Finance and Accounting Operational Processes Business

Question: Discuss about the Finance and Accounting for Operational Processes Business. Answer: Introduction: The above statement relates to constant monitoring of the operational processes of the business entity, to ensure that the organization overcomes the inherent discrepancies that have been hampering the operational processes of the business enterprise. I fully agree with the above statement that regular overseeing of the production processes of the organization would assist every part of the production processes. If things are moving according to the plan, then too many alterations shall be harmful for the business entity. This can lead to the increase in the production expenses of the operational entity and would have a negative impact on the business entity in the long run. This would also reduce the requirement of a large number of workforces that has to be employed in the manufacturing process. Frequent changes in the manufacturing process of the organization shall lead to the increase in production expenses in the business entity. In this regard, Bookbinder and Locke (2013) noted that it is necessary to maintain a level of constancy in the organization to consolidate the existing marketing and the operational strategies of the business entity. Thus, this would not interrupt the daily business functionalities without appropriate reason. In addition, the job role in the organization shall be well defined so that no confusion is created among the employees. Besides this, this shall assist the business entity in developing cooperation in the team members, and thereby contribute to the goals of the organization. Therefore, strict control shall be imposed, to identify any discrepancies and take appropriate measures for the growth of the business organization. Role of JIT (just-in-time) The just-in-time techniques (JIT) have assisted the business enterprise to meet the supply demands of the organization on a regular basis. This would also assist the business entity in reducing the unnecessary wastage of resources. The JIT method has been very useful in the case of the manufacturing entities Kang and Bekkers (2015) mentioned that the above statement rightly states that unnecessary interfering in the operational policies of the business enterprise shall increase the production expenses of the business enterprise. In this regard, it can be said that this has an positive influence on the operational strategies of the business entity. Therefore, fewer personnels shall be required to assist the business entity in conducting the daily business functionalities. Automobile entities like Toyota as well Tata Motors have been using JIT to enhance the production processes in the organization. This has been effective in meeting the market demands of the consumers. JIT has been ve ry useful for these companies, in the context of inventory control. As such, it can be said that JIT has been of considerable assistance to increase the efficiency as well preventing the waste of resources. JIT has facilitated the process of forecasting of demand, thereby, leading to better production processes of the business entity. Evaluation of JIT Technique As such, JIT shall have a number of benefits. These includes better utilization of time and resources and enhanced productivity of the organization. In addition, there would be lesser requirement of labor and the resources. The JIT ensures that there would be no shortage of raw materials in the context of the production of the goods (Kamei et al. 2013). This would assist the organization in meeting the expectations of the consumers. The JIT technique can also be useful in other business entities apart from the manufacturing units in the organization. It is useful for 0il and gas as well as warehouse management to meet the supply demands of the organization. Exxon Mobil based in the US, has been using JIT techniques to reduce the wastage of resources and facilitate the increase in the productivity rate. As such, this would be helpful in any business enterprise to reduce the operational expenses of the business enterprise. This shall enhance the productivity rate in the organization, and would lead the organization to achieve further in the market. JIT technique has been essential for retail entities in the organizations. The reputed retail entities have been operating in a wide range of product and service lines. Hiran (2016) mentioned that the JIT technique has been essential for the business entity to manufacture a wide range of retail items to offer superior customer satisfaction. Implementation of JIT technique has a number of drawbacks, though having several benefits. The JIT technique has been essential for enhanced productivity of the organization with limited time and resources. In the initials stages of its implementation JIT shall incur certain costs which can be burdensome for the organization (Lou et al. 2015). In addition, the staff of the organization has to be trained to adjust to the alterations in the production process. Thus, this skill upgradation programs have to be implemented in the organization, which might not be possible under all circumstances. Besides this, the changes in the business organization are generally resisted within the organization. Therefore, this shall have a negative impact on the execution of the JIT system in the organization. In addition, there are certain pre-conceived notions associated with the JIT system. Therefore, it is essential that the JIT technique has been implemented in the business organization as per the needs and wants of the business entity. The JIT technique doe not consists of single version and changes with the demand of the business entity. As such O'Grady (2012) noted that the JIT technique has to be altered to match with the needs and the purpose of the business entity. To establish the nature of JIT shall take considerable time and resources. As such, the JIT technique is also not suitable in the case of the production of luxurious and the exquisite products. Thus, the JIT technique shall not be appropriate for the manufacture of such goods. References Bookbinder, J.H. and Locke, T.D., 2013. Simulation analysis of just in time distribution. International Journal of Physical Distribution Materials Management. Hirano, H., 2016. JIT Implementation Manual--The Complete Guide to Just-In-Time Manufacturing: Volume 2--Waste and the 5S's. CRC Press. Kamei, Y., Shihab, E., Adams, B., Hassan, A.E., Mockus, A., Sinha, A. and Ubayashi, N., 2013. A large-scale empirical study of just-in-time quality assurance. IEEE Transactions on Software Engineering, 39(6), pp.757-773. Kang, B. and Bekkers, R., 2015. Just-in-time patents and the development of standards. Research Policy, 44(10), pp.1948-1961. Lou, Y.I., Wang, H.C., Chen, J.C., Vatjanasaregagul, L. and Boger II, E.P., 2015. Merging Just-in-Time (JIT) Inventory Management with Electronic Data Interchange (EDI) Impacts on the Taiwan Electronic Industry. Open Journal of Accounting, 4(03), p.23. O'Grady, P.J. ed., 2012. Putting the just-in-time philosophy into practice: a strategy for production managers. Springer Science Business Media.