“However, most did it wrong.”
Explains how just-in-time was misapplied versus the Toyota Way
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I’ve heard recently (in a video that I don’t know how to find again) that that’s exactly what happened with the automotive industry’s chip shortage: Toyota was the only one that built a stock of chips in advance, and now are the only ones that can keep producing cars without being limited by the shortage. Edit: found the video: this video At 13 min. 24 seconds: > Just in time is such a simple principle, but the pursuit of the elimination of waste is now the central mission of any major manufacturer. > However, most did it wrong. Manufacturers globally saw the headline “elimination of inventory leads to massive efficiency gains” and jumped on that without actually determining what made it work for Toyota. > They ignored that Japan's small physical size made for short domestic supply chains, less vulnerable to things going wrong. > They ignored the company's production leveling: finding the average daily demand and producing that regardless of short-term changes and demands. > They ignored the fact that eliminating excess inventory is different from eliminating all inventory. > They ignored the principle of growing strong teams of cross-functional workers predicated on respecting people. > They ignored the culture of stopping and fixing problems to get things right the first time. > They ignored huge swaths of the Toyota Way and created a system that’s less effective and less resilient but can impress shareholders through short-term savings. > How Toyota has effectively implemente