Not in Time Manufacturing
For decades, Japan has been a leader in Just in Time manufacturing: the premise that a company can reduce inventory amounts because an order to a Japanese partner or supplier would deliver the product to you, just in time for it's use.
With the three disasters (thus far) that have hit Japan, the auto plants are shut down, electricity production is on a three-hour rolling blackout schedule and Sony has stopped production at six of it's northern plants.
Companies around the world who have depended upon Japan for it's Just in Time delivery schedule may have to revisit their strategic plan and move to plan B, or the contingency plan, as Japan will likely be using a Not in Time production timeline for the near-term foreseeable future.
S.A. Romeo
The Strategy Expert
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We are in the hazmat/environmental containment industry, and unbelievably, most manufacturers in our industry sector are using the just-in-time model. How can one predict with any certainty when a disaster will hit? Our company is constantly chided by the lean community for having well stocked shelves full of decon equipment and containment supplies. Risk management is pushing the car to close to the cliff. A significant portion of our calls comes from clients that have an emergency and need spill containment yesterday. They claim that others in the industry are at least 3 to 5 days out. Maybe by having inventory we are not training our clients to prepare adequately, but our mission is to be there for them now, not 3 to 5 days from now.
ReplyDeleteTim Lewis
www.aireindustrial.net