Pasar Modal

Peran Profesi Akuntan di Pasar Modal

Bima Cinintya Pratama
C4C013019




PPAK
Fakultas Ekonomi dan Bisnis
Universitas Jenderal Soedirman
2014
PENDAHULUAN

I. Background
The Emergence of JIT
Today, the market is characterized by the increasing of products that consumers want
and decreasing the life cycles of a product. This condition requires a new production strategy,
because the old strategy thich is the system of mass production can not meet this challenge.
Traditional pemanufakturan system set production schedule based on forecasting needs in the
future. Though no one can predict the future will come for sure even though he had a perfect
understanding of the past and has a keen instinct for trends in the market.
Production based on predictions for the future in the traditional system have a greater
risk of loss due to over production rather than production based on actual demand. Hence
comes the idea of using flexible strategies, short product life time, and able to minimize the
time of production (manufacturing lead time) and distribution (ordering leads time) which is
the Just In Time, which produces only when there is demand. A production process will
produce only when signaled by the next process. As a result, waste can be removed on a large
scale, in the form of improved quality and lower production costs. Both of those make the
company more cooperative. Just In Time main goal is to improve the company's profitability
and competitive position achieved through cost control efforts, improving quality, and
improving delivery performance.

II. Purpose
The purpose of writing this paper is to determine what is the terms and basic concepts
of the application of the Just In Time (JIT) system. It also to know what is the main goal of
the implementation of JIT systems in a company.


DISCUSSION

I. Just In Time
Just In Time is a manufacturing philosophy that has important implications in cost
management. The basic idea of Just In Time is very simple, the production only done if there
is demand (full system) or in other words to produce things requested, at the request and for
the quantity demanded. The basic principle of Just In Time is an increase in the company's
ability to continuously respond to changes in the waste minimization.
The companies increased attention to the potential benefits of:
1. Creating purchase orders that are smaller and more frequent.
2. Rebuilding relationships with suppliers.
Both of the above related to an increased interest in purchasing the system on time (Just
In Time). Just In Time Purchasing is the purchase of goods or materials so the delivery
properly precedes demand or use. In an extreme lack of supplies (goods to be sold to a
retailer, raw materials work in process or finished goods to a producer) which were stored.
Companies that use the purchase of Just In Time normally emphasize the hidden costs
associated when holding high inventory levels. These hidden costs include the amount of
storage space and a larger number of defects is quite large.

II. Definition of Just In Time
Just In Time is a whole philosophy of operations management in which all resources,
including raw materials and spare parts, personnel, and facilities used to the extent needed.
The goal is to raise productivity and lessen waste. Just In Time is based on the concept of
sustainable production and flow of each part of the production process requires collaboration
with other components. Direct labor in the Just In Time strengthen with extension
responsibilities that contribute to labor costs, space and production time waste cutting. Just-
in-time production methods requiring no raw material inventory because raw materials and
spare parts to the plant is scheduled to arrive from suppliers only when they need it.
In the broadest sense, JIT is a philosophy that focuses on timely events required by other
internal segments within an organization. JIT has four main aspects as follows:
1. All activities which are not value added to a product or service should be eliminated.
Activities that do not have the value-added increase unnecessary costs, such as inventory
as much as possible to zero.
2. There is commitment to constantly improve the quality. So that the damaged and
defective products as much as possible become zero, does not require the time and cost to
rework a defective product, and can increase the buyer/customers satisfaction.
3. Always strived continuous improvement to improve the efficiency of the activities.
4. Emphasizing on streamlining activities and increasing understanding of the value-added
activities.
JIT can be applied in various corporate functional areas such as purchasing, production,
distribution, administration and so on.

III. Basic Concepts of Just In Time Systems
Just In Time production system was originally developed and promoted by the Toyota
Motor Corporation in Japan. This strategy was later widely adopted by many Japanese firms,
especially After the oil crisis in 1973. The main purpose of the implementation of Just In
Time production system is to reduce production costs and increase the productivity of the
total industry as a whole by eliminating waste on a continuous basis. The goal of the
production Just In Time (JIT) strategy is the reduction of costs and increase the turnover of
capital flows (capital turnover ratio) by eliminating any waste in the industrial system. JIT
should be viewed as a broader than just an inventory control program. JIT is a philosophy
that focuses on efforts to produce products in an amount corresponding to the needs of the
customer, at the right place and time.

