February 4, 2016 at 5:18 pm #47074
I’m posting this just as a reminder. With all the supposition regarding economic collapse consideration should be given to how fast supplies will dry up simply because inventories of goods don’t existi in modern production facilities.
“Still others assert that JIT’s main aim is elimination of inventories, although Murray maintains that “JIT is defined as ‘NOT an inventory control system—but a way of thinking, working and management to eliminate wastes in the manufacturing process’. In keeping with that view, JIT manufacturing has often been referred to in contrast to the more conventional just-in-case (JIC) mode: JIC keeps extra inventories to be used in case of disruptions (e.g., scrap, rework, equipment breakdowns, late deliveries), whereas JIT continually reduces such inventory buffers by continually attacking causes of disruptions.[need quotation to verify] Zero Inventories is the title of a 1983 book by Hall, but the book actually does not suggest that JIT is mainly about inventory; rather the book features quick setup, cells (group technology), kanban, and so on, and zero inventory is posed only as an unattainable ideal, one that is easy to see and count.”February 4, 2016 at 7:42 pm #47076
JIT manufacturing is just another of the wonders of modern technology that seeks efficiency over resiliency. It works great on paper but not so much when real world disruptions come into play. When WWIII comes, we will find out rather quickly that there is a whole lot of stuff that should have been stockpiled domestically during the good times.February 5, 2016 at 9:04 am #47080
JIT manufacturing and on demand stock systems are actually the best way yo keep cash flow high and assets low so there is more of a straight line from revenue to profit. Dell is a great example. They are a logistics company and not a computer company like most believe. They have assembly locations but they are mostly focused on tying contracted companies to Dell customers while maintaining control of the money.
I did a case study on them for my MBA.
JIT systems are great business strategies but horrible SHTF strategies.
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