Briefly explain just in time (JIT) technique.

Management Accounting Block Revision Mock Exams

Just in time (JIT) is defined as the constant pursuit for the elimination of waste. It has the aim of eliminating as far as possible all manufacturing and finished goods inventories. It does this by ensuring that nothing is made or processed that is not needed. Thus it is a demand pull manufacturing system. The implication for an organization using the JIT system involve total quality management, with a need to redesign plant layout, reschedule receipt of raw materials and the delivery of finished goods, as well as the redesign of the accounting system of the organization.

Leave a Reply

Your email address will not be published. Required fields are marked *