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i) Distinguish between back flash accounting system and just in time system
Just in time is an approach to operations planning an control base on the idea that goods services
should be produced only when they are needed and neither too early (so that inventories build up)
not too late (so that the customer has to wait). In words just in time is system
Back flash accounting system is a more simplified costing system for allocating costs between
inventories and cost of goods sold. The purpose of this is to eliminate detailed accounting
transactions. Rather than tracking the movement of materials through the production process a
back flash costing system focuses first on the output of the organization and then works
backward. When allocating cost between costs of goods sold and inventories with no separate
accounting for work in progress. Back flush costing is suitable for use in just in time environment.
Costs are attached to output only thereby simplifying the costing system.
ii) Features of Just in time
Pull Method of Materials Flow
Just-in-time systems utilize the pull method of materials flow. However, another popular method
is the push method
Consistently High Quality
Just-in-time systems seek to eliminate scrap and rework in order to achieve a uniform flow of
materials
Small Lot Sizes
Rather than building up a cushion of inventory, users of JIT systems maintain inventory with lot
sizes that are as small as possible
Uniform Workstation Loads
The JIT system works best if the daily load on individual workstations is relatively uniform.
Standardized Components and Work Methods
The standardization of components, called part commonality or modularity, increases repeatability
Close Supplier Ties
Because JIT systems operate with very low levels of inventory, close relationships with suppliers
are necessary
Flexible Work Force
Workers in flexible work forces can be trained to perform more than one job.
Line Flow Strategy
A line flow strategy can reduce the frequency of setups. If volumes of specific products are large
enough, groups of machines and workers can be organized into a product layout to eliminate
setups entirely
Automated Production
Automation plays a big role in JIT systems and is a key to low-cost production. Sakichi Toyoda,
the founder of Toyota, once said, "Whenever there is money, invest it into machinery.
Preventive Maintenance
Because JIT emphasizes finely tuned mows of materials and little buffer inventory between
workstations, unplanned machine downtime can be disruptive. Preventive maintenance can reduce
the frequency and duration of machine downtime.
marto answered the question on February 15, 2019 at 11:10
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