Financial Justification of JIT Implementation

Abstract

Many articles have appeared which detail the improvements appearing in manufacturing firms subsequent to JIT implementation. Some firms have attributed the complete financial turnaround of their company to the philosophy. However, this assumes that no other variables contributed to the improvements made. Presents the results of a survey of American manufacturing firms which have implemented JIT. In addition to merely presenting the benefits accrued, an effort is made to correlate these benefits with actual improvements in ROI, total costs and service level. Shows JIT as contributing significantly to the financial status of manufacturing firms.