JIT manufacturing technique versus inventory based
I hope this post finds you well.
Staring at the front door as it is being unlocked, John takes a step back. “Wow, look at all these people.” said John, Customer Assistant in Household Items, at Big Box Store. John had been verifying mortgages applications previously, for 5 years. Until the bank installed software that auto verified mortgages. Reluctantly he moved in with his parents and started working nearby at Big Box Store.
Watching the crowd surge in, he sees a small thin man wearing a business suit, white oxford shirt, pressed with no wrinkles, walking faster than anybody else. John watched as he made a be-line straight to the pallet of toilet paper. A man with a mission, he was. He stopped just in front of the pallet, puts his hand on his hips and sighs. He turns and looks for an employee. When he spot’s John, he points to the pallet and said, “I’ll take it.”
“What do you mean?” said John.
“I’ll take the whole pallet.”
John’s eyes went wide. He stood up straight and said “OK. I’ll get the pallet lifter.”
John helped the man purchase the pallet of toilet paper and moved it to the car.
The customers elevated pickup truck with huge mud flaps, a gun rack and dried mud clinging to the fenders, was parked, half on lot and half on sidewalk. “Why did you buy so much?” said john.
“Covid” said the customer. He looked at John, “Didn’t you hear. It’s a pandemic.” He walked over to the driver’s side and climbed two steps to get in. The engine roared when it started. Driving away slowly, John stared, the fumes engulf him.
“What’s a pandemic.” John pondered.
“Hey is Joe there?”, john said.
“Yea this is Joe.”
“Yes Joe, we ran out of toilet paper today. Can you send us another pallet?”, said John.
“Hmmm … you’re not due for a pallet delivery until 2 weeks from now.” said Joe.
“OK, that’s all right. A guy came in and bought the whole pallet in one purchase and there are many other customers asking.” Said John.
“Hmmm … I’m sorry we don’t have any.” Said Joe.
“How about out back.” said John.
“What do you mean out back.” Said Joe.
“You know, … don’t you have inventory.” Said John.
“Inventory … you’ve got to be kidding. I can’t even remember when we last had inventory. That was years ago.” Said Joe.
“What do you mean. You don’t have an extra pallet out back, for emergencies.” Said John.
“No! … Look, we do what’s called Just in Time manufacturing. Which means you get delivers based on a schedule, the times are based on some software that calculates when the next pallet should be delivered. This way you don’t need inventory, … It’s cheaper this way.” Said Joe.
“So, what do I say to the customers?” Said John.
“I don’t know. I don’t deal with customers, that’s your job. You’ll get the next pallet in two weeks, OK.” Said Joe.
“OK, talk to you later, bye.” Said John.
John puts the phone down and proceeds to walk over to the other customers. He looks at the demanding people with their arms folded, and said, “Software is taking our jobs and Just in Time doesn’t work.” The customers with their flaring nostrils, jeer at him, one customer with a deepening tone said, “What are you talking about.”
John stumbles out of his hypnotized state and say’s “I’m sorry, … we are all out and there will not be another delivery for 2 weeks.”
Definition of Just in Time:
From the Economist Magazine July 23, 2009. Just-in-time
When first developed in Japan in the 1970s, the idea of just-in-time (JIT) marked a radical new approach to the manufacturing process. It cut waste by supplying parts only as and when the process required them. The old system became known (by contrast) as just-in-case; inventory was held for every possible eventuality, just in case it came about.
JIT eliminated the need for each stage in the production process to hold buffer stocks, which resulted in huge savings. JIT has other advantages too. It involves the workforce much more directly in controlling their own inventory needs, and it allows a variety of models to be produced on the same assembly line simultaneously. Before its introduction, assembly lines had been able to cope with only one model at a time. To produce another model required closure of the line and expensive retooling.
The JIT manufacturing technique came to the United States in the 1980’s.
These two pictures I copied from a google search, without permission, of course. Sorry.
