SYNOPSIS

ON
“A DETAILED STUDY ON JUST IN TIME PRODUCTION TO
REDUCE INVENTORY LEVEL IN CIPLA LIMITD”

UNDER SUPERVISION OF
MONIKA SOUTIYAL

SUBMITTED BY
NAME: JASDEEP KAUR
ROLL NUMBER: 1408019957
Submitted in Partial fulfilment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA) in

FEB, 2020

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TITLE OF THE PROJECT
A DETAILED STUDY ON JUST IN TIME PRODUCTION TO REDUCE INVENTORY
LEVEL IN CIPLA LIMITD

INTRODUCTION & OBJECTIVE OF THE STUDY (Max. 200 words)

Introduction
JIT is a management philosophy that strives to eliminate sources of manufacturing waste by
producing the right part in the right place at the right time. The Waste results from any
activity that adds cost without adding value, such as moving and storing. The idea of
producing the necessary units in the necessary quantities at the necessary time is described by
the short term Just-in-time.
The implementation of this management philosophy in industries like the automobile
industry can bring about a see saw change in both quality & quantity since in a JIT
system, underutilized (excess) capacity is used instead of buffer inventories to hedge against
problems that may arise.

Objectives
1. To produce quality products as per the requirements of the customers.
2. To increase machine efficiency by eliminating the extra load and express problems and
bottlenecks.
3. To reduce lead time, batch size and inventory levels and ensuring high process
reliability.
4. To reduce set up time by maintaining consistency in production and elimination wastes.
5. To reduce the idle time of labor and machine and achieving zero level of inventory.

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STATEMENT OF THE PROBLEM (Max. 500 words)

Problem Statement
Since the inventory requirement are blocking huge capital & space at the company, JIT
production is supposed to reduce inventory costs. So I have tried to implement JIT
technology in my company to solve the problem of high inventory costs. Just in Time is a
production strategy that strives to improve a business return on investment by reducing in
process inventory and associated carrying cost. Just in Time is a type of operations
management approach which originated in Japan in the 1950s. It was adopted by Toyota and
other Japanese manufacturing firms, with excellent results. JIT inventory systems expose
hidden cost of keeping inventory, and are therefore not a simple solution for a company to
adopt. The company must follow an array of new methods to manage the consequences of
the change.

Literature Review
Many researchers have carried out significant work in the area of JIT. The literature related
to the present work was reviewed. Inmam and Mehra (1990) stressed upon the applicability
of JIT in service environments, including service part of manufacturing line. Some benefits
of JIT were reported as improved communication, elimination of warehouses, reduced
supplier base, improved vendor performance, improved quality, improved service, lower
price levels, quick response time etc. Benson (1996) reported that diverse service
organizations from bank cheque processing centers to hospital operating rooms are now
applying JIT philosophy to the special problem of service production. It was hoped that
service industries will continue to investigate the potential advantages of JIT and soon the list
of successful case histories will include hotels, educational facilities and leisure
establishments Garg et al. (1996) analyzed some vital issues in JIT purchasing in an Indian
context on the basis of a questionnaire (n=28) sent to 80 different Indian Industries.

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The issues include the importance of JIT attributes, problems in implementing JIT, and
expected benefits from JIT purchasing implementation. Some research directions were also
identified for future work. Garg and Deshmukh (1999) said that JIT have great importance in
Indian context due to its wide range of benefits. Although, the success stories of these
management philosophies are limited in India yet, several Indian Industries are implementing
basic principles of JIT. Yasin and Small (1994) concluded on the basis of investigation of 86
organizations of US public sector, that JIT is a form of “managerialism”, has the potential to
increase the operational efficiency, service quality and organizational effectiveness of public
sector organizations. Sharma and Singh (2005) conducted a case study on two Indian
agricultural equipment-manufacturing companies, which have implemented JIT. In one case
the profits of the company were found to have increased by 10%. While in the second case
the company was successful in reducing the level of inventory by over 20%

RESEARCH METHODOLOGY
Research methodology is a way to solve the research problem in a systematic manner. It may
understand as a science of studying how the research is done significantly. The methodology
may differ from problem to problem, yet the basic approach towards the research remains the
same. The sequence or steps followed have been explained as under:
DATA COLLECTION
The collection of information is done through two principal sources, viz.
 Primary Data:
a) Observation
b) Personal Interviews
Interview and questionnaire have been used to conduct the study. A structured
questionnaire consisting close-ended questions have been made, which is filled by the
trainee during direct interaction with the respondents.
 Secondary Data: The secondary data will be collected from already published
sources such as pamphlets of annual reports, internal records, books, journals,
magazines, and websites.

