Final answer:
Just-in-Time (JIT) is integral to lean manufacturing, focusing on minimizing inventory and ensuring quality by having supplies delivered as needed. Adopted by American car manufacturers in the 1980s, JIT replaced bulk warehousing with efficient supply chain management, but also had socio-economic consequences for workers. JIT's efficacy was a factor in the shutdown of Ford's historically significant River Rouge factory.
Step-by-step explanation:
Just-in-Time (JIT) is a cornerstone of a manufacturing strategy known as lean manufacturing. By receiving goods only as they are needed in the production process, manufacturers can minimize inventory costs and reduce waste. This practice was adopted by American car manufacturers in the 1980s, transitioning from large-scale warehousing to JIT delivery, which served to improve quality control and efficiency within the supply chain. Suppliers must be located within a day's drive of the assembly plant to ensure the timely delivery of parts. This proximity allows for immediate identification and correction of defects, ensuring a seamless production flow. However, this approach also brought about socio-economic impacts, such as pressure on wages and the creation of leverage for workers within the supply chain, as evidenced by a strike in Dayton, Ohio, in the mid-1990s that caused widespread shutdowns in General Motors assembly and sub-assembly plants.
Contrastingly, Ford's River Rouge factory, an example of earlier American factory design, was a self-contained entity where raw materials entered and finished products exited. This model was significantly different from the lean, just-in-time strategy, and despite its historical significance, it was deemed less efficient and shut down in 2004.