Page 7 - CIMA MCS Workbook May 2019 - Day 2

Chapter 8

ADVANCED MANAGEMENT

ACCOUNTING (P2) PRACTICE TASKS

TASK 1 – JUST IN TIME, QUALITY AND THEORY OF CONSTRAINTS

Trigger and task

To: Finance Manager

From: Linus Maas

Date: Today

Subject: Just in time, quality and theory of constraints

Hi,

Carla Holm said that you would be able to help me out on something I’m looking into.

As you know, our production and purchasing processes run on a just in time system. Sometimes,
when we recruit new staff into the factory, they have no experience of this kind of system. I’d like
to be able to give them some briefing notes on how it works.

I can spend a bit of time with them when they first join to tell them the specifics of our processes
but I’d like them to have an overview set of notes to be included in a training manual that they
can keep.

I’d like the notes to cover why just in time processes are so efficient (in comparison to traditional
stock‐holding operations) and why maintaining high quality across all areas is so important.

Carla said you have covered in your studies the theory of constraints, what bottlenecks are and
how to deal with them, so can you also briefly include how that fits in with the JIT system?

Thanks,

Linus

Prepare the work that Linus has requested. (Time 45 minutes)

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