Due to the efficiencies that are provided by the Just in Time process it has become a competitive process based technology for inventory management. “The concept is a minimized costing system that increases efficiency, productivity and quality through economies of scale and control. Current business enterprises need this for both cost benefit and effectiveness to increase their chance of survival in the competitive market of the global environment.” (Seyed-Mahmoud, 2003)
The process of Just in Time as a result was of crucial importance and significance for most manufacturers in the period from 1970s leading to 2000. However the dynamics of the economy and the global operations are changing. There are specific changes talking place in the economic, social, political legal and technological environments of an industry. Some of these changes pertaining to national security in case of the events of 9/11 were seen in 2001 as depicted by the case of Chrysler. As a result in the uncertain political environment and the heightened security measures are being taken by countries, communication and transport of goods is being hampered causing delays in deliveries. This poses as an implication for Just in Time based operation systems as it creates stock outs which result in halt or product and operations. This totally negates the principle of Just in Time operation as the manufactures have to make provision for buffer stock in case of emergencies. This decreases the efficiency of the business and raises the costs in terms of product handling, material storage, and inventory maintenance and management. As a result it has become pertinent that changes have to be made to the Just in Time system in order to accommodate the changes in the environment and the resultant effects on the economy while providing for increased efficiency, reduced costs and maintained high quality of production.