Empirical study on the relationship of flexible manufacturing system, cellular layout and pull production process with return on assets and inventory turnover.

Abstract

The use of Just-In-Time (JIT) inventory systems is widespread amongst manufacturing firms in the world. Nevertheless, there has not been a universal definition of JIT. Moreover, there is little research evidence suggesting a positive relationship between the elements of JIT and the financial performance of firms. In this paper, we have investigated on the effects of 3 JIT elements; Flexible Manufacturing System (FMS), Pull Production Process (PPP) and Cellular Layout (CL) on firm performance.