M. Tech. Business Administration / The study focuses on the implementation of "Just-In-Time" (JIT) at Sabertek. JIT is a system aimed at manufacturing and supplying only the goods needed, when needed, and in the exact quantities needed, instantaneously, with perfect quality and minimum waste. The implementation of JIT principles at a South African manufacturing firm was investigated. Various methods and results from previous JIT implementations are being discussed and an overview of the latest developments is given. This study further contains a survey on the susceptibility of a South African manufacturing firm to JIT implementation. The purpose of the study is to verify the financial impact on a company's performance through waste reduction by implementing the JIT principle. The focus of the study is to compare the profit derived from a company's production line and the decrease of waste in a JIT line, to that of a non - JIT line.

Setup time reduction Is an essential activity used to prepare the facility for just-in-time (JIT) manufacturing; the aim oZ which Is to assist In meeting the desirable manufacturing requirements of delivering low cost quality products on time. (20) The Japanese have shown that setup reduction eliminates the need for setup skills and producing In large or "economic" lot sizes. (1 ) It is usually the case that preparation and adjustments, which usually account for 95% of the setup time, can be externalised or eliminated. (1) The overall production process should be examined before setup times are reduced on existing equipment. (2) Considerations Include group technology, setup sequencing, dedicated machines identifying bottlenecks (stated by OPT) and the 80/20 rule. A training programme should be initiated where setup reduction teams, consisting of production operators, setters, foremen line supervisors and production engineers, are educated in JIT manufacturing, the changing business environment and recording and analysis methods. (31) A theoretical approach to setup reduction has been formulated by Shlgeo Shlngo. (1) During the preliminary stage Internal and external setup are not distinguished, therefore this stage involves a work/time study of the existing setup and activity categorisation. From this, potential externallsatlon or elimination of setup operations can be determined. The first stage of setup reduction involves separating internal and external operations. During this stage tooling organisation and pre-preperation activities are converted to external operations. The second stage of setup reduction involves converting internal to external setup. A simple Pareto analysis is conducted to determine time consuming activities, which are then tackled first. This stage includes equipment modification, standardisation of procedures, parallel operations and elimination of adjustments. The third stage involves streamlining setup operations by improving operations and initiating setup practise sessions. All ideas should be documented and implemented immediately. Setups should be kept in mind when buying new equipment, however it is usually more beneficial to modify existing equipment in-house. (4) Setup reduction costs are low at first for large time reductions, but costs become high yielding small returns during the final stages of the programme. (31) It may be beneficial to introduce an incentive scheme where members of setup teams receive recognition and a financial reward for implemented ideas. (34) A setup reduction programme was implemented at Viro Looks, the aim of which was to illustrate the theoretical approach to setup reduction. Setups were reduced here on a transfer machine by 67%, 60% time savings being achieved at low/no cost. A survey was performed involving 18 leading JIT companies, where it was found that the majority (14 companies) have initiated a setup reduction programme. However many of these companies have only limited experience in setup reduction and, according to the survey, require 4-6 years to reach the final stages of setup reduction.

On a daily basis organizations strive to achieve maximum output with minimum input for greater levels of efficiency and profitability. However, in our dynamic modern world and economy the variables have changed dramatically and the time when business was simply about the ‘bottom line’ and all else was subordinate to the objective of profit, has come and gone. In the contemporary world of business today the variables are much broader and more dynamic, as people are no longer just employees, and suppliers are no longer people whose payment should be delayed for as long as possible. In addition, the environment is no longer to be plundered at all costs. Today Lean as an all-encompassing management philosophy with its emphasis on adding value, is more relevant in business than at any other point in business history. At a time when the global economy is facing some of its greatest challenges, it is ultimately business and its networks that, through effective management, can restore the global economy and provide livelihoods to millions of people. The Lean management philosophy is about constantly searching for the best possible way of doing things and eliminating waste in pursuit of value. If Lean is in pursuit of eliminating waste and turning it into value, and the customer, irrespective of required product, is in constant pursuit of finding value, then Lean is surely the management philosophy that can deliver the greatest level of customer satisfaction. This means satisfied customers returning to an organization for repeat sales as long as they perceive that the value they derive meets their expectations.

The world has become more competitive, complex and unpredictable, and this process is continuing. Evolution is taking place resulting in organisations being pushed by strategies and pulled by increasingly assertive customers who demand more accountability and responsiveness (Kartte, 2010). In order to remain competitive in this changing world, many organisations, even financial institutions have adopted Lean principles in order to eliminate waste, reduce cost and streamline everyday processes (Spear, 2012). There have however been a number of challenges that have prevented financial institutions from implementing Lean principles successfully. The primary objective of this study is to improve the effectiveness of Lean principles within a specific financial institution. More specifically, this study will identify the effectiveness of successfully implementing Lean principles at a financial institution by investigating the influence of employee knowledge, understanding and skills, communication, motivation and ownership from management, organisational culture and the impact of trade unions in organisations as mentioned in the problem statement above. Convenience sampling was used to select a sample of sixty eight (68) employees within the specific financial institution. The sample was stratified to include senior managers, managers, team leaders and lower level employees. Questionnaires were distributed personally to the focus groups from the above categories.