A review of the adoption of just-in-time method and its effect on efficiency

The just-in-time (JIT) process has been around for many years, and it has successfully been implemented by many Japanese companies. Some companies in the United States (U.S.) presently use JIT ideas and techniques in their operations. JIT is more of a philosophy than an actual process. The JIT philosophy emphasizes the performance of activities based on immediate need or demand. JIT has primarily been used in the manufacturing area, but it may also be broadly viewed as a procedure for helping companies manage and reduce their total processing times. This paper will discuss the JIT process mainly as it applies to the manufacturing industry. First, the applications of JIT techniques will be examined, focusing primarily on the Kanban system developed by the Japanese. Secondly, examples of several U.S. companies using JIT procedures will be described, along with some of the changes they have made in adapting to this new environment. Next, the cost accounting implications associated with JIT will be discussed focusing on how information required by management, may or may not change, under a JIT environment. Finally, the advantages and disadvantages of JIT will be examined, and conclusions will be reached regarding its future applications in the U.S.