The advantages of just-in-time, it helps wring cost out of the production of a vehicle. All manufacturers are looking for ways to reduce cost out of the whole production cycle, from the procurement of the raw materials right through to the delivery of the finished vehicle to the dealer.
The disadvantage of just-in-time is that it is based somewhat on a perfect world — there is little room for error. And we are not living in a perfect world. Having the right transportation strategy is crucial.” (Haight, 2003) The just in time system when applied to the delivery and supply of the finished goods operations pertaining to the disbursement of motor vehicles in the market. Specific to the automotive sector, the concept for when applied to the management of the value chain network leading to the dealers and buyers in the market pertains to the planning, forecasting and assessing the needs of the markets for the motor vehicles. The transportation strategy in the lean operations support the inventory free model of the business whereby at the procurement and production side the resources and components are provide to the specific stages of the production process in the assembly line on a need by need basis. This requires the setting up of performance measures and controls for the immediate drop off of inventory as and when required in the production process as well as by the dealers in the market.
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