IV. Just In Time (JIT) Philosophy
In simple way, the philosophy of JIT is "eliminate all forms of waste", and the way to
achieve it is by making continuous improvement. Waste is defined as any activity that does
not add value to the product, or all of the production elements that only increase costs without
adding value.
One method of the JIT system to reduce waste as goods awaiting is using the MFO (Multi
Function Operator) the incorporation of multiple processes to solidify job efficiency. The
largest component of waste is waste caused by excessive inventory. The main functions of
inventory is as a support between production and the market, in the sense that if the market
demand arrives soaring highly and production capacity is not sufficient, then the demand can
still be met using existing inventory. But this excessive inventories result in a hidden
problem, one of which is the high lead time or the time needed to produce the finished
product. Therefore, by reducing the amount of inventory, the problem that is hidden can be
seen and solved. There are two things in the waste removal process, among others:
1. Efficiency is only successful if the production cost is reduced.
2. Improving efficiency should be done completely and gradually.
From the statement above it appears that the goal of the production strategy of Just In
Time (JIT) is the reduction of costs and increase the turnover of capital flows (capital
turnover ratio) by eliminating any waste in the industrial system. Under the JIT philosophy,
every material, machinery and equipment, human resources, capital, information,
management, processes, etc. that do not add value to the product called waste. Value-added
products, is the key word in the JIT. Basically the JIT production system has six basic
objectives as follows:
a. Integrate and optimize every step in the manufacturing process.
b. Produce quality products in order to fulfill customer desires.
c. Lowering the cost of manufacturing continuously
d. Only produce based on customer demand.
e. Developing manufacturing flexibility.
f. Maintaining a strong commitment to working with suppliers and customers.
JIT approach to Total Quality Control (TQC) aims to develop an attitude that is based on
three main principles, that are:
1. The first principle: defect-free output is more important than the output itself.
2. The second principle: defects, errors, damage, congestion, etc. can be prevented.
3. The third principle: prevention is cheaper than reworking.

V. Basic Principles of Just In Time
To apply the JIT method there are eight basic principles that should be considered in
determining the production system strategies, those are:
1. Doing Production in accordance with the order of the Master Production Schedule
New manufacturing system will be operated to produce ascertained wait after a certain
amount of incoming orders. The ultimate goal to produce finished goods on time and to
the extent of the amount that want to be consumed only (Just in Time), for it would result
in the production process as many times as needed and immediately sent to customers
who need the product in order to avoid the stock as well as to reduce the holding cost.

2. Production is carried out in a number of lots (Lot Size) that are small to avoid complex
planning and lead time as well as in the production of large quantities. Flexibility of
production activities will be done, because it is easier to make adjustments in the
production plan especially against changes in market demand.
3. Eliminate Waste
Waste must be eliminated in every area of existing operations. All use of input resources
(materials, energy, machinery or working hours, etc.) should not exceed the minimum
limit necessary to achieve the production target.
4. Continuous product flow improvements
The main purpose is to eliminate processes that cause bottlenecks and all unproductive
conditions (idle, delay, material handling, etc.) that can hinder the smooth flow of
production.
5. Product Quality Perfection
Product quality is the goal of the Just in Time production system application. Here always
strived to achieve a state of "Zero Defect" by total control in every step of the process. All
forms of deviation must be identified and corrected as early as possible.
6. Respect to People
With the Just in Time production system method every worker will be given a full
opportunity and authority to govern and make decisions whether a stream of operation
should be continued or terminated because of serious problems encountered in a
particular work station.
7. Seek to Eliminate Contigencies
Inventories that the basic idea are expected to anticipate the fluctuating demand and any
unexpected conditions, it will turn into waste if not used immediately. Similarly,
recruitment of labor in large numbers in an uncontrolled manner as commonly
encountered in the project activity will lead to waste if not used in time. Therefore, in
planning and scheduling of production must be carefully designed and controlled. Any
form that gives the impression of uncertainty must be eliminated and should be included
in the consideration and forecasting formulation models.
The seven principles of the implementation of Just in Time production system above is not a
firm commitment that is applied in the short term, but it must be built on an ongoing basis
and the commitment of all parties in the long run. In the short term, there is the possibility of
application of Just in Time production system will only add to the cost of production
following the consequences of the process of formation of a learning curve.
In addition to the basic principle of just in time, here is the order of application of the just in
time technique:
Apply 5S basis of improvement;
Basic improvement in the workplace is 5S concept that consists of Seiri (choosing),
Seiton (arrangement), Seiso (Cleaning), Seiketsu (Consolidation), and Shitsuke
(Habits).
Implementation of a single production cut to achieve line balancing.
Implementation of the production of small lot size and the improvement of methods
of preparation.
Implementation of operating standard
Lancer production assembling products according to the speed of the sale
Autonomation ("jidoka")
The use of kanban cards.

