Jit purchasing-jit aims, Managerial Accounting

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JIT purchasing

On the other hand is a purchasing system in which material purchased are contracted so as that the receipt and usage of materials to the maximum extent possible, coincide.

JIT concept can be traced back to the Japanese company whose success in the international market generates interest among many western companies as to how this success was achieved.

The implementation of JIT production methods was considered to be pursuit of excellence in all phase of manufacturing systems design and operations.

The JIT are to produce the required items at the required quality and in the required quantities, at the precise time that they are required.

JIT seeks to achieve the following aims:

(1). Removal of non-value adding activities.
(2). Zero inventory
(3). Zero defects
(4). Batch magnitude of one.
(5). Zero break-downs
(6). 100% on time delivery services.

The above goals represent perfection and are most unlikely to be archived in practice. They do though offer targets and generate a climate for continuous progress and excellence.


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