by the48thronin » Mon 04 May 2009, 17:01:11
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But the JIT system has nothing to do with the auto plants shutting down again, In fact they have to much stock sitting at dealer ships around the country because of low sales.
If I was not so busy with my business I would post pics of store shelves here [Vegas] and in Cali that I might be going soon, our stores are full and have asked some family members in other states and they see no problems, Heard no local or national news report of any shortages, only here.

Well, let me while returning the thread to the point it is about, bring in the auto plant shutdown again in a way that you might see why I included that fact here.
Auto manufacturing is in fact heavily dependent on JIT. The parts cars are assembled from do not come in to the assembly plant and then get stored in a warehouse until needed. The parts instead are made by suppliers in tiers who all depend on JIT instead of warehouses for their components.
So let's speak a minute about a Chrysler car that has a dashboard which at the time the chassis starts down the assembly line is in transit in a truck bound for the assembly plant with a 1 hour window for on time delivery. The dashboard will not go in until the 6th hour of assembly so it might be as far away as 200 miles as the chassis starts down the line. That dashboard was put together ( gages glove box doors attached, wiring harness, and accessory covers etc the night before the chassis started down the line at a tier 1 supplier who received the gages and accessories and wiring harness the night before as he molded the dash in his plastic molding machine.
No part of that dash including the pellets of virgin and recycled plastic should have been on anyones property more than 48 hours. Most of them less than 24 hours.
The components of that dash were manufactured at separate tier 2 suppliers each shipping on demand only enough product to the tier 1 supplier to keep the tier one supplier working for 24 hours.
Wiring harnesses were brought up from Victoria Mexico, Gages from machiladoras nearer the border.
Those tier 2 suppliers also used JIT deliveries of sub components that also flowed along a JIT distribution system, wire from wire plants in the border region of Arizona were mixed with those wires still made in Georgia. Glass disks from Victoria Mexico were assembled onto gage bodies at machiladoras near the border. Plastic molding also from Victoria Mexico made accessory panels and clear plastic covers for gage bodies.
The number of trucks on both sides of the border in constant motion to produce these parts in the short windows of time given to the task is in fact astounding. HOWEVER.
Beginning last week with the announcement that the assembly plants would be closing for at least 8 weeks for a summer break, each tier of the JIT system began to DEAL WITH IT.
The plastics molders started cutting orders to GE plastics and K and W plastics for virgin and recycled beads. The glass manufacturers stopped ordering in glass sand and coke for the glass ovens.
The small part component manufacturers ( tier 3 ) started reducing output and guarding against over inventory. Even the return loads of RACKS started disappearing as the suppliers refused empty racks as they had no storage space for them.
This is a snapshot of one JIT system. And all those trucks that did work as rolling Just in Time warehouses are now unemployed at that task. They will have only 3 options.
Park and wait it out hoping to have or find drivers if there is a restart.
Find any work to do at any price and hope to keep their drivers by allowing them to make some money.
Go bankrupt.
The suppliers they service are faced with similar choices if they are not diversified into non auto manufacturing work.
The effect on JIT of start stop is about the same as the effect of a heart attack on an athlete. Devastation will be a nice description .
The auto companies do not have the space nor the capital to get off the JIT model.. like junkies they are addicted to low cost suppliers and methods. Unfortunately low cost will not survive start stop or oscillation in tempo.. It is about what you would see in a marching army if every separate unit marched to it's own orders, and someone started and stopped for breaks when ever they wanted a cup of coffee rather than on a set schedule.
I am not in the JIT system at all. BUT I have been and I do understand it. I also have extensive networks of friends who are truckers and many of them are in the various JIT systems.
Because it is the easiest for non industry members to notice, much of this thread has been reports on FOOD retail JIT as demonstrated by the biggest JIT practitioner in the world... Wal-Mart.
The starts and stops in their system are not from closings of stores, but instead result from the failure of many suppliers and the shock waves rippling through the shipping communities involved, land and sea. OH and air for produce. The failure of JIT is in fact certain... the results are not certain, and will be interesting to watch.
Just for sh*ts and G*ggles I walked across the street from this truck stop in Connecticut. ( well I did need some dry dog food because it was unavailable in Wal-Mart over the weekend.)
I did get a Starbucks Caramel Machioto from the in store Starbucks, the dog food I needed, and had a conversation with some of the stock clerks who were restocking the shelves with the days shipment that had arrived at 7 am.. ( it was noon). They were all commenting on the lack of things to replace what was sold out and the adjustments they were making to displays to cover empty shelves with something that was in stock now.
another slide show is available at
http://s7.photobucket.com/albums/y297/sea-ya/54ct/?albumview=slideshow