Skip to content

CMA Final · Strategic Cost Management · Just in Time (JIT)

A pump manufacturer in Coimbatore moves to a JIT system. Which of the following is the most characteristic feature of the new production approach?

JIT works as a pull system in which production is triggered by downstream demand, so goods are made only when required. Large batches, buffer stocks and departmental machine grouping belong to traditional push production, which JIT replaces with small lots and cellular layouts.

  1. AProducing in large batches to spread set-up cost over more units
  2. BHolding buffer stock of raw materials to protect against supplier delays
  3. CPulling production through the plant only when downstream demand signals itCorrect
  4. DGrouping similar machines in separate departments to maximise utilisation

Explanation

JIT is a pull system: work is triggered by downstream demand, so items are produced only when needed. Large batches and buffer stocks are features of push systems with just-in-case inventory. Departmental grouping of machines is the traditional layout, whereas JIT uses cellular layouts.

Did you get it right without looking?

One question tells you little. A timed set on Just in Time (JIT) shows your real accuracy, how long you take and where you lose marks.

Practise Just in Time (JIT)Free diagnostic mock

More Just in Time (JIT) questions