Implications of implementing just-in-time systems

Abstract

Just-in-time (JIT) systems are simple and generally require little use of computers, and they appear to provide for tighter controls on inventory than are attainable via U.S. computer-based approaches. JIT promotes major improvements in quality and productivity, as well as increased worker responsibility and commitment. It is not just a way to reduce inventory, it is a means of solving problems that block the building of an excellent manufacturing organization. Its applications and benefits apply not only to the shop floor but also to the marketing, purchasing and accounting aspects. The purpose of this paper is (i) to examine the application of a JIT system, (ii) to evaluate the benefits and costs of implementing JIT, (iii) to understand how JIT implementation affects marketing and accounting functions, and (iv) to explore the management implications of implementing JIT in organizations.