Final answer:
Just-in-time delivery aids in improving quality control and reducing warehousing costs by having parts delivered as they are needed in the production process. It has reshaped labor dynamics, as factories situated close to assembly plants can quickly respond to production demands, but also resulted in increased labor market volatility.
Step-by-step explanation:
Parts arrive at the stand of the production process just when they are needed, a method known as just-in-time delivery. This strategy was adopted by American car manufacturers in the 1980s following Japanese business innovations. Adopting a just-in-time system eliminates the need for large warehousing storage, thereby reducing inventory costs. Quality control is enhanced because any defects in parts are identified promptly, ensuring that only parts meeting the required standards are used in production. This system requires suppliers to be close to the manufacturing plants to facilitate timely delivery. Consequently, this fueled the development of parts factories in areas surrounding main assembly plants to meet the demands of just-in-time production.While the just-in-time model offers logistical efficiencies, it also contributes to a volatile labor market. Such a system allows companies to outsource work to non-unionized plants, which may result in lower wages and benefits for workers.
However, the reliance on timely parts delivery gives workers, such as those at a brakes manufacturing plant, leverage if they strike. This can disrupt the entire supply chain, as seen in Dayton, Ohio, during the mid-1990s when General Motors assembly plants were forcefully idled due to a unionized workers' strike.Just-in-time delivery is part of the larger trend toward global assembly lines where products are assembled across multiple international locations. Companies like Apple design products in one country and have components made and assembled across different nations, reflecting the interconnected nature of modern manufacturing processes.