COVID, freak weather, chip shortages and other factors have automakers re-thinking the Just In Time (JIT) approach. JIT, where goods are received as needed, cuts waste and adds savings by having parts delivered shortly before going into a vehicle, but global supply chains often relying on a single supplier have grown brittle.
Producers are changing approaches amid plant shutdowns for lack of parts. Volkswagen of America, Inc/General Motors are building factories to supply their own batteries. Tesla is trying to lock up access to raw materials such as lithium/nickel by working with mining companies. Toyota Motor Corporation pushed suppliers to disclose who sells them components and built a database for 400,000 items which goes 10 layers down to expose vulnerability. They also stockpile 4 months for some items, the antithesis of JIT.
How can manufacturers get JIT benefits while minimizing unexpected problems? MOSIMTEC’s manufacturing simulation services can help. Conduct table-top exercises to shock-test supply chain disruptions, resilience test which suppliers are at risk, sensitivity test which raw materials are more important than others, see how long businesses can run despite disruptions at specific suppliers and more. Don’t let cheap items become expensive headaches. MOSIMTEC can help.
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Read more here: https://www.wsj.com/articles/auto-makers-retreat-from-50-years-of-just-in-time-manufacturing-11620051251