Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed


JIT production, operating efficiency



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21.23 JIT production, operating efficiency.
(30 min) This problem is based on an actual situation fora German company.


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
1
The key features of JIT production are
a
Production is organised in manufacturing cells.
b
Workers are trained to be multiskilled so that they are capable of performing a variety of operations and tasks.
c
Total quality management is aggressively pursued to eliminate defects.
d
Emphasis is placed on reducing setup time and manufacturing lead time.
e
Suppliers are carefully selected to obtain delivery of quality-tested parts in a timely manner.

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