In: Accounting
Please explain about JIT: Just-In-Time production systems in 1000 words?
Structure your paper as follows:
Cover page
Overview describing the importance of the research topic in your own words
Purpose of Research of the article in your own words
Review of the Literature summarized in your own words
Conclusion in your own words
Personal Thoughts
References
Just in Time Production:
A just in time approach is a collection of ideas that streamline a
company’s production process activities to such an extent that
wastage of all kinds viz., of time, material, and labour
is systematically driven out of the process. JIT has a decisive,
positive impact on product costs.
“Just-in-time (JIT):A System whose objective is to produce or to
procure products or components as they are required by a customer
or for use, rather than for stock. Just-in-time system Pull system,
which responds to demand, in contrast to a push system, in which
stocks
act as buffers between the different elements of the system such as
purchasing, production and sales”.
“Just-in-time production: Production system which is driven by
demand for finished products, whereby each component on a
production line is produced only when needed for the next
stage”.
“Just-in-time purchasing: Purchasing system in which material
purchases are contracted so that the receipt and usage of material,
to the maximum extent possible, coincide”.
A JIT system comprises of a number of subcomponents, which are
discussed in this chapter.
A complete JIT system begins with production, includes deliveries
to a company’s production facilities, continues through the
manufacturing plant, and even includes the types of transactions
processed by the accounting system.
“Process that vastly reduces the amount of raw materials inventory
and improves the quality of received parts”
• To begin with, a company must ensure that it receives
products/spare parts/materials from its suppliers on the exact date
and at the exact time when they are needed. For this reason the
purchasing staff must investigate and evaluate every supplier,
eliminate those which could not keep up with the delivery
dates.
• In addition, deliveries should be sent straight to the production
floor for immediate use in manufactured products, so that there is
no time to inspect incoming parts for defects.
• Instead, the engineering staff must visit supplier sites and
examine their processes, not only to see if they can reliably ship
high-quality parts but also to provide them with engineering
assistance to bring them up to a higher standard of product.
• As soon as suppliers certify for their delivery and quality, the
concern must install a system, which may be as simplistic as a fax
machine or as advanced as an electronic data interchange system or
linked computer systems, that tells suppliers exactly how much of
which parts are to be sent to the company.
• Drivers then bring small deliveries of product to the company,
possibly going to the extreme of dropping them off at the specific
machines that will use them first.
So, JIT system aims at:
• Meeting customer demand in a timely manner
• Providing high quality products and
• Providing products at the lowest possible total cost.
The five main features of JIT production system:
• Organise production in manufacturing cells, a grouping of all the
different types of equipment used to make a given product.
Materials move from one machine to another where various operations
are performed in sequence. Material – handling cost are
reduced.
• Hire and retain workers who are multi-skilled so that they are
capable of performing a variety of operations, including repairs
and maintenance tasks. Thus, labour idle time gets reduced.
• Apply TQM to eliminate defects. As, there are tight link stages
in the production line, and minimum inventories at each stage,
defect arising in one stage can hamper the other stages. JIT
creates urgency for eliminating defects as quickly as
possible.
• Place emphasis on reducing set-up time which makes production in
smaller batches economical and reducing inventory levels. Thus
company can respond to customer demand faster.