Looking for motivation on industry topics, I searched around various sites and stumbled across an article on lloyds.com called Building Supply Chain Resilience. The article brought up something that I hadn’t written about yet; lean manufacturing, like most engineering decisions, has risks. This article specifically refers to the natural disasters in 2011 that left large businesses crippled and the negative effects that lean principles have in such cases.
The crippled, or even destroyed, businesses were suppliers for other businesses and manufacturing facilities, which then sell their finished goods to retailers. The effects of disasters reach deeply into the affected industries. Lean manufacturing principles, specifically just-in-time (JIT) production, emphasizes low inventory levels of raw materials, work-in-process, and finished goods so as to minimize costs. For companies that are in the affected disaster area, JIT is ideal because it means losses were minimized. However, if you practice JIT production, what happens when your supplier unexpectedly shuts down or is destroyed by a natural disaster?