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The Liabilities of JIT
Considering the fact that manufacturers are often engaged in a variety of business models at once, any CEO of one of these companies would need to contemplate what while JIT me be excellent for the make-to-stock productions strategies, it would potentially be problematic for its build-to-order and mass customization strategies as well (Song, Dinwoodie, 2008). The innate uncertainty of mass customization strategies makes JIT as a strategy very difficult to manage to optimal performance levels. Adding in the fact that often supplier relationships in many manufacturers lack the real-time system and process integration achieved by Toyota with their TPS system (Amasaka, Sakai, 2009) just amplifies for many companies the losses that happen from a lack of integration.
Conclusion
JIT as a manufacturing strategy has to be selectively applied to only those manufacturing strategies that can benefit most from them. The use of JIT in make-to-stock manufacturing-based companies where demand is relatively predictable can alleviate the bullwhip effect that lack of demand visibility causes...
JIT is also a foundational element of the Toyota TPS and illustrates how quality management can be included in the process once integration of systems has been achieved (Amasaka, Sakai, 2009).
References
Amasaka, K., & Sakai, H. (2009). TPS-QAS, new production quality management model: key to New JIT - Toyota's global production strategy. International Journal of Manufacturing Technology and Management, 18(4), 409.
Epps, Ruth W. (1995). Just-in-time inventory management: Implementation of a successful program. Review of Business, 17(1), 40.
Ouyang, Y., & Li, X. (2010). The bullwhip effect in supply chain networks.
European Journal of Operational Research, 201(3), 799.
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