Critical assessment and measurement of costs involved in the operation of JIT policy

College
Essay
Miscellaneous
Pages 23 (5773 words)
Download 0
JIT is a management theory of the1950's era which created a hype in the business circles and even after so many years, has managed to retain the ado and is the ultimate aim of all business concerns to achieve JIT in their production and inventory management systems…

Introduction

In this report, we will try to identify the hidden costs of implementing JIT system and assign monetary value to them.
The purpose of this report is not to reject the effectiveness of JIT, but to evaluate the exact benefit derived from this system and whether the effectiveness of this system will be universal for all business concerns or not.
90% of this work is original and is based on primary research in form of Focus Group, Interviews. The deductions, implications and examples quoted are original. References are used only for definitions and the various components for the JIT theory.
Survey Research Method: The second method used is the Survey Research method, which according to Kotler "Surveys are best suited for descriptive research". In our case, the survey comprised of a sample of Production/Operations Managers in different industries.
At present, almost all management schools of thought are in favour of JIT system. Due to the success of its implementation in Toyota Motors and Japanese companies the tendency of all Production/operations managers is towards implementing JIT.
In this regard, a paper retrieved on 20th December 2007 from www.wikepedia.com was particularly useful resource material since it gave insight onto the problems built into the JIT system and problems faced with imple ...
Download paper
Not exactly what you need?

Related papers

Critical assessment and measurement of costs involved in the operation of JIT policy
In this report, we will try to identify the hidden costs of implementing JIT system and assign monetary value to them.…
The FINANCIAL implications / impacts of JIT implementation
Planning for any business enterprise implies to different techniques which are helpful in running the business smoothly. In modern approach, there is special concern over saving the resources and JIT Technique is one of these approaches. JIT (Just-In-Time) is to schedule manufacturing activities in a manner to minimize or even eliminate inventories of direct material and finished goods. The…
Critical appraisal of article in operation management
It is due to this reason that the researchers and economist have carried out studies the study due to the significance and contribution of this industry in the country's annual GDP.…
OPERATION
At the same time, Deere also aligned its production processes with sales forecasts, supplier lead times, and customer demand for the products, which enabled the company to immediately respond to rapid changes in product demand and reduce the company's vulnerability to external factors that affect its profitability and operations. Similarly, Revlon's recent inventory restructuring initiative was…
International Human Resource
However, the nature of their work and the type of organization they work for will determine how these common environmental factors are perceived - whether they are seen as positive or negative, threats or opportunities…
OPERATION Essay
"Just in Time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs." (Wiki Encyclopedia, 2007). JIT is a division of Lean Manufacturing. It offers scope for reducing inventories and introducing ways and means to improve productivity by planning optimal use of resources by elimination of all activities…
Product Costs
a. What is the unit product cost for the month under variable costing? b. Prepare an income statement for the month using the contribution format and the variable costing method. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)