Management And Accounting Web

DeLuzio, M. C. 1993. The tools of just-in-time. Journal of Cost Management (Summer): 13-20.

Summary by Mary Anne Browne
Master of Accountancy Program
University of South Florida, Fall 2000

JIT Main Page | Japanese Management Main Page | Continuous Improvement Main Page

JIT definition - A philosophy of supplying a product that is needed, when it is needed, and in the quantity that is needed.

Tools, Descriptions, and Advantages:

Kaizen - Continuous improvement - Basis for the JIT philosophy.

Cellular Work Flows - Mowing operations together for efficiency - Eliminates wasteful transportation. Parts are started and finished in the same cell. Facilitates one-piece flow productions and visual control is enhanced.

One-Piece Flow Production - Parts are produced in batches of one - Defective parts are limited as well as inventory and WIP. Exposes waste, and Real-time feedback from processes.

Standard Work Concepts - Every process must have a standard procedure, takt time*, and standard WIP. Provides the foundation for future improvements. Work procedures eliminate second-guessing. Standard WIP provides for continuous flow of work.

The 7 Wastes - Waste arising from overproducing, waiting, transporting, processing, unnecessary stock, unnecessary motion, and producing defective goods. Recognition of waste is critical to improvement.

Make it Ugly - Bringing problems to everyone’s attention by visually displaying them. Example: inventory that is "in the way" instead of in the warehouse. - Reduces the "out of sight, out of mind" mentality.

"Just Do It" - Doing and improving rather than "overplanning". Focus on continuous improvement. Eliminate the waste of too much planning.

The 5 Ss - Concepts of neatness, orderliness, cleanliness, and work -place discipline. Seiri, Seiton, Seiso, Seiketsu, Shitsuke. - Visual control is enhanced. Provides the foundation for future improvements.

Kanban Inventory - A card system that describes inventory instructions. Example: In Supermarket stocking a void on the shelf is a signal to the clerk to replenish the stock. - Facilitates production of the necessary parts only.

Visual Control - Clear, visual control instead of explanation. Examples: Methods of parts storage and production status scoreboards. - Signals shortages. Highlights idle workers and other wastes. Management can focus on the abnormal and eliminate detailed reporting.

Single-minute Exchange of Die - Concentration on opportunities to eliminate waste in setup and changeover. Convert internal setup (stop machine to setup) to external setup. - Setup waste is targeted.

Poke yoke - Design self-checking elements in production processes. Make processes "foolproof". - Enhances the goal of quality at the source.

The "Five Whys" - An approach to change problems into opportunities for improvement. Ask "why?" 5 times. (Examples). - Focuses on the root cause of problems and views problems as raw materials for improvement.

*Takt time is the time available to make a product divided by the sold units. Takt time is required to meet customer demands. (See the Womack & Jones and Toyota Production System summaries for more on takt time).

Conclusion: JIT tools do not work alone; they work together to enhance each other.


Related summaries:

Baggaley, B. and B. Maskell. 2003. Value stream management for lean companies, Part I. Journal of Cost Management (March/April): 23-27. (Summary).

Baggaley, B. and B. Maskell. 2003. Value stream management for lean companies, Part II. Journal of Cost Management (May/June): 24-30. (Summary).

Borthick, A. F., P. L. Bowen, and M. C. Sullivan. 1998. Controlling JIT II: Making the system monitor itself. Journal of Cost Management (July/August): 33-41. (Summary).

Carr, L. P. and C. D. Ittner. 1992. Measuring the cost of ownership. Journal of Cost Management (Fall): 42-51. (Summary).

Carr, L. P., W. C. Lawler and J. K. Shank. 2002. Reconfiguring the value chain: Levi's personal pair. Journal of Cost Management (November/December): 9-17. (Summary).

Castellano, J. F. and R. Burrows. 2011. Relevance lost: The practice/classroom gap. Management Accounting Quarterly (Winter): 41-48. (Summary).

