What Is the Difference Between

Synchronous Manufacturing & Just-inTime Manufacturing?

A manufacturer obtains raw
materials
from
suppliers,
processes them in a production
center and distributes them to
customers.
Synchronous
manufacturing and just-in-time
manufacturing are two systems
that allow manufacturers to
reduce the time between the
customer's placement of an
order and receipt of the
product. Even though the goals
of these two systems are
similar,
differences
exist
between them.
Manufacturing Velocity

Manufacturing velocity is the

speed at which a manufacturer
produces
a
product.
Manufacturers
obtain
this
number by dividing current
cycle time by value-added
time. Current cycle time refers
to how long it takes between
removing
materials
from
storage until placing finished
products in the warehouse.
Value added time refers to the
"processing
time
of
manufacturing operations that
add value to the product.
Synchronous Manufacturing
In synchronous manufacturing,
production occurs in different
production
centers;
some
centers have constraints that

limit the rate of production and

some centers do not. Both
types of centers must focus on
using raw materials to produce
goods that are nearly ready for
shipment to customers, with
the production schedule closely
following the level of customer
orders. The manufacturer saves
money
on
the
cost
of
transporting raw materials to
production centers and by
preventing the storage of raw
materials
near
production
centers that aren't required for
satisfying
actual
customer
orders.
Just-in-Time Manufacturing
This
manufacturing
model
pursues a higher manufacturing

velocity by phasing out any

activity that doesn't increase
value for a customer. The
manufacturer wants to reduce
the time between obtaining
materials
and
finishing
products, and may focus on
problems
such
as
overproduction, product defects
and waste during transit of raw
materials. For example, if a
manufacturer wants to ensure
that
equipment
used
to
produce a plastic doll will result
in as many dolls as possible per
batch of plastic material, it will
focus on the condition of the
equipment so that factory
workers
can
make
improvements and reduce the

number of defective dolls they

must throw away.
Difference
The main difference between
the
two
systems
is
in
manufacturing velocity. Just-intime production focuses on
sourcing raw materials just in
time for factory use according
to a production schedule; it
helps manufacturers be able to
store low quantities of raw
materials.
Synchronous
manufacturing ensures that a
manufacturer processes raw
materials into finished products
in the order that customers
place orders, or first-in/first-out.
The latter model doesn't work
well when there's a delay in

raw materials or parts. For

example,
Japanese
manufacturers
that
experienced production delays
of computerized parts after the
2011
earthquake/tsunami
caused production delays for
auto
makers
and
other
companies awaiting their hightech parts, even in the U.S.

What is 'Backflush Costing'

Backflush costing is a product costing
system generally used in a just-in-time
inventory environment. Backflush costing
delays the costing process until the
production of goods is completed. Costs
are then "flushed" back at the end of the

production run and assigned to the goods.

This eliminates the detailed tracking of
costs throughout the production process,
which is a feature of traditional costing
systems.

BREAKING DOWN 'Backflush

Costing'
By eliminating work-in-process accounts,
backflush

costing

accounting

process.

simplifies

the

However,

this

simplification and other deviations from

traditional costing systems mean that
backflush costing may not always conform
to generally

accepted

accounting

principles (GAAP). Another drawback of

this

system

is

sequential audit trail.

the

lack

of