In 1913, Ford launched the assembly line to great success on one basic premise: Never stop churnin ’em out.
Unfortunately, the past year has highlighted the line’s fatal flaw: If even a single screw is out of stock, everything has to be turned off.
With just-in-time manufacturing, supplies show up just as needed to save on space and costs.
Just-in-time manufacturing developed over decades:
It’s a great system for when things go as planned.
In the last few months, the auto world has taken one helluva beating:
Ford, for example, could see a 50% production hit and miss out on $2.5B in profits.
Companies are working to improve by stockpiling inventory, building vertically integrated supply chains, and, in the case of Tesla, signing exclusive deals for access to raw materials.
If anything, this whole ordeal has been a stark reminder for the auto biz not to put all their eggs in one basket.