Critical assessment and measurement of costs involved in the operation Essay

Critical assessment and measurement of costs involved in the operation of JIT policy - Essay Example In this report, we will try to identify the hidden costs of implementing JIT system and assign monetary value to them. The purpose of this report is not to reject the effectiveness of JIT, but to evaluate the exact benefit derived from this system and whether the effectiveness of this system will be universal for all business concerns or not. 90% of this work is original and is based on primary research in form of Focus Group, Interviews. The deductions, implications and examples quoted are original. References are used only for definitions and the various components for the JIT theory. Survey Research Method: The second method used is the Survey Research method, which according to Kotler "Surveys are best suited for descriptive research". In our case, the survey comprised of a sample of Production/Operations Managers in different industries. At present, almost all management schools of thought are in favour of JIT system. Due to the success of its implementation in Toyota Motors and Japanese companies the tendency of all Production/operations managers is towards implementing JIT. In this regard, a paper retrieved on 20th December 2007 from www.wikepedia.com was particularly useful resource material since it gave insight onto the problems built into the JIT system and problems faced with implementation of the JIT system. In the "Critical Assessment of JIT, costs associated with JIT" section of this report, some points are included form the work on www.wikipedia.com/critical assessment of JIT. The second most useful secondary Internet resource material was collected from www.1000ventures.com. This gave a detailed insight into the components of JIT. These components are included in table form in this report. The detailed knowledge of these components has given me an insight into what can be the cost components or hitches in implementing and practicing JIT. Other than this,