International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (622-628), Month: October 2019 - March 2020, Available at: www.researchpublish.com
JUST-IN-TIME (JIT) PRODUCTION SYSTEM OPERATIONALIZATION AND RELIABILITY OF MANUFACTURING TECHNOLOGY IN NIGERIA 1 1
AKPOTU, Chris Ph.D, 2ATAGBORO, Emmanuel
Department of Business Administration, Management Sciences, Niger Delta University, Amassoma, Bayelsa State 2
Department of Accountancy, Management Sciences, Niger Delta University, Amassoma, Bayelsa State
Abstract: This paper examined Just-in-Time (JIT), operationalization and reliability of manufacturing technology amongst SMEs in selected rural community in South-South in Nigeria. The questionnaire was the major instrument for data collection. The data obtained from a sample of 525 respondents were subjected to both descriptive (mean and standard deviation) and inferential statistics (Ordinary Least Square). JIT was proxied by three dynamics such as actual production time, actual machine time and order accuracy. The results indicate that actual production time, actual machine time and order accuracy positively impact on operationalization and reliability of manufacturing technology and is statistically significant. From the findings, it was concluded that JIT system shapers reliability. On this note, it was recommended among others that manufacturing concerns should deploy JIT in their manufacturing processes, as it will ensure reliability of manufacturing technology. Keywords: Just-in-Time, Manufacturing, Discounted Cash Flow, International Accounting Standard, Statement of Accounting Standard.
1. INTRODUCTION In manufacturing concerns, the most fundamental objective is to produce goods and render services that are of high quality to consumers, notably at the right time and lowered possible costs by way of satisfying consumers’ needs and actualizing economic benefit of the producing firm. Actualizing economic benefit of manufacturing concerns result to producing goods/services at the minimum cost in order to maximize shareholders wealth. There are different approaches to the measure or appraisal of the wealth of the stakeholders, and this includes traditional and modern (Discounted Cash flow) approaches. The means of arriving at the different components that will facilitate the determination of the stakeholders’ wealth are enormous especially as it relates with preparation of the organisations income statement and statement of financial position. These statements will be obtained after thorough valuation of the firm’s inventory conventionally and other means in accordance with Financial Reporting Standards (FRS) of Nigeria generally known as Statement of Accounting Standards (SAS) and International Accounting Standards (IAS). Traditionally, accounting profits are used to determine whether a particular investment is viable or not and on the other hand, the viability is determined by calculating the payback period without considering the time value of the cash flows. In this case, the returns from the investment are compared to the outlay and other running cost to determine the period the returns payback. With the modern approach, the time value is strictly considered by discounting the cash flows to determine the Net Present Value (which is the stakeholders’ wealth). Shareholders wealth maximization is one of the fundamental measures of optimum performance; hence, management tries to maximize shareholders wealth of manufacturing concerns by engaging in effective inventory system. The questions are, whether the companies’ inventory is properly managed. If properly managed, what methods are applied? Is it the traditional management accounting techniques or the modern techniques? If the modern management accounting systems are applied, are they the advanced manufacturing technologies? If they are adopted, are they operational and reliable in the Nigerian context? These questions provide the focus for this inquiry.
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