That 'just in time' bullshit is exactly that: bullshit. And it's everywhere (not just military) We used to make most of our parts in house, but the company decided it was costing them too much money to pay workers to do that so they went to JIT. Now we got to wait on suppliers, and when they send shit product, we're stuck wither fixing their fuckups or waiting until they send replacement parts. And somehow (don't ask me how) somehow this saves the company billions a year. Go figure. -lg
I remember when GM(I believe) started that, it was going to solve all their problems. The question of "What if?" seemed like was either ignored or not asked.
Just In Time got it's big push in 1979 when the US Supreme Court rendered a decision that backed a change in policy by the IRS. Until then, companies could write off the cost of maintaining an inventory of goods (e.g. the cost of warehousing, maintaining and insuring stock). That decision caused an instant spike in the cost of many items and a decline in US federal tax revenue because companies adjusted to the new rules. It really hit the book publishing industry hard, and caused a major change in production practices and pricing.
If you want to see the effect of the tax change, go to a used book store and look at how the original prices of paperback books rapidly changed from the 70's through the '80s. The court case was Thor Power Tool v. Commissioner of Internal Revenue.
3 comments:
That 'just in time' bullshit is exactly that: bullshit. And it's everywhere (not just military)
We used to make most of our parts in house, but the company decided it was costing them too much money to pay workers to do that so they went to JIT. Now we got to wait on suppliers, and when they send shit product, we're stuck wither fixing their fuckups or waiting until they send replacement parts. And somehow (don't ask me how) somehow this saves the company billions a year. Go figure.
-lg
I remember when GM(I believe) started that, it was going to solve all their problems. The question of "What if?" seemed like was either ignored or not asked.
Just In Time got it's big push in 1979 when the US Supreme Court rendered a decision that backed a change in policy by the IRS. Until then, companies could write off the cost of maintaining an inventory of goods (e.g. the cost of warehousing, maintaining and insuring stock). That decision caused an instant spike in the cost of many items and a decline in US federal tax revenue because companies adjusted to the new rules. It really hit the book publishing industry hard, and caused a major change in production practices and pricing.
If you want to see the effect of the tax change, go to a used book store and look at how the original prices of paperback books rapidly changed from the 70's through the '80s.
The court case was Thor Power Tool v. Commissioner of Internal Revenue.
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