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NATURE OF RESEARCH
This is a descriptive research as it will be clarified the doubts about online marketing. It
would give us a clear picture on the effectiveness and reliability of online marketing
compared to the offline form of marketing.

Sample universe
 Basis of sampling: Sample should be a user of internet or should have knowledge
about internet and 50 numbers in all
 Sampling Method: Judgmental Non Probability sampling is used to select the
individual units for better productivity of the questionnaire. A well educated person
may be able to reason out the questions in the better way. Sampling method refers to
the rules and procedures by which some elements of the population are included in
the sample. Some common sampling methods are simple random sampling, stratified
sampling, and cluster sampling.
 Population:
The total element of the universe from which sample is selected for the purpose of
study is known as population, the population of my research is the employee of
CIPLA Limited.
 Area of research: New Delhi
 Number of respondents: 50

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RESEARCH TOOL APPLIED

Research Design: The research design refers to the overall strategy that you choose to
integrate the different components of the study in a coherent and logical way, thereby,
ensuring you will be effectively address the research problem; it constitutes the blueprint for
the collection, measurement, and analysis of data.

Nature of research
The research design used for this study is of the descriptive type. Descriptive research studies
are those studies which are concerned with describing of a particular individual or a group.

DATA ANALYSIS & INTERPRETATION: Classification & tabulation transforms the

LIMITATIONS
 The time constraint may be one of the major problems.
 The lack of information sources for the analysis part.
 Selection of the people who are under consideration as sample for the study may not be
the best sample selected.
 Sample size will be limited due to the limited period allocated for the survey.
 Getting accurate responses from the respondents due to their inherent Problems,
personality traits, and mood fluctuations will be a very difficult task.

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REFERENCES

BOOKS:
1. Balakrishnan, R., Linsmeier, T.J., Venkatachalam, M., 1996. Financial benefits from
JIT adoption: effects of customer concentration and cost structure. The Accounting
Review 71 (2), 183–205.
2. Celley, A.F., Clegg, W.H., Smith, A.W., Vonderembse, M.A., 1986. Implementation
of JIT in the United States. Journal of Purchasing and Materials Management, 9–15.
3. Droge, C., Germain, R., 1998. The just-in-time inventory effect: does it hold under
different contextual, environmental, and organizational conditions? Journal of
Business Logistics 19 (2), 53–71.
4. Foster, G., Horngren, C.T., 1987. JIT: cost accounting and cost management issues.
Management Accounting 6, 19–25.
5. Gilbert, J.P., 1990. The state of JIT implementation and development in the USA.
International Journal of Production Research 28 (6), 1099–1109.
6. Norris, D.M., Swanson, R.D., Chu, Y., 1994. Just-in-time production systems: a
survey of managers. Production and Inventory Management Journal 2, 63–66.
7. Peters, T., 1990. Time-obsessed competition. Management Review 9, 16–20.
8. Bowen D. & Youngdahl W. (1998). Lean Service: In Defence of a Production-Line
Approach, International Journal of Service Industry Management Vol.9 No.3
9. Karlsson C. (1995). Total Effectiveness of Just-In-Time System, International Journal
of Operations & Production Management, Vol 14 No 3.
10. Kochan A. (1997). Ford – Valencia: Just In Time and Just On Site, Assembly
Automation, Vol. 17 No. 1
11. Ramarapu N. (1995). A Comparative Analysis and Review of JIT Implementation
Research, International Journal of Operations & Production Management, Vol. 15
No.1.

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LINKS:
 www.bdaconnect.com/india/ficci
 www.google.co.in
 www.wikipedia.org
 www.ibef.org
 www.trai.gov.in
 www.scribd.com
 http://www.infoedge.in
 www.rediff.com
 www.marketingterms.com
 www.internetworldstats.com
 http://www.wisegeek.com/
 http://www.truckads.com/
 www.emarketer.com