StudentShare solutions
Triangle menu

The FINANCIAL implications / impacts of JIT implementation - Essay Example

Not dowloaded yet

Extract of sample
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 concept of JIT reveals access of major goals within the limited time frame so as to save the time and cost. In a manufacturing business, companies interact with JIT and avail advantages of time and cost saving. The implementation of JIT may vary upon the nature of operations that are performed by the enterprise.
There can be two applications of JIT to manufacturing operations. Many operations involve arrival of direct materials just in time when the manufacturing process is ready. Secondly; it can be applied to the completion of manufacturing process within the time frame so as to ship finished goods to the market. The technique is widely accepted for the advantages it offers to the manufacturing enterprises. A company that runs a manufacturing business needs to complete the order of specific goods. Using JIT, it can avoid the need of a finished goods Inventory account or subsidiary ledger. When the order is fulfilled the goods are directly marketed to cost of goods sold avoiding their entry to work in process inventory account. It may reduce the requirement for materials inventory records as well as those for finished goods. Purchase of material may be debited directly to the work in process inventory account and cost of finished goods may be debited directly to the cost of goods sold. In short, the introduction of JIT brings simplification to the accounting process. It also offers other advantages .The most significant benefit is that the company does not have to tie up money in large inventories of direct materials and finished goods. Also the company doesn't need to maintain storage facilities for these inventories. These inventories are not only costly to maintain but increase cycle time and inhibit the detection of defective parts. The JIT guides to an easy access to manufacturing operations. This include acquiring of material just in time for production, and then advancing to next stage just in time and the process goes on till the final stage for shipment to customers. All operations are fulfilled just in time and a lot of time as well as money is saved .This saving can utilize for other purposes and thus the extra time and money wasted in traditional methods are saved. The JIT signifies the value added activities and overwhelms all other unnecessary operations that are of trivial importance and time consuming.
The JIT Technique has converted the traditional slow and idle process of manufacturing to highly efficient and cheaper process. It has transform activity in the industrial process. Where JIT has been introduced, these changes are apparent in the sense that there is a huge increase of quality product. It has disengaged all non-value-added costs, such as defective materials, in-process inventories, and delays which were the characteristics of traditional system. The production cycle time has changed to minutes instead to hours or days in traditional process Even the quality of ...Show more

Summary

All financial statements are the instruments for judging the position of a business enterprise. Thus a financial statement reveals a great deal of insight to financial condition of the business enterprise. Business executives and managers need this financial information to help them plan and control their activities in running business…
Author : bbradtke
The FINANCIAL implications / impacts of JIT implementation essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The FINANCIAL implications / impacts of JIT implementation"
with a personal 20% discount.
Grab the best paper

Related Essays

Outsourcing implications and impacts
However,throughout the outsourcing procedure,it is essential for the company to clearly explain its particular organisational requirements,select the exact suppliers,administer the change process efficiently,manage the outsourcing relationship with suppliers effectively,and simultaneously build up a continuing affiliation with the supplier
6 pages (1500 words) Essay
JIT variability
Closely allied to Lean Production methods, the aim of JIT production is to offer value to the customer, when it is wanted and with very little waste. Variability in the context of JIT systems is 'deviation from optimum'. As a result of variability quality and efficiency of the production process gets reduced.
2 pages (500 words) Essay
Home buying process and its financial impacts
While selecting a house which an individual wants to buy he/she takes into consideration the apartment or the house first and then the individual also takes a look at the residential area in which he plans to dwell.
3 pages (750 words) Essay
Financial crisis impacts on progress of employees
These have caused many institutions and individual to associate the late 2000’s financial crisis to the financial misfortunes they are currently facing. At this point we need to obtain a clear understanding of this phenomena, financial crisis can simply be used to refer to situation where an underlying financial asset or a financial institution losses much of it value thus resulting into for such institution or the investor current holding on the financial asset ( Lansky,2010).
6 pages (1500 words) Essay
Financial Crisis Impacts on Progress of Employees
The latest financial crisis was the most severe, even though the costs associated with the crisis have not yet be evaluated, led to major changes in the financial landscape. Therefore, there is a need to review the underlying literature developed by various scholars on financial crisis.
5 pages (1250 words) Essay
Global Financial Crises: Differences, Impacts and Implications
The 1930 great depression was caused by isolated events such as weather, government policies and events such as the black Tuesday (Chossudovsky and Marshall, 2010). The black Tuesday was in October 29, 1929. On this day, the stock market collapsed and two months after the collapse stakeholders in the market had lost over $40 billion (Chossudovsky and Marshall, 2010).
4 pages (1000 words) Essay
OPERATIONS & FINANCIAL DECISION MANAGEMENT
There are three aspects of inventory and they are: Stock of Raw Materials, Stock of Work-in-Progress and finally stock of Finished goods. There are certain aspects characteristic, to Cameron Balloons
10 pages (2500 words) Essay
JIT variability
As a result of variability quality and efficiency of the production process gets reduced. Variabilities in production and distribution systems are those unexpected occurrences that upset or alter pre-planned
2 pages (500 words) Essay
Just in Time (JIT)
The study has shown that the strategy has been successful in Japan. The study has also shown that various fundamental techniques like
10 pages (2500 words) Essay
Jit &toyota
Management consists of rational assessment of different practical situations and systematic choice of tasks, detailed elaboration of strategies for goals achievement, distribution of resources, rational design, organization, direction, coordination, and
5 pages (1250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation