'Japanese companies that have used just-in-time (JIT) for five or more years are reporting close to a 30 per cent increase in labour productivity, a 60 per cent reduction in inventories, a 90 per cent reduction in quality rejection rates, and a 15 per cent reduction in necessary plant space. However, implementing a just-in-time system does not occur overnight. It took Toyota over twenty years to develop its system and realize significant benefits from it.' Source: Sumer C. Aggrawal, Harvard Business Review (9/85).
(a) Explain how the benefits claimed for JIT in the above quotation are achieved and why it takes so long to achieve those benefits;
(b) Explain how management information systems in general (and management accounting systems in particular) should be developed in order to facilitate and make best use of JIT.