Harina. The
process was studied in details and a system was provided in the field of the (JIT). This study showed that the proposed system, can reduce the
admission time of each candidate and the total time of the process. The system also reduces the labor required, eliminated the lines and makes
the process clear so any participant will feel satisfied from the process.
Some observations show that the complete operation of (JIT) may be impossible because of the sources, technologies and skilled workers
unavailability.
[13] critically examined the (JIT) potential in the service sector of the India and analyzed it with the statistical tests. The results showed that the
service industries of the India, make the (JIT)elements more important. The (JIT) elements which were easy to be implemented were identified.
He has shown that the (JIT) implementation is very beneficial in India and many advanced service industries implement the (JIT).

3.

Service model (JIT)

This part of the study examines the (JIT) operation effect on the service quality. The provided factors show how much the (JIT) can operate
professionally in the service companies and it's provided in figure 3.
Synchronization
It includes the balance between the information and the workflow. This is really vital for the service companies. the service companies
should be able to balance the supply and the consumption and if not, the customers will use a competitive service company. This leads to
second gap.
Flexibility
The customer is a part of the process and the service should be able to respond to the sudden changes in customer demands. Changes in
demand pattern can affect the process selection. If the product hast to change according to the demand, a flexible process should be used so
it can be changed and be effective and at the same time according to the demand. The service companies should accommodate those
demands through making the manpower, timing and product more flexible. This may reduce the 2 nd gap and results in the service quality
improvement.
Simplified procedures
Reducing the duration of service or product supplying is one of the favorable results of the (JIT). The effort of this time reduction starts
with the order registration and the maturity date determination. Simplifying these processes helps to reduce these durations. This
simplification reduces gap3.
Service planning for (JIT)
Quality, price, timeliness and the necessary operations, all affects the quality planning. The participation is needed in the (JIT) planning
where the emphasis is on the 100% quality, shorter duration, more flexibility and waste reduction. The service planning is similar to the
montage planning. The service planning can be used as a strategy which can improve the planning and by following the rules it can simplify
the service process. These rules should primarily include the service levels reduction. Moreover, the service planner should make error- less
processes to avoid the service provider from making mistakes. This will reduce the 3rd gap.
Continuous improvement (kaizen)
(JIT) is not a one instance effort but its a continued effort which should be supported by all the personnel of service providing group and
the personnel should have the possibility of replacement. So they should work to improve the systems and personnel level during the
company lifespan. In the service companies instead of the inventories, the focus should be on the work force. The process improvement
targets include: rejection reduce, setup time reduce and maintenance time reduce. (JIT) focuses not on the product but on the process, so it
can (theoretically) be used in both service and manufacturing processes. The (JIT) supporting philosophy is that the (JIT) is looking for
more simplified and more beneficial processes. And this also reduces the 3rd gap and leads to the service quality improvement.
Personnel training and participating
The timing and the personnel training are really important in the field of intensive service providing. If an employee recognizes the
company as a single set to reduce the deviations in servicing, the service process will be improved and it leads to 3rd gap reduction. so the
service quality will improve. Each employee should have the permission to participate in the service process and provides suggestions and
in the case that his suggestions be accepted he will receive reward.
Standardization
Emphasis on the activities standardization results from the processes balance which is expected to improve the operational efficiency and
effectiveness of the process. The sources can focus on some parts through the business activities standardization. If the activities become
standard at the same time, and focus on the organizational sources and efforts, they may be able to improve the efficiency results. The
activities standardization may reduce the employee training cost and duration but the flexibility may remain to be able to service those
customers who have different demands. This will also simplify the service process and reduces the 3rd gap.
Cooperation
The cooperation is the most important element of (JIT) among all levels. Grouping can be possible through the cooperation. There should
be a team work to help the acceptance of the (JIT) concept. The cooperation helps in creating better ideas to improve the willingness to take
risks. The groups are formed to improve the process, solve the problems and try to learn a new method. Cooperation reduces the 3rd gap.
Full transparency
With a concurrent providing of the marketing operation and the operations in the service companies, the customer will be aware of the
service system. The customers usually pay attention to the deviations and it can affect the received service quality level. The full
transparency can reduce the 4th gap.
A holistic approach of waste elimination
In the production environments, anything without any value for a service or product will be called as a waste and all the efforts would be
towards its elimination. The emphasis is on reducing the different types of wastes include: inventory, waste movements, short comings, and

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International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.

unnecessary activities like inspection. This process reduces the 1st, 2nd, 3rd, and 4th gap. To reduce the material availability, (JIT) buying
focuses on customer development, the long lasting relationship between the buyer and the seller, the seller participation in product
designing, high quality of bought materials, delivery section and the transportation systems. These activities lead to the cost reduction and
the product quality improvement.
There are several service industries such as hospitals, repair and maintenance, restaurants and contacts which in the additional materials can be
reduced or eliminated by using the concept of (JIT) buying. In the healthcare services there are also unnecessary activities such as the additional
paperwork and the over-displacement of the patients that should be identified and eliminated. There are also some wastes in the overdisplacement of the parts which should be eliminated too.

