Just-in-Time Approach and Stock Management in Manufacturing Firms: A Case Study of Gourmet King Ltd Kampala

Abstract

TUMUHIMBISE SANDRA (2009-M101-10010) Just-in-Time Approach and Stock Management in Manufacturing Firms: A Case Study of Gourmet King Ltd Kampala There is a belief that Just-in-Time (JIT) as an approach to manufacturing in Uganda has undergone transformation which was achieved through streamlining, re-engineering and promoting timely deliveries and producing on schedule as planned in manufacturing firms. Balunywa (2006) observed that JIT, prior to the inception of other systems where firms used to produce and keep stock in stores in the 1980s and the pre-industrial revolution period, it was so much typical for many developing African countries. It was characterized by a high level of centralisation, un competitiveness, and little emphasis on value for time and money procurements and disparate companies have adopted JIT in the management of their stock such that they do not hold a lot of stock in their stores as it could get spoilt before orders set in. Numerous manufacturing firms and enterprises have, therefore, adopted the modern manufacturing vice of producing as orders come in. The study looked at the JIT approach in manufacturing firms in Uganda taking a case study of Gourmet King Ltd in Kampala. This study set out to generally examine the effect of the JIT approach on stock management in manufacturing firms in Uganda. It set out to examine the JIT stock management practices in Gourmet King Ltd, to examine the effect of the JIT stock management practices in Gourmet King Ltd, to identify the challenges of adopting the JIT stock management approach in Gourmet King Ltd, and to finally suggest solutions to these identified challenges. The study combined a number of designs to attain information on the JIT methodology and stock management in manufacturing firms. An explorative design combined with the descriptive, analytical, and longitudinal designs were employed. Literature was reviewed to collect relevant data. For critical analysis of the topic, primary data were sought from relevant sources through questionnaires and interviews plus a consultation of secondary sources like journals and the internet. The researcher found out that it is true that the JIT approach to inventory management has not succeeded much in Gourmet King Ltd due to low level of technological advancement in Uganda. The study also proved that to implement JIT successfully, businesses must have strong relationships with at least a relatively small number of suppliers. The study encountered some limitations such as failure to receive filled questionnaires back on time, time limitations plus limited literature and also recommends constant training of employees on new inventory management approaches to ensure efficiency and act as a motivational tool. Key words: Stock, Management, Firm, Just-in-time