Wednesday, November 16, 2011

Just In Time - When and Why

When and Why to use a JIT model?
You must have a strong offer and customer audience for this model.  
When?
When you are confident and proven to have a higher end value offer.  
Whey you are delivering based on customer specifications in a unique value stream.  
When you can devote more resource effort in the management and operational development and fine tune as your model matures.
Why?
To balance your risk with your effort.  Cash flow - either resource as an employee expense with high demand and low availability.   
In an automotive industry robotics exist for the high production models based on consistent action and response.  A higher end offer would be a limited edition custom built model.  

You have enough background on others who use the model, tried the model and successfully delivered the model.  
This model wouldn't work in a market with a strong channel model.  
The cost benefits to outsource aren't going to be a good investment. 

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