Title: The impact of Just-in-Time on costing

Authors: A. Seetharaman, Jayashree Sreenivasan, Raghunathan Bathamenadan, Raju Sudha

Addresses: Faculty of Management, Multimedia University, 63100 Cyber Jaya, Malaysia. ' Faculty of Management, Multimedia University, 63100 Cyber Jaya, Malaysia. ' Faculty of Management, Multimedia University, 63100 Cyber Jaya, Malaysia. ' Faculty of Management, Multimedia University, 63100 Cyber Jaya, Malaysia

Abstract: Just-in-Time (JIT) manufacturing has received a great deal of attention worldwide ever since it was introduced in Japan a few decades ago. Its implementation has the ultimate purpose of waste reduction. The main benefits of JIT implementation are the reduction of inventories, lead-time reduction and cost savings. The study explores the impact of JIT manufacturing systems on financial accounting metrics, especially costing. The impact of JIT on a firm|s inventory and other areas, such as manufacturing efficiencies with respect to employee performance and other nonfinancial areas, are also discussed, with a special focus on Small and Medium Enterprises (SMEs).

Keywords: just-in-time; JIT manufacturing; JIT production; JIT implementation; quality; cost savings; small and medium-sized Enterprises; SMEs; JIT purchasing; waste reduction; inventory reduction; lead-time reduction; financial accounting; costing; manufacturing efficiency; employee performance.

DOI: 10.1504/IJMED.2007.014986

International Journal of Management and Enterprise Development, 2007 Vol.4 No.6, pp.635 - 651

Published online: 30 Aug 2007 *

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