VI. Benefits of JIT
JIT is not just a method of inventory control, but also the production system of
interrelated production system with all functions and activities. JIT has many benefits such
as:
1. Reduced warehouse space for storage of goods.
2. Reducing setup time and production schedule delays.
3. Reducing waste items damaged and defective items with the detection of errors directly at
the source.
4. The proper use of machines and facilities.
5. Creating a better relationship with suppliers.
6. Better plant layout.
7. Quality control in the process.

VII. Relationship between JIT and TQM
To implement JIT is necessary to the overall total quality system in the organization. JIT
requires all departments to respond to its needs. When implementing JIT production
department, but the organization as a whole is not pursuing TQM, the production department
personnel will face a major obstacle. Besides JIT also requires changes, so often arise
rejection of the department have the money committed to change.
Continuous improvement (Kaizen) is always in conjunction with the Total Quality
Management (TQM). Even before the TQM philosophy is done or before the quality system
can be implemented in a company then this philosophy will not be able to be implemented so
that this continuous improvements (Just in time) is a business that adheres to the philosophy
of TQM itself. So that Kaizen can also be a unified comprehensive and integrated view.
Kaizen is a Japanese term in a language that can be interpreted as continuous improvement.
Kaizen is a unified comprehensive and integrated view that includes:
1. Customer-oriented.
2. Overall quality control
3. Robotic
4. Cluster quality control
5. Suggestions system
6. Automation
7. Discipline at the workplace
8. Overall productivity maintenance
9. Kanban
10. Perfection of quality improvement
11. Timely
12. Flawless
13. Small groups activities
14. Working relationship with manjer and employees
15. New product development
Kaizen has entered into the spirit of continuous improvement and sustainable based on the
spirit, this day should be more than yesterday and tomorrow should be better than today,
there should be no day without any improvement.



VIII. Purchasing with the JIT concept
Purchasing with JIT concept is a scheduling system procurement in a way such that it can
be done quickly to meet the demand for delivery or use. Purchases with JIT concept can
reduce the time and costs associated with purchasing activities by:
1. Reducing the number of suppliers so that companies can reduce the resources expended
in negotiations with the suppliers.
2. Reduce or eliminate the time and cost of negotiating with suppliers.
3. Having a buyer or customer with the established purchase program.
4. Eliminate or reduce activities and costs that are not value-added.
5. Reduce the time and cost for quality inspection programs.

IX. Production using JIT concept
JIT production is a production scheduling system of components or products on time,
quality, and amount as required by the next stage of production or according to customer
demand.
JIT production can reduce the time and cost of production by means of:
1. Reduce or eliminate work in process products in each workstation or stages of product
processing (zero inventory concept).
2. Reduce or eliminate the "Lead Time" (waiting time) production (concept of zero wait
time).
3. Continually seek to reduce setup cost machines at each stage of processing products
(workstation).
4. Emphasizing on streamlining product processing so that the activity is not value-added
production can be eliminated.

Companies using JIT production can increase efficiency in the areas of:
1. Manufacturing lead time (waiting time)
2. Inventories of materials, goods in process and finished products
3. Switching time
4. Direct labor and indirect labor
5. Factory rooms
6. Cost of quality
7. Purchases of materials
The application of JIT production can have an influence on the cost and management
accounting systems in several ways as follows:
1. Direct traceability number of costs can be increased.
2. Eliminating or reducing the cost (cost pools) for indirect activity.
3. Reducing the frequency of the calculation and reporting of information excess labor costs
and factory overhead individually.
4. Reduce detail and information recorded in the work tickets.

X. Inventory using Just In Time concept
Just In Time is based on the concept of sustainable production and flow of each part of
the production process requires collaboration with other components. Direct labor in the Just
In Time strengthened by the expansion of responsibilities that contribute to waste cutting
labor costs, space and production time.
Manufacturing companies keep three kinds of inventory: raw materials, work in process,
and finished goods. Supplies are designed to act as a buffer so that the activities of companies
are expected to go smoothly despite the supplier fails to delivery or if a department is not able
to operate for some time because of something or other. Supplies are designed to act as a
buffer so that the activities of companies are expected to go smoothly despite the supplier
fails to delivery or if a department is not able to operate for some time because of something
or other. However, storage of supplies that are certainly costly. System Just In Time is an
attempt to reduce or eliminate the supply. Companies that adopt the system Just In Time to
the production process must necessarily redesign plant facilities and the events that trigger
the process.
Production based on predictions for the future in the traditional system have a greater risk
of loss due to over production rather than production based on actual demand. Hence comes
the idea of Just In Time, which produce if there is demand. A production process will
produce only when signaled by the next process. As a result, waste can be eliminated on a
large scale, in the form of improved quality and lower production costs. Both of these
companies make more cooperative. Just In Time main goal is to improve the company's
profitability and competitive position achieved through cost control efforts, improving
quality, and improving delivery performance.



