Do It Right The First Time - DRIFT


DEFINITION of 'Do It Right The First Time - DRIFT'

A theory from managerial accounting that relates to just-in-time (JIT) inventory (where a company only receives goods as they are needed to cut down on inventory costs) and production management. The idea behind DRIFT is that management wants all of the processes that make up the JIT philosophy to be done correctly and efficiently so there are no delays in the production process.

BREAKING DOWN 'Do It Right The First Time - DRIFT'

The importance of DRIFT arises from the fact that a JIT production system is heavily reliant on the movement of parts and information along the production process. Subsequently, if there is the slightest error at one of the stages of production the whole production process will be affected. By "doing it right the first time" a company is able to run a smooth production process without needing to carry excessive inventory and greatly diminish the costs of production.

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  3. Inventory

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  4. Just In Time - JIT

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  5. Managerial Accounting

    The process of identifying, measuring, analyzing, interpreting, ...
  6. Supply Chain Management - SCM

    Supply chain management is the streamlining of a business' supply-side ...
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  1. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  6. What can working capital be used for?

    Working capital is used to cover all of a company's short-term expenses, including inventory, payments on short-term debt ... Read Full Answer >>

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