Clinton, B. D., and H. Ko-Cheng. 1997. JIT and the balanced scorecard: Linking manufacturing control to management control. Management Accounting (September): 18-24. (Summary).

Crusoe, J., G. Schmelzle, and T. E. Buttross. 1999. The hidden costs of adopting JIT manufacturing. Journal of Cost Management (December): 23-26. (Summary).

Davenport, T. H. and J. Glaser. 2002. Just-in-time delivery comes to knowledge management. Harvard Business Review (July): 107-111. (Summary).

Deluzio, M. C. 1993. Management accounting in a just-in-time environment. Journal of Cost Management (Winter): 6-15. (Summary).

Foster, G. and C. T. Horngren. 1987. Cost accounting and cost management in a JIT environment. Management Accounting (June): 19-25. (Summary).

Fullerton, R. R. 2003. Performance measurement and reward systems in JIT and non-JIT firms. Cost Management (November/December): 40-47. (Summary).

Fullerton, R. R. and C. S. McWatters. 2002. The role of performance measures and incentive systems in relation to the degree of JIT implementation. Accounting, Organizations and Society 27(8): 711-735. (Summary).

Kalagnanam, S. S. and R. M. Lindsay. 1998. The use of organic models of control in JIT firms: Generalising Woodward's findings to modern manufacturing practices. Accounting, Organizations and Society 24(1): 1-30. (Summary).

Kapanowski, G. 2016. Lean fundamentals for accountants. Cost Management (January/February): 5-14. (Summary).

Lee, J. Y. and J. K. Winch. 1998. From push to pull: Management's control system modification for manufacturing change. Advances in Management Accounting (6): 75-92. (Summary).

Lessner, J. 1989. Performance measurement in a just-in-time environment: Can traditional performance measurements still be used? Journal of Cost Management (Fall): 23-28. (Summary).

Martin, J. R. Not dated. Chapter 8: Just-In-Time, Theory of Constraints, and Activity Based Management Concepts and Techniques. Management Accounting: Concepts, Techniques & Controversial Issues. Management And Accounting Web.

Martin, J. R. Not dated. Five Whys examples. Management And Accounting Web.

Martin, J. R. Not dated. Lean concepts and terms. Management And Accounting Web.

Martin, J. R. Not dated. Profit Beyond Measure graphics and notes. Management And Accounting Web.

Martin, J. R. Not dated. What is lean accounting? Management And Accounting Web.

McIlhattan, R. D. 1987. How cost management systems can support the JIT philosophy. Management Accounting (September): 20-26. (Summary).

O'Brien, J. and K. Sivaramakrishnan. 1994. Accounting for JIT: A cycle time-based approach. Journal of Cost Management (Fall): 63-70. (Summary).

Patell, J. M. 1987. Adapting a Cost accounting system to just-in-time manufacturing: The Hewlett-Packard Personal Office Computer Division. Accounting & Management Field Study Perspectives, edited by William J. Bruns, Jr. and R. S. Kaplan. Harvard Business School Press: 229-267. (Summary).

Pickering, M. 2017. Implementing lean management reporting in lean enterprises. Cost Management (January/February): 28-36. (Summary).

Swenson, D. W. and J. Cassidy. 1993. The effect of JIT on management accounting. Journal of Cost Management (Spring): 39-47. (Summary).

Toyota Public Affairs Division and Operations Management Consulting Division. 1998. The Toyota Production System: Leaner Manufacturing for a Greener Planet. The Toyota Motor Corporation. (Summary).

Vollmann, T. 1990. Changing manufacturing performance measurements. Proceedings of the Third Annual Management Accounting Symposium. Sarasota: American Accounting Association: 53-62. (Summary).

Womack, J. P. and D. T. Jones. 1994. From lean production to the lean enterprise. Harvard Business Review (March-April): 93-103. (Summary).

Womack, J. P. and D. T. Jones. 1996. Beyond Toyota: How to root out waste and pursue perfection. Harvard Business Review (September-October): 140-144, 146, 148-152, 154, 156, 158. (Summary).