Question

Please comment on my answer, what do you think? I need insight, thank you!

Q) Concerns of JIT: What do you think can be the top managers' concerns about the implementation of Lean or JIT?

A) There can be a few concerns when it comes to implementing a Lean of JIT system. These processes of dependent on technology. That involves a lot of money and will there will be a need for people to understand how to use the technology. In addition, this leads to more expenses that a company didn't have before. It will increase labor costs and operation costs.

Implementing these systems is also labor intensive. Some people oppose innovation and new ways of operating, so that can be a concern too when it comes to training employees. Furthermore, these are usually large and complex systems. Employee development will be a necessity for the implementation.

Answer 1

Your answer is correct and captures important aspects like:

• Add on cost due to new technology
• Increased labor expense
• Need of training
• Reluctance to change

However, there are other important risk also in implementing JIT which are:

• High dependency on Supplier/Vendor: As the company will operate at wafer thin inventory, the support required from vendors is very high. Due to delay or issue at their end, there may be risk of business loss due to low production
• Increased cost of material from Vendor as they are managing inventory on our part. It will further increase cost

So, kindly include these two points also