JIT manufacturing typically reduces inventories to much lower levels (theoretically to insignificant levels) than those found in conventional system, increases the emphasis on quality control, and produces fundamental changes in the way production is organized and carried out. Basically, JIT manufacturing focuses on continual improvement by reducing inventory costs and dealing with other economic problems. Reducing inventories frees up capital than can be used for more productive investments. Increasing quality enhances the competitive ability of the firm. Finally, changing from a traditional manufacturing setup to JIT manufacturing allows the firm to focus more on quality and productivity and, at the same time, allows a more accurate assessment of what it costs to produce products.