JIT Manufacturing And Inventory Control System Essay

J.I.T. Manufacturing And Inventory Control System Essay, Research Paper

Since the morning of human being development in all sectors of society has occurred due to Economic factors. This has chiefly happened due to the fact that all technological accomplishments have occurred in favour of money. Specifically we can acknowledge that Economy is the chief ground for growing and development. By these agencies it is in our involvement to set up strong economic systems either as societies ( macroeconomics ) or as persons ( microeconomics ) . For these grounds several techniques and methods have been initiated in order aid modern persons to develop. Such techniques are normally Accounting or Managerial in their nature. However one of the most of import technique is both an Accounting and a Managerial technique and is called & # 8220 ; The merely in clip method & # 8221 ; .

Merely in clip fabrication & # 8220 ; was an stock list control attack that was developed by Taiichi Ohno at Toyota Motor Company of Japan. Specifically it requires that & # 8220 ; the exact measure of defect-free natural stuffs, parts and subassemblies are produced merely in clip for the following phase of the fabrication phase & # 8221 ; ( Ivancevich-Lorenzi-Skinner, p 427 ) . That really means an stock list is ne’er big and by this manner cost is being reduced due to the fact that there are no losingss of stuffs due to bad demand or spoilt. This method is wholly a demand & # 8211 ; driven procedure since stock list value represents the exact value of natural stuffs, parts or subassemblies that must be spent to fulfill orders that have already taken topographic point. By these means the company is ne’er overstocked and that has as an affect that the company will ne’er hold a liquidness job since assets as stock

of goods are smaller and hard currency is bigger. Another ground for this to go on is the fact that Just in clip fabrication “is a doctrine of extinguishing non value added activities and increasing merchandise quality throughout the fabrication process” ( Meigs, Bettner, p. 804 ) .

But how can we command if our Just in clip fabrication system is efficient? The reply to that is given by Meigs and Bettner: & # 8220 ; A widely used step of efficiency in a Just in clip system is the Manufacturing Efficiency ratio & # 8221 ; ( p. 805 ) . This ratio is given by the Value Added Activities clip over the Cycle clip. The rhythm clip is the clip of processing, hive awaying, traveling and inspecting that is spent on the stuff before their use. If the ratio is equal to one so we have the perfect Manufacturing efficiency ratio. This means that the smaller the figure the less efficient is our Just in Time fabrication method and the larger are the Value added activities.

Finally we can reason that if we perform the Just in Time fabricating the right manner we diminish cost and that is the ideal instance for every company of bring forthing nature. Toyota one time once more initiated a radical technique on the field of Management that was widely copied by many companies around the universe.

Bibliography

? Lorenzi, Peter, Skinner, Steven J. , Ivancevich, John M. :

& # 8220 ; Management Quality And Competitiveness & # 8221 ; . Irwin McGraw-Hill ( 1997 ) .

? Williams, Meigs, Bettner, Haka: & # 8220 ; Accounting The Basis For Business Decisions & # 8221 ; . Irwin McGraw-Hill ( 1999 ) .

? Garrison, Noreen: & # 8220 ; Managerial Accounting: Concepts For Planning, Control And Decision Making & # 8221 ; . Irwin McGraw-Hill ( 1997 ) .