Just in Time Purchasing
| Just In Time Purchasing | Prepared for: | Pn. Norlia Binti Karim | | Prepaid by: | | | Ahmad Farhan Bin Yaakop | 1233009 | | | Muhammad Zafri Bin Othman | 1233011 | | | Muhammad Taqi’uddin Bin Mohd Hamzah Murghayah | 1233019 | | Managerial AccountingDMAN 3103 | Diploma in Islamic Banking | Session 1 2013/2014 |
Table of Contents Table of Contents 1 1.0. Introduction Just In Time (JIT) Management 2 2.0. Basic Features if JIT 3 2.1. Plant Layout 3 2.2. Grouping and Empowerment of Employees 3 2.3. Total Quality Control 4 2.4. Traceability of Overhead Costs 4 2.5. Inventory Effect 5 3.0. Setup and Carrying Cost: The JIT Approach 6 4.0. Due Date Performance: The JIT Solution 7 4.1. Long-Term Contract 7 4.1.1. Continuous Replenishment 7 4.1.2. Electronic Data Interchange (EDI) 7 4.1.3. JIT II 8 4.2. Reducing Setup Times 9 5.0. Avoidance of Shutdown and Process Reliability: The JIT Approach 9 5.1. Total Preventive Maintenance 9 5.2. Total Quality Control 10 5.3. The Kanban System 10 6.0. Discount and Price Increases: JIT Purchasing versus Holding Inventories 11 7.0. JIT’s Limitation 11 8.0. Conclusion 13 Bibliography 14
1.0. Introduction Just In Time (JIT) Management
The manufacturing environment for many of these traditional, large-batch, high setup cost firms has changed dramatically in the past 10 to 20 years. For one thing, the competitive markets are no longer defined by national boundaries. Advances in transportation and communication have contributed significantly to the creation of global competition. Advances in technology have contributed to shorter life cycles for products, and product diversity has increased. Foreign firms offering higher-quality, low-cost products with specialized features have created tremendous pressures for our domestic large-batch, high setup cost firms to increase both quality and product diversity while simultaneously reducing
Table of Contents Table of Contents 1 1.0. Introduction Just In Time (JIT) Management 2 2.0. Basic Features if JIT 3 2.1. Plant Layout 3 2.2. Grouping and Empowerment of Employees 3 2.3. Total Quality Control 4 2.4. Traceability of Overhead Costs 4 2.5. Inventory Effect 5 3.0. Setup and Carrying Cost: The JIT Approach 6 4.0. Due Date Performance: The JIT Solution 7 4.1. Long-Term Contract 7 4.1.1. Continuous Replenishment 7 4.1.2. Electronic Data Interchange (EDI) 7 4.1.3. JIT II 8 4.2. Reducing Setup Times 9 5.0. Avoidance of Shutdown and Process Reliability: The JIT Approach 9 5.1. Total Preventive Maintenance 9 5.2. Total Quality Control 10 5.3. The Kanban System 10 6.0. Discount and Price Increases: JIT Purchasing versus Holding Inventories 11 7.0. JIT’s Limitation 11 8.0. Conclusion 13 Bibliography 14
1.0. Introduction Just In Time (JIT) Management
The manufacturing environment for many of these traditional, large-batch, high setup cost firms has changed dramatically in the past 10 to 20 years. For one thing, the competitive markets are no longer defined by national boundaries. Advances in transportation and communication have contributed significantly to the creation of global competition. Advances in technology have contributed to shorter life cycles for products, and product diversity has increased. Foreign firms offering higher-quality, low-cost products with specialized features have created tremendous pressures for our domestic large-batch, high setup cost firms to increase both quality and product diversity while simultaneously reducing
Bibliography: Don. R Hansen and Maryanne M. Mowen. (2005). Management Accounting. United States of America: Thomson South Western. Gene Schwind. (1984). Man Arrives Just-In-Time to Save Harley Davidson. Material Handling Engineering , 28-35. Jackson, Sayyer. (2008). Managerial Accounting 4e. A focus On Ethical Decision Making. Canada: Thomson South Western. John McClenahen and Jill Jusco. (2001, May 7). JIT Inventory Systems Hold Appreal. Industry Week , 250 (7), pp. 11-13. Ken Vollmer. (2001, July 23). The Internet Will Determine the Future of EDI. Internet Week , 23-27. Michael Hammer and James Champy. (1993). Reenginering the Corporation. New york: HarperBusiness. Ray H. Garrison, Eric W. Noreen. (1997). Manegerial Accounting. USA: Irwi- McGraw Hill. Ronald W. Hilton. (2001). Manegerial Accounting. New York: McGraw Hill.