Reply to post: Yet again JIT causing problems

Bad news for automakers: That fire at the Renesas chip plant was worse than expected

Duncan Macdonald
Unhappy

Yet again JIT causing problems

Just In Time manufacturing works very well till it fails very badly!!

Any plant that relies on JIT is only one supplier delay away from loss of production. Management SHOULD (but rarely does) consider the benefit from reduced component inventories against the loss of production if a component is delayed. Any international delivery of components can be expected to have delays from time to time and therefore should have a higher stock level to handle delays. If a supplier is approaching 100% of its capacity then delays are also likely due to the supplier not having slack to take up any production problems (and again a higher local stock level is warranted).

Icon for when JIT has supply problems ==============>

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