3 ms·
>Even when things are just in time, suppliers often start an assembly line, run it until their warehouse is full and then shut the line down to reduce expenses.
by dilemma 10y ago
>Even when things are just in time, suppliers often start an assembly line, run it until their warehouse is full and then shut the line down to reduce expenses.
JIT is part of lean. What you describe is short term mass production, not lean and also not JIT because it implies continuity.
- brudgers 10y agoAn auto-plant is probably just in time. As one steps down the tiers, 1,2,3 the more likely batch processing is because lower tier suppliers tend to supply multiple companies at higher tiers and it often makes more economic sense to set up and tear down production lines than to try to run them in parallel. Having an inventory also means that a hitch in production will incur contractual penalties under a JIT supply contract. The customer doesn't care when the shipping container was loaded with parts at the supplier's facility, just when it arrives at their loading dock.