JIT Manufacturing Systems: Use and Application in Australia

Reports the results of the first stage of a study which investigates the adoption of just‐in‐time (JIT) manufacturing systems and the design of appropriate accounting information systems (AIS). While almost all adopters report that JIT has provided benefits to their business, it is not clear that managers fully understand or are, as yet,capable of exploiting the full advantages of JIT. Identifies several factors which appear to be important in the successful implementation of JIT management systems in Australia, including the close geographic proximity of suppliers and customers, the existence of a highly competitive market, a broad product range, small to medium firm size,the existence of flexible manufacturing technology, large inventory holdings as a percentage of total assets, the use of JIT by dominant industry members (automobile manufacturers) and a low degree of vertical integration in the firm. Industry type is also an important factor.