Do It Right The First Time - DRIFT

What does 'Do It Right The First Time - DRIFT' mean

Do it right the first time (DRIFT) is 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.

RELATED TERMS
  1. Just In Time - JIT

    An inventory strategy companies employ to increase efficiency ...
  2. Just In Case - JIC

    An inventory strategy in which companies keep large inventories ...
  3. Inventory Management

    Inventory management is the overseeing and controlling of the ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors ...
  5. Obsolete Inventory

    Term that refers to inventory that is at the end of its product ...
  6. Average Age Of Inventory

    The average number of days it takes for a firm to sell to consumers ...
Related Articles
  1. Investing

    Just In Time

    Just in time (JIT) is a system of supplying goods as close as possible to when they are actually needed. For a company that resells, that means goods arrive just before hitting the shelves for ...
  2. Economics

    What is Involved in Inventory Management?

    Inventory management refers to the theories, functions and management skills involved in controlling an inventory.
  3. Investing Basics

    How to Analyze a Company's Inventory

    Discover how to analyze a company's inventory by understanding different types of inventory and doing a quantitative and qualitative assessment of inventory.
  4. Economics

    Explaining Carrying Cost of Inventory

    The carrying cost of inventory is the cost a business pays for holding goods in stock.
  5. Investing

    Days Sales of Inventory

    Days Sales of Inventory, also called Days Inventory Outstanding, is a key financial measurement of a company's performance pertaining to inventory management. In simple terms, it tells how many ...
  6. Professionals

    Basics of Inventories

    CFA Level 1 - Basics of Inventories. Introduces the basics of inventory processing systems. Highlights and expains the four methods of calculating inventory costs.
  7. Fundamental Analysis

    Understanding Periodic Vs. Perpetual Inventory

    An overview of the two primary inventory accounting systems.
  8. Economics

    How Does a Perpetual Inventory System Work?

    Perpetual inventory is a system that continually tracks inventory items for quantity and availability.
  9. Economics

    How to Calculate Average Inventory

    Average inventory is the median value of an inventory at a specific time period.
  10. Mutual Funds & ETFs

    Style Drift Can Hurt Mutual Fund Returns

    Small, gradual changes in a portfolio manager's stated strategies can be a big risk for investors.
RELATED FAQS
  1. How is investing in a corporate bond different from buying shares of the company's ...

    Learn what the just in time, or JIT, inventory system is by contrasting it with the just in case inventory system and reviewing ... Read Answer >>
  2. What are the main benefits of a JIT (just in time) production strategy?

    Learn about the just in time (JIT) business strategy and how using an on-demand production process can increase a company's ... Read Answer >>
  3. How does JIT (just in time) production affect ROI (return on investment)?

    Learn about the "just in time" production strategy and how this on-demand system affects return on investment by reducing ... Read Answer >>
  4. What are the main problems with a JIT (just in time) production strategy?

    Learn about the just in time (JIT) production strategy and how the precise coordination and timing it requires can end up ... Read Answer >>
  5. What is the difference between JIT (just in time) and CMI (customer managed inventory)?

    Understand the principles behind just-in-time inventory management and customer-managed inventory. Learn the difference between ... Read Answer >>
  6. Does working capital include inventory?

    Learn about inventory that is part of current assets and working capital, which is the difference between current assets ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center