JIT Adjusting through Pandemic - How every Business survived through JIT
1. Engr. KCV
Digital Transformation Architect
Process Excellence and Transformation Senior Manager
Ask Lex PH Academy Trainer & Mentor
IE-N
2. Just-In-Time (JIT) METHOD
ORDER as NEEDED ● PRODUCE as NEEDED ● DELIVER as NEEDED
Right Product at the Right Time in the Right amount
3. Suez Canal BLOCKED by Evergreen Container Ship!!!
$10 Billion worth of Cargo delayed…
Expected one (1) week more delays on arrival of US, European and Asia-Pacific Supplies
Just-In-Time (JIT) METHOD
Reliant on transportation and logistics network to provide things in a TIMELY way
4. Sudden Surge in Demand with
Lack of Backup Inventory
DEMAND SHOCKS
Flip on the consumer spending habits
CONSUMER HABITS
additional shipping and delivery
charges that accompany more
frequent ordering
LARGE ORDER
sudden increase in the price
of raw goods
SUPPLY SHOCKS
5. Flip on the Consumer Habits
CONSUMER HABITS
BEFORE COVID-19
AFTER COVID-19
Travel Fashion Cosmetics Technology
Health and
Personal Care
Food, Spirits,
Beer
Household
Cleaners
Vitamins and
Supplements
Segment Operations based on Market Outlook
Decide which production is in high demand, requires repurposing, slowing down,
shutting down or re-channeling
6. Sudden Surge in Demand with Lack of Backup Inventory
DEMAND SHOCKS
POTENTIAL ORDER
FORFEITS
EXTENDED
DELAYS
DISSATISFIED
CUSTOMERS
ADOPT – accept or agree to certain idea
ADAPT – alter or change in some way, get used to
7. BEFORE COVID-19 DURING COVID-19
FORD
INDUSTRY
TESLA
AIRBUS
ZARA
BACARDI
GUCCI
INDIAN ORDINANCE
FACTORY
Automobile Mfg
Automobile Mfg
Aircraft Mfg
Fashion
Alcohol
Apparel
Defense
Vehicles
PV Cells and Vehicles
Aircraft
Apparel
Rum
Clothing
Defense Equipment
Respirators and Ventilators
Ventilators
Ventilators
Surgical Masks
Hand Sanitizers
Masks
Ventilators
Source: World Economic Forum 2020
Sudden Surge in Demand with Lack of Backup Inventory
DEMAND SHOCKS
8. additional shipping and delivery charges
that accompany more frequent ordering
LARGE ORDERS
Transportation and Logistics Management
( Mitigate In-Transit Risk )
9. A sudden increase in the price of raw goods due to issues with
material sourcing, shortages, natural disaster, or political upheaval
SUPPLY SHOCKS
Priority Delivery Route, Primary & Secondary Sources
( In-sourcing and Local Suppliers )
10. Thinking that companies on their own will maintain a buffer stock
of finished units adequate for a true emergency is...Naïve!!!
They would go bankrupt if they tried…
Womack – Lean Enterprise Institute
Identify the Value Stream, and make the Value Flow UNINTERRUPTED