The Role of Just in Time Procurement in Improving Organizational Performance: A Case of Tanzania Cigarette Company Limited
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirement for the
Degree of Masters of Business Administration in Corporate Management
(MBA-CM) of Mzumbe University.
The study examined the role of just in time procurement in improving organizational performance, a case of Tanzania Cigarette Company limited. With the following specific objectives, firstly to determine the effect just in time procurement on delivering time at TCC, second to determine the effect at JIT on operational cost at TCC and the last objective was to determine the effect of JIT on product quality at TCC The data for this study was collected using the documentation review and questionnaires. The collected information from the questionnaires was grouped and computed in SPSS version 23.0 for analysis and presentation of the gathered analytical data. The study findings indicates that JIT has facilitated delivery time as it help on the fast throughout, produced according to the forecast, reduce lead-time, no delays on goods ordered also another objective which was the JIT effect on operation cost find that it reduce on defect rate in manufacturing process, it lowers setup times of the equipment in the plant, it is lower cost procurement system, it improve operational excellence, it reduce overhead cost, easy moving of materials, low inventories and fast throughout. The last objective was to determine JIT and product quality and the study found that it rely on small number of high quality supplier, help on easy identification of goods and specifications and lastly found that JIT it only quality that is preferred. The study concludes that JIT philosophy if it is well applied it help on organization performance. In addition the study recommends that all manufacturer and service provider should use JIT for their organization performance and also their staff should be taken to the training for the good performance of the system. And for further study it’s the opinion of the researcher that the next study should focus on the comparative advantage of the JIT philosophy and other traditional procurement philosophies.
The study examined the role of just in time procurement in improving organizational performance, a case of Tanzania Cigarette Company limited. With the following specific objectives, firstly to determine the effect just in time procurement on delivering time at TCC, second to determine the effect at JIT on operational cost at TCC and the last objective was to determine the effect of JIT on product quality at TCC The data for this study was collected using the documentation review and questionnaires. The collected information from the questionnaires was grouped and computed in SPSS version 23.0 for analysis and presentation of the gathered analytical data. The study findings indicates that JIT has facilitated delivery time as it help on the fast throughout, produced according to the forecast, reduce lead-time, no delays on goods ordered also another objective which was the JIT effect on operation cost find that it reduce on defect rate in manufacturing process, it lowers setup times of the equipment in the plant, it is lower cost procurement system, it improve operational excellence, it reduce overhead cost, easy moving of materials, low inventories and fast throughout. The last objective was to determine JIT and product quality and the study found that it rely on small number of high quality supplier, help on easy identification of goods and specifications and lastly found that JIT it only quality that is preferred. The study concludes that JIT philosophy if it is well applied it help on organization performance. In addition the study recommends that all manufacturer and service provider should use JIT for their organization performance and also their staff should be taken to the training for the good performance of the system. And for further study it’s the opinion of the researcher that the next study should focus on the comparative advantage of the JIT philosophy and other traditional procurement philosophies.
Keywords
Just in Time, Procurement, Organizational Performance