XI. JIT manufacturing and Product Costing
JIT manufacturing using a more focused approach than that found in traditional
manufacturing. The use of JIT manufacturing system is having an impact on:
1. Improving Traceability costs.
2. Improving the accuracy of product costing.
3. Reducing the need for allocation of cost center service (department services)
4. Changing behavior and the relative importance of direct labor costs.
5. Affect the pricing system and the order cost.

JIT manufacturing Compared with traditional manufacturing
JIT manufacturing is a demand pull system (Demand-Pull). JIT manufacturing goal is to
produce only if the product is needed and only for the number of requests the buyer
(customer). Some of the differences between JIT manufacturing with traditional
manufacturing include:
No. JIT TRADITIONAL
1
2
3
4
5
6

Pull-through System
Inventory isnt significant
Manufacturing Cells
Interdisciplinary Employee Skills
Quality Control (TQC)
Decentralization Service
Push-through System
Inventory is Significant
Departmental Structure
Specialization employee skills
Acceptable quality level (AQL)
Centralization Service


XII. JIT and Overhead Costs Traceability
In a JIT environment, some overhead activities that were used together for more than one
product line can now be traced directly to a single product. Manufacturing shaped cells,
interdisciplinary labor, decentralized services and activities are the main characteristics of
JIT.

XIII. Effect of JIT on Stock Assessment
One of the first accounting problems that can be eliminated with the use of JIT
manufacturing is the need to determine the cost of the product in order to inventory valuation.
If there is inventory, the inventory should be assessed, and the assessment to follow certain
rules for financial reporting purposes. In the JIT, inventory attempt to near zero (or at least
not at a level that is not significant), thus becoming irrelevant inventory valuation for
financial reporting purposes. In JIT, where Principal pricing products just to satisfy
managerial purposes. Managers require accurate product cost information to make various
decision, for example:
a. determining the selling price based on cost-plus,
b. cost trend analysis,
c. product line profitability analysis,
d. comparison with the cost of competitors,
e. decision to buy or by company itself, and so on.

XIV. Effect of JIT on the Ordering Cost of Goods
In the application of JIT system for the determination of the ordering cost. First,
companies should separate business between the business that the nature is repetitive and
between that are special orders. Furthermore, the manufacturing cells can be established for
business repeatedly.
By reorganizing the layout of manufacturing, the order does not require the most attention
in classifying the cost of production. This is because the costs can be grouped on a cellular
level. anyway, because the lot size is very small now, it is not practical to arrange the order
cost card for each order. Then the order will be using the properties of the system cost.




XV. Determination of Cost Process and JIT
In the process method, the cost per unit calculation would be more complicated because
of the existance of work-in-process products. By using JIT, zero inventory applied, so that an
equivalent unit calculation is not needed, and do not need to calculate the cost of the previous
period. JIT is significantly lead to simplification.

Conclusion

In simple, the philosophy of JIT is "eliminate all forms of waste", and the way to
achieve it is by doing contious improvement. Waste is defined as any activity that does not
add value to the product, or all of the production elements that only increase costs without
adding value.
From the above explanation can be concluded that the goal of the Just In Time (JIT)
production strategy is the reduction of costs and increase the flow of capital turnover (capital
turnover ratio) by eliminating any waste in the industrial system. JIT should be viewed as a
broader than just an inventory control program. JIT is a philosophy that focuses on efforts to
produce products in an amount corresponding to the needs of the customer, at the right place
and time. The main goal of JIT is to eliminate waste through continuous improvement. Under
the JIT philosophy, every material, machinery and equipment, human resources, capital,
information, management, processes, etc. that do not add value to the product called waste.
Value-added products, is the key word in the JIT.

References

Schonberger, R.J, Just In Time Production System: Replacing Complexity with Simplicity
in Manufacturing Management, Industrial Engineering, vol. 16 no. 10, 1984.
Mulyadi, Akuntansi Manajemen, Ed. 5, Jakarta : Salemba Empat, 1999.
http://en.wikipedia.org/wiki/Just_in_time_(business)
http://en.wikipedia.org/wiki/Kanban
http://pakguruonline.pendidikan.net/mpmbs4.html