The effectiveness of the Just-in-time systems is not just the only aspect of its nature. In addition to the strengths of JIT, there are a number of negative dimensions attached to its incorporation as well.
In JIT, the interdependence factor comes out as a real menace to the entire production and operations unit. If one link in the supply chain or production department is not able to perform its function, then the entire production process suffers because of that. This, in turn, proves to be costly for the company.
The market is a strangely fluctuating phenomenon and for companies abiding by the approach of JIT, it is difficult for them to cope up with those fluctuating cycles of customer demand. For instance, if the demand for a product goes suddenly up, companies using JIT won't be able to meet them since they are used to keeping small amounts of inventories.
All in all, a company should evaluate all pros and cons of JIT before taking the final decision of going by the very approach.
In JIT, the interdependence factor comes out as a real menace to the entire production and operations unit. If one link in the supply chain or production department is not able to perform its function, then the entire production process suffers because of that. This, in turn, proves to be costly for the company.
The market is a strangely fluctuating phenomenon and for companies abiding by the approach of JIT, it is difficult for them to cope up with those fluctuating cycles of customer demand. For instance, if the demand for a product goes suddenly up, companies using JIT won't be able to meet them since they are used to keeping small amounts of inventories.
All in all, a company should evaluate all pros and cons of JIT before taking the final decision of going by the very approach.