Dec 21 2014
Dec 7 2014
Bridging the Gap between Buyers and Suppliers | Robert Moakler | IndustryWeek
“Creating high performance, collaborative alliances between buyers and U.S. suppliers will ensure rebuilding a strong and sustainable American supply chain.”
Source: www.industryweek.com
Robert Moakler reiterates the well known fact that collaboration between suppliers and customers is a win/win, and offers an e-sourcing platform as the better mousetrap that will make it happen.
As COO of an “online marketplace exclusively developed for the American manufacturing industry,” Moakler is forthright about where he is coming from. But is lack of technology the reason why adversarial, arm’s length relations between suppliers and customers remain the norm?
My own findings on this matter — summarized in Lean Logistics, on pp. 342-350 — is that each side stands to gain a short-term advantage from unilaterally breaking a collaborative relationship, and that the business history of the past 25 years shows examples of this happening.
On the customer side, a new VP of purchasing can instruct buyers to use the information suppliers have shared to force price concessions. Conversely, suppliers can leverage intimate, single-sourcing, collaborative relations with a customer to charge above-market prices.
None of these behaviors is viable in the long term, but not all managers care about the long term, and the toughest challenge in establishing collaborative relations is defusing well-founded fears about the future behavior of the other side.
While wishing Mr. Moakley the best of luck in his business, I don’t believe technology is the problem.
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By Michel Baudin • Press clippings 1 • Tags: Lean supply chain, Supply Chain Management
Dec 5 2014
When Finance Runs the Factory | William Levinson | Industry Week
“Henry Ford achieved world-class results with three key performance indicators (KPIs), none of which were financial. His successors’ changeover to financial metrics, on the other hand, caused the company to forget what we now call the Toyota production system.”
Source: www.industryweek.com
Yes, giving power over manufacturing companies to accountants, as American industry massively did in the 1950s yielded disastrous results. The summary given in this article’s lead paragraph, however, does not match the historical record from other sources.
By Michel Baudin • Press clippings 3 • Tags: Alfred P. Sloan, Ford, Henry Ford, Lean Production, Mass Production, Toyota, TPS
Nov 27 2014
Setup Reduction Methodology | Alejandro Sibaja
“We may think, based in all the information about Lean Manufacturing, that many tools and methods are well understood, unfortunately on real live there is many misunderstanding about them, that’s why I decided to write this article, for one of the most popular and known tool, SMED.”
Source: alexsibaja.blogspot.mx
It’s good to see that not everyone has forgotten SMED or is taking it for granted. When you bring it up with manufacturing managers nowadays, they often respond with “Oh yeah, we had some consultants show us how to do this three years ago.”
“And how long do you take to set up this machine today?”
“I am not sure. Maybe 90 minutes…”
They think SMED is yesterday’s news, but they are not doing it, and they are often confused about its purpose. They think it is to increase machine utilization, as opposed to flexibillity.
Sibaja’s article is a valuable introduction to the subject. I would have called it “Setup Time Reduction” rather than “Setup Reduction,” which might imply that you are making fewer setups, or spending less time on setups overall. It’s not what SMED lets you do. Instead, your total setup time budget remains the same, but you are using it to make more setups and produce smaller lots of more different products.
I would also have put more emphasis on the use of video recordings in analyzing setup processes. You don’t just show up on the shop floor with a camera; instead, you have to prepare the ground carefully, secure the consent of the participants upfront, and know how to use the camera to capture the relevant details.
Sibaja’s last sentence is about using the information “in your next Kaizen Event,” which implies that Kaizen events are an appropriate method to manage SMED projects. It is not my experience. You might kick start a SMED project with a Kaizen Event, but not to finish it. Often, to achieve quick setups, you have to make changes to the machine and the tooling that require patient work over time. Standardizing the dimensions of 300 dies, for example, may take a year of incremental progress.
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By Michel Baudin • Blog clippings 0 • Tags: Lean, Quick changeover, SMED



Dec 24 2014
Hong Kong Power Company Holds QC Circle Convention | Quality Alchemist
CLP Power Quality Control Circle (QCC) Convention was established in 2002. It aims to offer our staff a platform to submit any creative ideas they may have to improve processes, procedures and overall operations in the form of a proposal. CLPP QCC Convention is one of key quality culture activities and HKSQ exco members were honored to be invited as guests for the Convention. Moreover, our former chairman Dr. Aaron Tong was one of judges.
Source: qualityalchemist.blogspot.com
The QC circle, born in Japan in the early 1960s and the object of a short-lived fad in the US and Europe in the 1980s, lives on as a useful tool in organizations that stuck with it, including many companies in Japan, China, India, and other Asian countries.
CLP Power has been an electrical utility serving Hong Kong for 100 years. In the jury that awarded prizes to circle projects at this convention was my friend Aaron Tong, former chair of the Hong Kong Society for Quality (HKSQ).
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By Michel Baudin • Management 0 • Tags: Continuous improvement, QC Circles, Quality