4.

The proposed model examination

The proposed theoretical model of service quality is obtained based on the studies in the field of service quality and
(JIT), but the model is not yet examined by the actual data of service organizations so we will make a research to develop such a work.
At first, we will make a measurement tool to evaluate the (JIT) usage in the service organizations which is similar to that of [16].
The (JIT) criteria can be measured by the clear questions based on a 5 point-scale or the Likert scale. This scale measures the (JIT) operation in
the service organizations with other criteria like: the full transparency, synchronization, flexibility, quality, simplified processes, service
planning for (JIT), continuous improvement, employees training and participation, standardization and waste elimination. Secondly, the service
quality received by customers can be measured by using the SERVQUAL software. (SERVQUAL) is a multi-item tool which is used measure
the customer share of the service quality. This tool measures and evaluates the service quality with 5 other factors that are: objectivity,
reliability, sensitivity, commitment and agreement. The model can be tested through data collecting based on the (JIT) factors and using the 5
gaps by considering different sectors of the service organizations. These data can be analyzed by the statistical techniques such as Regression
which was previously discussed as a (JIT) criterion.

5.

Structural framework of the (JIT)

This part will support the (JIT) to implement it in the service organizations. This framework is made of 4 branches and is shown in figure 4.
Each branch is responsible to reach a specific target of the (JIT) environment.
The first branch which is necessary for the (JIT) model is the service management branch. This branch focuses on the results of the service
process and manages the information flow through the activities of this flow. This branch is responsible to keep a plan or a network for the total
service experience. This branch includes the name, person/group responsibility and the coordination/ dependency. The second branch includes
the tools for the data collection and analysis which can be used for the service planning or the service providing process. This branch may
include those tools which can be used to support the (JIT) group such as the e-mail and the shared database. Other analyzing devices such as the
Quality Function Development (QFD), (SPC), experts systems, benchmarking of competitors and etc. can be named in this branch. This branch
should be able to adapt to a website which can reflect the customer responses and comments which in the customers will be able to watch the
service specifications and e-mail their ideas. The modeling branch should include a service model and a process model. The service model
explains the characteristics of the service planning in an understandable format for all the customers. A process model, explains the needed
process for servicing. The process model can be either a verbal model (it means that the service will be explained through the words or
sentences) or an optical representation such as a flow chart. The last branch, is the communication branch that makes the physical conditions
between the different participants in the service system. This branch is simply a local network (LAN).

6.

Conclusion

This paper has provided a (JIT) model and framework for the service organizations. This model can be used to predict the (JIT) process effects
on the service quality. The framework can also be used to support the (JIT) operation and the structural support for the service organizations.
The implementation of such frameworks results in the service quality improvement.
(JIT) is able to reduce the service quality gaps through a new (JIT)-based reconstruction method which is shown in figure 4. It can be said that
the news about the (JIT) framework implementation in the service industries is individual element rejection within the framework. Yet the
system operation that is made by such frameworks is still the most important one. The (JIT) framework makes a communication environment to
support the group activities, improve the process, flexibility, quality, process specification, process changes development, closer relationships
and bilateral information sharing in the means of waste elimination.
Finally, there is no experimental evidence for the effects of the (JIT) process on the service quality. However we have to make a research
methodology for doing this work. The (JIT) data can be collected through the questionnaire which is provided in Appendix A and the data
related to the service quality can be collected by the (SERVQUAL) model. Moreover, the case studies in service organizations can be beneficial
to the collected data improvement in this model. A specific type of a service organization can be analyzed to identify the problems and explain
the processes. The next step is the identification and implementation of the (JIT) method. If these theories be accepted by the organizations to be
implemented, they should be analyzed and interpreted. The developed (JIT) samples of the service organizations can be used for the service
models. Finally, as we have said before, the effects of the (JIT) can be evaluated on the service organizations operation.

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The application of the JIT model in the service organizations

International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.

Customer
comment

Marketing

Supply

Figure 1: The service development process

Figure2: Service quality model

Planning

Management

Alireza Naderi Khorshidi, Mohebali Dehghani, Nikzad Amiri *

International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.

Figure 3: The JIT model & basic variables and the service quality in JIT

Figure 4: Branches of framework

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International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.

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