Natural disasters and other supply chain disruptions can play havoc with just-in-time (JIT) processes. Nevertheless, for the most part, analysts and manufacturers contend the benefits of JIT outweigh the risks.
"The risk is so small when you consider the gains and what it does for you as far as the bottom line," says Paul Adelberg, vice president of lean technology for swimming pool components manufacturer Hayward Industries Inc. Certain research supports Adelberg's contention, other studies suggest manufacturer confidence in JIT could be waning.
The latter could be because manufacturers jump ship too quickly when problems arise with JIT. "It seems very common that people get on the bandwagon of some of these philosophies like JIT, and they give up as opposed to understanding that it's not something trendy to do," says Lisa Anderson, president and founder of business processes advisory firm LMA Consulting Group Inc.
Anderson and other industry experts say manufacturers can lessen the risks associated with JIT and make it more effective by forming strong partnerships with their suppliers and establishing backup plans for unforeseen circumstances.
Source: Industry Week, http://industryweek.com