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This document summarizes key aspects of Just in Time (JIT) inventory control techniques. It begins by defining inventory/material control and listing common techniques like ABC analysis and EOQ. It then contrasts JIT with other techniques, noting that JIT aims to directly use raw materials for production without storing them. The objectives, benefits, and disadvantages of JIT are outlined. Finally, an example is provided of Enkei Ltd, a wheel producer that operates efficiently on just 1 hectare through implementing JIT and never storing steel.

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Krushna Taur
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19 views8 pages

Cwa 4

This document summarizes key aspects of Just in Time (JIT) inventory control techniques. It begins by defining inventory/material control and listing common techniques like ABC analysis and EOQ. It then contrasts JIT with other techniques, noting that JIT aims to directly use raw materials for production without storing them. The objectives, benefits, and disadvantages of JIT are outlined. Finally, an example is provided of Enkei Ltd, a wheel producer that operates efficiently on just 1 hectare through implementing JIT and never storing steel.

Uploaded by

Krushna Taur
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Maharashtra Education Society’s,

Garware College of Commerce, Pune.

Name- Taur Krushna Balasaheb.


M.Com Part I (Sem.II)
Roll No. 9042
Subject- ADVANCED COST ACCOUNTING AND COST SYSTEMS-4.
Topic- Just In Time .
Subject Teacher- Capt.Dr.A.V. Giri.
Introduction
COST

Material Labour Expenses

Material is a major element of a cost. So material cost should be


controlled properly.
In material control we maintain quality and quantity but reduce cost
of material.
What is mean by inventory Control / Material control?

Inventory control

Proper Proper use Reduction in


recoding of of cost of
material material material

There are various techniques of inventory control like


 ABC analysis
 FSN analysis
 EOQ Model
 Stock level.
Just in Time (JIT) is also one of the inventory control technique.
What is difference between JIT and other control techniques?
Other inventory control techniques Just in Time (JIT)

Study of requirement Study of requirement


of Raw material. of Raw material.

Place order According Place order According


to the requirement. to the requirement.

Receive a Raw Receive a Raw


material. material.

Store a Raw material. Directly Use raw


material for
Issues a Raw material production.
as per production
requirement.
Objectives of Just in Time

 Reduce Material cost :- JIT is a inventory control technique. So


prime objective of JIT is reduce cost of material.
 Increase profit:- Ultimately objective of JIT is Increase profit.
 Avoiding wastage:- Avoiding wastage of Land, labour and material is
also objective of JIT.

Benefits of Just in Time

 Avoiding over stocking and under stocking


 Minimize wastage
 Getting material at reasonable prices
 Regular supply of material
Disadvantages of Just in Time

 Installation of JIT is very costly :- For applying JIT in practice an


expert team is required. That’s why installation of JIT is Costly.
 Time consuming :- In JIT technique management have to take
continuous feedback from supplier which is time consuming task.
Real industrial example of Just in Time (JIT).

There is a leading wheel producing company.

Enkei.Ltd(India) located in Sanswadi MIDC.

The main raw material for enkei.ltd is a steel.

They operate in just 1 hector just because of Just in Time


technique. They never store a steel they always used Just in Time.
THANK
YOU…

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