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Critical assessment and measurement of costs involved in the operation of JIT policy - Essay Example
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…
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 ...