May 27 2016
Can Lean Manufacturing Put an End to Sweatshops? | G. Distelhorst | HBR
“Producers in less-developed countries compete by keeping costs low. Conventional wisdom holds that improving working conditions (which typically costs money) would undermine the competitive advantage these firms enjoy. Our research suggests an alternative to this race to the bottom. It involves replacing traditional mass manufacturing with ‘lean manufacturing’ principles.”
Michel Baudin‘s comments:
In 2014, three academics from Oxford, Stanford and Brown researched the impact of Lean Manufacturing on working conditions in the Nike supply chain. The conclusions in the HBR article are less nuanced than in their original paper in Management Science, which concluded: “Using difference-in-differences estimates from a panel of over three hundred factories, we find that lean adoption was associated with a 15 percentage point reduction in noncompliance with labor standards that primarily reflect factory wage and work hour practices. However, we find a null effect on factory health and safety standards.”
May 31 2016
Manufacturing’s Digital Revolution | Travis Hessman | Industry Week
“The once distant and isolated worlds of OT and IT – of physical production and the software that drives it – has been on a steady, inevitable collision course for over a decade. Today, with the help of sensors, powerful analytics, and the Internet of Things, those two sides of the manufacturing world are finally ready to merge. The result will be nothing short of a full-scale manufacturing revolution.”
Sourced through Industry Week
Michel Baudin‘s comments:
“OT,” as an acronym, is new to me. In this context, it stands for Operational Technology, and it differs from IT in that, instead of putting out words and pictures on screens for humans to read, it issues instructions to physical devices, like automatic machines, robots, or Automatic Guided Vehicles (AGVs). “OT” in this sense is so recent that, google doesn’t know it, and spells it out as Occupational Therapy.
In her keynote presentation at the IndustryWeek Manufacturing & Technology Conference and Expo in Rosemont, IL, on May 4, GE’s Jamie Miller asserted that the OT/IT merger and the data-rich world of the Industrial Internet were the key drivers of changes in manufacturing for the next few years. But the obstacles to this merger, or even convergence, have been non-technical for decades. While the Industrial Internet of Things (IIoT) may be a real breakthrough, its absence was not the reason OT and IT have remained apart.
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By Michel Baudin • Press clippings • 1 • Tags: CIM, ERP, IT, Operational technology, OT, SCADA