Final answer:
The just-in-time manufacturing approach focuses on producing products only when needed and in the exact quantities that are demanded, which was notably applied in American car manufacturing in the 1980s to enhance efficiency and quality control.
Step-by-step explanation:
The manufacturing approach that strives to produce a product only when it is needed and only in the quantities demanded by customers is the just-in-time manufacturing approach. This method was adopted notably by American car manufacturers in the 1980s and led to significant changes in supply chain management. By having parts delivered daily directly to the assembly plants, the need for large warehousing was greatly reduced. This approach not only saves on storage costs but also improves quality control, as defective parts are identified quickly, reducing the risk of integration into the final product. Just-in-time manufacturing can impact the local economy by influencing the location of suppliers and the nature of labor relationships, particularly concerning wages and unionization.