Managerial accounting Essay Example | Topics and Well Written Essays - 1250 words

Managerial accounting - Essay ExampleFollowing which it will be discussed how the participation has implement this strategy in the day to day working.As mentioned earlier JIT was firstly introduced by Henry crossbreeding and was clearly described in his book My Life and Work in 1923. It was then that Henry traverse had realised that armory stocking was a waste of investments in terms of the amount locked up in forms of inventory as well as storage and transportation be.The JIT act upon is simple and defines stocking of goods to be a waste. Companies utilize this method follow the thumb rule of ordering for stocks whenever it is required by the company. This process exposes the hidden costs that the company incurs for storing and transporting of the inventories. The process might seem simple however when it comes to incorporating it into the daily business, the companies face a takings of issues as it would mean completely changing the process flow of the company. There are a get along of different disciplines that are followed to ensure the correct timing for ordering the goods to fit in correctly into the process flow of the company. This process involves aspects of statistics, behavioural science, production management and industrial engineering. In simple terms JIT is a process ensures that the inventories of a company are available at the veracious time, at the right place, the right amounts and finally the right materials (Sandras, 1989).Toyota is one of biggest motor company in the world. The company has been existent from times before the first ever air conditioner, colour television and even the first ever cheese burger was invented. It was started elbow room back in 1934, where the first engine was produced by the company. It was later in 1935 that the first car was produced. In 1937 the company was split off. The companys production was very limited between the years of 1936 -1945. The company however picked up motion in 1945 and the pro duction was seen to grow rapidly since then.