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It’s Time to Rethink Just in Time

Gauthier Duval, Director, Lean Center of Excellence, Veryable, Dallas, TX USA

Keywords: Just-in-Time, Digital, B2B Marketplace

Industry: Manufacturing

Level: Intermediate

Abstract

Since its beginnings, TPS had a beautiful vision of Just-In-Time, but had to create workarounds to accommodate the ugly reality that certain factors of production were inflexible. That is where we need a rethink.

The advent of digital marketplaces now allows companies to scale labor, subcontracting, shipping or warehousing on a daily basis. This has 7 consequences and 3 limitations that will inform how businesses can leverage the tremendous opportunities that come with “Full Just-In-Time”.

The lowering of transaction costs on digital platforms enables instant communication and response across the market and connects those with excess capacity with those with a need for capacity–even if it is only for one day. We should also realize that leveling–like any batch process–introduces its own distortions, and that its removal will take away the noise feeding bullwhip effects. However, whatever capabilities technology brings, the need to adopt change management based on the realities of the shop floor remains. Logic may succeed in changing minds, but what matters is changing behaviors, which is achieved by leveraging the cognitive dissonance that happens when leaders are on the Gemba.








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