Just-in-Time Supply Chain Managment Systems and Chrysler Auto

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In the article, “Chrysler Averts a Parts Crisis,” by Jeffrey Ball, in the Wall Street Journal, readers get a small glimpse of how major businesses utilize just-in-time systems and how they may be impacted during a national crisis such as September 11th. Just-in-time is getting the right quantity of goods to the right place exactly at the right time. The goal is to get products at a certain place not too early and not too late, instead, just-in-time.(1) Just-in-time systems is an inventory strategy that is relatively simple to explain and understand. In order to fully understand just-in-time systems we must thoroughly define it and answer a couple key questions. First, how does a just-in-time system minimize warehousing costs? Second,…show more content…
JIT minimizes “quality problems” that can result when parts sit around for a long time. JIT stresses the importance of minimizing waste. A company that uses JIT is from the school of though of feeling like they have a need for continuous improvement. The JIT viewpoint on improvement is “if it’s not perfect, make it better” instead of “it’s good enough.” JIT minimizes “quality problems” by using pull quick setups and small lots and by using flexible resources and efficient facility layouts. If parts aren’t sitting around wasting space and money then there is less of a chance for the parts to go bad. JIT systems depend heavily on transportation networks. Everything from trucks, boats, and planes help to deliver time sensitive parts to factories that use JIT. In the article, “Chrysler Averts a Parts Crisis,” it exposed how sensitive a JIT operation can be to a disrupted transportation network. On September 11th and the days following, airplanes were grounded and trucks were stuck in eighteen hour lines at U.S. border crossings. Since, in just-in-time systems, manufacturing parts are delivered to assembly plants a few times throughout the day in small batches, instead of less frequent deliveries in huge piles that require warehousing, this effected assembly lines and auto plants very badly. The JIT system works to minimize warehousing costs as well as quality problems

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