BUSINESS REPORT ON ELECTRONIC CIRCUIT BOARD PLC

Introduction

Electronic Board Plc is an organization established by an electrical engineer, John Watsons in the early 1970s as a sole proprietorship venture. The main business of the company is the production of electronic circuit boards. The company later on through dint of hard-work, developed into a public limited liability company. It maintained remarkable business success which climaxed in 1990, when it recorded an appreciable sales margin of £26 million and a profit after tax of £1.9m, using staff strength of 200 employees. The good business records of this company truncated in 1992, when it started experiencing heavy dwindling fortunes by recording abysmal drop in total sales
JUST IN TIME (JIT) INVENTORY SYSTEM
AND THROUGHPUT ACCOUNTING (TA)

Since it is reported that the Electronic Board Plc’s operational circumstance is multi-staged and suffers bottleneck with respect to direct materials and has three well defined ordering methods, her problems can be solved through Just-In-Time inventory system and Throughput Accounting (TA) approach. Just-In-Time (JIT) inventory technique is a management accounting practice which seeks to reduce business operational cost caused by large inventory holding. It achieves this by ordering them directly from their suppliers when required, instead of having to hold too much stock, Frank, W and Alan, S (2008). It is a “technique whereby the primary goal is to maximize throughput while simultaneously maintaining or decreasing inventory and operating