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outsydthebox

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Marshall said:
So would shutting down the line with every delivery kink and supplier part disruption. A thirty day supply on a new startup isn't unreasonable. After the suppliers have show they have worked out their kinks, THEN you can reduce the inventory.
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Hey Marshall, that is a legitimate question, but the issues that EM will face, is the same one that many industries do. And this is (in a nutshell) what many of them do: Under pre-determined contracts, If the supplier is late, causing assembly line "stops", the supplier faces heavy fines/penalties. These penalties serve (at least) 2 functions: 1) the "fines" will more that cover the hourly wages of everyone (on the "stopped" line) who is waiting on those parts. And 2) Provides incentive for these suppliers to not be late! ;)

We need to keep in mind that ALL of the suppliers involved with EM, are already providing "on-time" delivery, to the rest of the auto industry. :)
 
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Kuda

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TCBronson said:
Me too!
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ElioHat2.jpg
 
Marshall

Marshall

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outsydthebox said:
Hey Marshall, that is a legitimate question, but the issues that EM will face, is the same one that many industries do. And this is (in a nutshell) what many of them do: Under pre-determined contracts, If the supplier is late, causing assembly line "stops", the supplier faces heavy fines/penalties. These penalties serve (at least) 2 functions: 1) the "fines" will more that cover the hourly wages of everyone (on the "stopped" line) who is waiting on those parts. And 2) Provides incentive for these suppliers to not be late! ;)

We need to keep in mind that ALL of the suppliers involved with EM, are already providing "on-time" delivery, to the rest of the auto industry. :)
Click to expand...
That would give the suppliers the burden of having an inventory rather than Elio for parts purchased. Elio would still need a supply of those part they manufacture themselves.
 
pistonboy

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In "just in time" manufacturing, how much time is usually allowed between when the parts arrive and the need time of the parts?
 
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