An integral part of the success of any organization rests upon its ability to implement an effective financial and accounting process. In an effort to provide readers with an example of an effective financial/accounting process, Team A has developed this report focused around a process known as the "Just-In-Time" (JIT) process. This paper will analyze the JIT production system in which the production and movement of goods are expedited in a more efficient method, while effectively improving upon the financial/accounting process of the organization. This paper will cover various issues pertaining to the JIT process, providing readers with an increased awareness of how the JIT process affects the financial/accounting process of an organization.
Definition and History of Just-In-Time Inventory
While researching an accounting and finance topic, team A collaborated many ideas about just-in-time inventory. This topic was chosen because of its reality in the ever-changing business world. Just-in-time inventory is a system in which a company schedules production just in time to satisfy needs.
Materials are purchased and finished goods are completed only as needed to satisfy customer demand. (Financial Analysis for Managers II) It can be grasped conceptually as for everything happens just in time. Let us explore a journey to Laker's game: I left my house just in time to get a bus to the airport, just in time to catch the plane, just in time to arrive at Staples center, just in time to get into the auditorium, just in time to catch the games tip off. (http://mscmga.ms.ic.ac.uk/jeb/or/jit.html) This concept is also known as a technique/philosophy way of working or a lean production system.
This concept of JIT began in Japan. It is usually associated with the Toyota motor company. This was originally known as the "Toyota Production System".
This way of doing business was completely...