JIT v JIC: rethinking contingency with automation

The pace of product design innovation in many industries continues to outstrip innovation within the manufacturing process. The automotive industry is a prime example: producing the latest generation of electric vehicles (EVs) has put a tremendous strain on 20th-century manufacturing facilities. The need to add or expand production lines to support battery installation, the latest self-driving safety features or ever more complex entertainment systems places significant space pressure on an already fully deployed plant.

In addition, the impact of global supply chain disruption has added another layer of complexity and challenge to any industry that has embraced JIT inventory practices. Delays in shipping key components over the past 30 months (especially from China), combined with inflationary pressures, have encouraged many businesses to consider new strategies, including adding contingency stock into the mix. Yet, with limited capacity to store additional stock, this is easier said than done.

While few industries have been able to create manufacturing and assembly processes that keep pace with product design innovation, new market challengers are building greenfield sites with end-to-end automation. This is delivering a completely new level of efficiency. The new mega-factories built by challenger EV providers automate every stage, including unloading and loading, to further streamline the JIT assembly process.

Automated loading can eradicate damage caused by human error to parts such as bumpers or touchscreen dashboards, removing the risk of a vehicle being produced without all of its components. Likewise, with automation, there is no chance of the entire line being stopped while a replacement component is sourced – something that can cost the company £10,000s every minute. These new production facilities are not only far more efficient and cost-effective, but they are also lower risk and higher quality.

And that’s not all. Challenger companies are replacing outdated standards of operation with other novel approaches that radically improve efficiency and agility. For example, the traditional ‘one wheel at a time’ system used to unload wheels into a factory requires up to two hours to unload one lorry. In contrast, a recently installed automated wheel unloading system completes the entire process in less than three minutes. That means fewer HGV drivers for the same number of loads, minimal demand for scarce forklift drivers, and far more certainty over delivery timelines, supporting greater confidence in JIT processes.

If you’ve been working in the logistics industry, you’ll likely have heard of an inventory management model called ‘just in time’ (JIT) production. You may also hear some in the industry refer to it as ‘just in time manufacturing’ or ‘just in time assembly’.  

In our complete guide to just in time (JIT) production explore the ‘just in time’ concept, the advantages of JIT production, its disadvantages, how it differs from lean manufacturing and how to establish whether a JIT management system is right for your business. We’ll also look at some of the Joloda Hydraroll's solutions that are compatible with this system of management.