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15.06 - 22:47
Lockdown: Auto firms resume biz but just-in-time production model under strain
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NEW DELHI: As automobile manufacturing companies and their component makers start production after a long hiatus, the just-in-time model of production has come under immense pressure due to lockdown in several parts of the countries, non-availability of labourers and curbs on inter-state movement of vehicles.
As part of the just-in-time production model, car makers, to reduce costs, do not keep spare parts with them. The vendors supply on an hourly basis depending on the number of vehicles to be assembled by a particular manufacturer on a given day.
Most vehicle manufacturers, which have started production, have been utilizing just 20-30% of the capacity or even less in May, according to industry experts.
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