Disaster causes major problem in JIT concept

Disaster normally related to unexpected things or  phenomenon that act by god such as earthquake or typhoon. It really effected with companies production which related with transportation of supply for assembly line. It can be a major problem to companies who implement Just in time concept in their company. For example, Soon after the devastating earthquake and tsunami that struck  north eastern Japan on March 11, major manufacturers around the world sprang into action teams of employees scrambled to assess the impact on staff, factories and goods. They need to reconstruct their company because of disaster.

In a globalized economy where manufacturers have moved ever more toward lean inventories and  just-in-time production to keeping ultra-low quantities of parts on hand to avoid holding expensive stocks of parts . A speedy response was vital because a disruption to the global supply chain would spread quickly, shuttering plants employing legions of workers around the world. It will distrupted high-end, highly technical parts like semiconductors, which also weigh very little.

Phenomenon that happen also bring problem for General Motor . Interviewed by Reuters on March 17 Hoffecker said the real impact of supply disruptions for those parts would become evident "in about a week." GM said the parts it gets from Japan are more the high-end electrical type. Chips made by ON Semiconductor, which has shut down facilities in Aizu and Gunma due to infrastructure troubles, are used by automakers in everything from air conditioning to power steering, lighting, braking systems, navigation and lighting.It is not just a question of high-tech production, but also inventory. Even a split-second loss of power at a memory chip plant, where production takes weeks, can wipe out a large volume of goods.

Manufacturers with backup supply sources are already switching production to them. For those without alternatives, the race is on to find them, leaving many companies chasing the same ones.

Even if they do find alternative sources, getting them to produce the right part is a lengthy process involving design and factory testing. The production of any part can be moved over time, but in the short term it's a huge challenge .It takes more than weeks and less than years. It's certainly not something that can be done overnight. It's generally not cost effective to move to a new supplier .In the meantime, manufacturers face tough choices as inventories dwindle. They may be forced to halt production on some models as parts run out, or channel shared parts to popular models to maintain output. Toyota has been gradually implementing a strategy so that all of its models can be produced in more than one plant around the world. But that does not include the Prius, which is only made in Japan, leaving Toyota stuck. Multiple suppliers can also reduce the risk of disruptions.

JIT concept need to minimize inventory to avoid cost exceed .So if a companies want to implement Just-in time concept ,they need to create backup plan in so there will not be a major problem for them .Just in case anything happen they still can done the production.