minated by reducing batch sizes (preferably to just one).
2. Raw materials inventories are eliminated by requiring suppliers to deliver directly to the shop floor just in time for use in the manufacturing process.
3. Scrap and rework are eliminated by an emphasis on total quality control of design, of the manufacturing process, and of materials.
4. Finished goods inventories are eliminated by reducing lead times, so that, in effect, all products are made to order.
5. Materials handling costs are eliminated by redesign of the shop floor to permit materials to move directly between adjacent work centers.
JIT & Cost Accounting Procedural Changes
Major changes in cost accounting procedures for manufacturing firms are dictated in 10 separate areas by the introduction of JIT. These 10 areas are
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