Abstract

The study examines the effect of Just-in-time on the financial performance of manufacturing organizations in Nigeria. The purpose of the research work is to determine the effect of application of just in time on cost reduction and return on investment of manufacturing firms in Nigeria. Primary data were collected through a self administered questionnaire on knowledgeable sample of employees selected to test the strength of model specified and hypotheses formulated on JIT and financial performance of manufacturing firms. Analysis was carried out using Multiple Regression model and findings revealed that 39.4 and 16.3% variations in cost reduction and returns on investment are due to the impact of JIT as explained by the predictor variables combined. This implies that JIT has contributed positively to the financial performance of manufacturing firms in Nigeria and manufacturers will benefit immensely from its adaptation. The study concludes that each of the cost components employed to measure the effect of JIT on cost reduction and returns on company’s investment shows appreciable level of significance. The study therefore recommends the manufacturing firms should adopt JIT in cutting their production costs in order to achieve enhanced efficiency and eliminate waste to the barest minimum from the entire supply chain.

Key words: Just-in-time, financial performance, manufacturing, cost reduction.