JITs - JUST-IN-TIME SYSTEMS Just-in-time(JIT has the...

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JUST-IN-TIME SYSTEMS Just-in-time (JIT) has the elements of a philosophy as well as various practice elements. While the JIT philosophy is applicable to any type of organization, the practice elements apply mainly to repetitive manufacturing operations such as the production and assembly of automobiles or appliances. Although the term Just-in-time (JIT) can be defined narrowly as a production or inventory scheduling technique, it is more frequently defined as a very broad philosophy that incorporates many of the concepts of communitarian capitalism that are outlined in Chapter 1. JIT is more appropriately thought of as a philosophy because, even though it includes a variety of techniques, it is much more than a collection of management practices. There is considerable support for the argument that successful implementation of a JIT system requires an entirely different mentality, or attitude, on the part of management and workers than the typical attitudes underlying traditional business practices and relationships. Although a precise, or operational definition of JIT has not been developed, it basically involves the elimination of waste and excess by acquiring resources and performing activities only as they are needed by customers at the next stage in the process. For example, inventory buffers are viewed as an evil in that they hide problems such as defective parts, production bottlenecks, long machine set-ups and competitive behavior within the company. A more comprehensive definition of JIT can be developed by considering the main elements that are attributed to successful JIT systems. These elements can be separated into two broad categories including attitude and practice. While the elements of attitude can be adopted by any organization, the elements of practice are mainly applicable to companies involved in repetitive manufacturing. From an accounting viewpoint, these are companies that would normally use the process cost accumulation method. A JIT system requires an attitude that places emphasis on the following: 1. Cooperation with a value chain perspective, 2. Respect for people at all levels, 3. Quality at the source, 4. Simplification or just enough resources, 5. Continuous improvement and 6. A long term perspective.
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