Earlier quoted context omitted.
"Just in time" is a phrase I hate with vehement passion. You aren't optimizing the system, you're reducing safety marigns - and consequences are usually similar to Challanger. This is a solution that teenager put in management position would think of(along with hire more people as solution to inefficient processes), not a paid professional. Systems like electric grid, internal water management (anti-flood) shouldn't…
JIT isn’t about reducing safety margin. It was pioneered by Japanese companies, namely Toyota. They are known for risk adverse, safety first. > This is a solution that teenager put in management position would think of(along with hire more people as solution to inefficient processes), not a paid professional. What kind of comment is this? Toyota has been using and refining it for decades. It wasn’t invented yesterday…
Sure it is. That's exactly how it achieves the higher profitability. Safety margin costs money. Otherwise known as inefficiency.
Slack in the system is a good thing, not a bad thing. Operating at 95% capacity 24x7 is a horrible idea for society in general. It means you can't "burst mode" for a short period of time during a true emergency.
It's basically ignoring long tail risk to chase near-term profits. It's a whole lot of otherwise smart people optimizing for local maxima while ignoring the big picture. Certainly understandable given our economic and social systems, but still catastrophic in the end one day.