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Yes it does, but as many of us are figuring out right now, one hick-up in your supply chain or system and it gets thrown into chaos pretty quick.  

For the cost of money right now I bet a lot of people wish they stocked up on inventory 

Now now you just insulted the resident house painter.  Much better looking at ink blotches.

It's fine unless the supply chain struggles, then it throws a constant headache to everyone involved.

Just look how new sleds ship without shocks and new cars are stopping production because of chip shortages.

Had they stock piled parts they wouldn't have these issues.

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Went through six sigma cert back in the 80s before it was common practice.  A big part of the discussion always revolved around the fact that all the pieces have to be working.  You save big bucks without any inventory.  You lose big bucks when the line shuts down because the doo hickey widget maker can't get you the widgets.

We certainly didn't need training to understand the concept.

We used to joke about the concept in the early days. 

"We'll run lean with supplier contracts to pick up the slack." 

It wasn't hard to get the suppliers to buy into the concept.  They had to carry the inventory costs until they went to lean process.  Contract language included charges back to the supplier for shutdowns.  The big players just pushed the concept down the line.

Money costs money.  Inventory costs money.  Lean manufacturing is all about the money.

 

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4 minutes ago, favoritos said:

Went through six sigma cert back in the 80s before it was common practice.  A big part of the discussion always revolved around the fact that all the pieces have to be working.  You save big bucks without any inventory.  You lose big bucks when the line shuts down because the doo hickey widget maker can't get you the widgets.

We certainly didn't need training to understand the concept.

We used to joke about the concept in the early days. 

"We'll run lean with supplier contracts to pick up the slack." 

It wasn't hard to get the suppliers to buy into the concept.  They had to carry the inventory costs until they went to lean process.  Contract language included charges back to the supplier for shutdowns.  The big players just pushed the concept down the line.

Money costs money.  Inventory costs money.  Lean manufacturing is all about the money.

 

True but if you can't deliver your incomplete project you are losing money, both on the production side and the customer service side.

Go and tell your customer the reason his $400,000 airplane isn't ready for delivery because you were cheap on the supply chain.  No, you'll tell them it's a supplier problem that you had no control over.  It's fucking stupid.

If you know you need something, like toilet paper, stock up on it.   

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We did this years ago when i worked at Andersen windows. It slowed our production lines down really bad but they told us it was more profitable and the management was happy with it. I quit shortly after we implemented it, but have friends there still that bitch about it constantly 

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3 minutes ago, favoritos said:

Normal people hate the idea.  Money managers love it.  Guess who wins.

It really is all about the money.

I don't understand it.  If your constantly fighting supply issues and constantly behind schedule, how is this better in the long run?

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3 hours ago, Highmark said:

Can be good and bad depending on the company/facility.    

Agreed.  If it get's folded into micromanagement....it's just a bigger squeeze on employees.  Like the old saying goes, "the fish stinks from the top down".  Otherwise, the practice is solid and can actually work in favor of employees...well, the good ones anyway.

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10 hours ago, Crotch Lickmeoff said:

Does it work? It does for Toyota.  We did a course at old job and was crazy interesting 

My current boss used to run the plant.  His take on lean manufacturing is he wanted so much inventory around you could lean on it.  Can't sell what you don't have and can't get.

Demand is unpredictable in many markets and the mix of products too.  Have the components and materials on-hand to make what you need when the customer needs it.  If you lead time is 5 days because the parts are in-stock and the competition is 8 weeks out, guess who gets the order?

30 minutes ago, Fireball 440 said:

True but if you can't deliver your incomplete project you are losing money, both on the production side and the customer service side.

Go and tell your customer the reason his $400,000 airplane isn't ready for delivery because you were cheap on the supply chain.  No, you'll tell them it's a supplier problem that you had no control over.  It's fucking stupid.

If you know you need something, like toilet paper, stock up on it.   

All sorts of supplier problems right now.  Order twice what you need with longer than normal lead times and be happy when they are only late a couple weeks.

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The big players just weed out the suppliers that can't play.

It seems like a sucky deal, but it is our world.

Zambroski nailed it with the term "micromanagement". 

There are tons of parts to managing the process.  Try explaining to a southern supplier that snowstorms are a problem in the north.  They need to add that problem to their supply management scenario.

We also have a developing infrastructure problem with more inventory on trucks that need to move without delay.  That little ship problem in the Suez actually highlighted the problem in a way that normal consumers can understand.  The trucking bottlenecks are nearly invisible to normal consumers.  Trucking is our next big disaster waiting when we start ramping up production.

I guarantee that we will be talking a lot more about trucking than anyone ever imagined in the very near future.  We rely on those trucks.  There are way too many parts of that process right at the breaking point.

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14 minutes ago, favoritos said:

The big players just weed out the suppliers that can't play.

It seems like a sucky deal, but it is our world.

Zambroski nailed it with the term "micromanagement". 

There are tons of parts to managing the process.  Try explaining to a southern supplier that snowstorms are a problem in the north.  They need to add that problem to their supply management scenario.

We also have a developing infrastructure problem with more inventory on trucks that need to move without delay.  That little ship problem in the Suez actually highlighted the problem in a way that normal consumers can understand.  The trucking bottlenecks are nearly invisible to normal consumers.  Trucking is our next big disaster waiting when we start ramping up production.

I guarantee that we will be talking a lot more about trucking than anyone ever imagined in the very near future.  We rely on those trucks.  There are way too many parts of that process right at the breaking point.

California lawmakers don't seem to think so. They don't seem to think much at all.

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54 minutes ago, Zambroski said:

Agreed.  If it get's folded into micromanagement....it's just a bigger squeeze on employees.  Like the old saying goes, "the fish stinks from the top down".  Otherwise, the practice is solid and can actually work in favor of employees...well, the good ones anyway.

Honestly much depends on production volume or EoS for it to be significantly beneficial or worthwhile but like everything you can pick and choose what parts are most beneficial to implement.   

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59 minutes ago, Highmark said:

Honestly much depends on production volume or EoS for it to be significantly beneficial or worthwhile.   

Agreed, on a smaller scale, I'm not sure it can reap the rewards much at all. That's more of a small operation being able to multi-task it's employees if you ask me.

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Just now, Zambroski said:

Agreed, on a smaller scale, I'm not sure it can reap the rewards much at all. That's more of a small operation being able to multi-task it's employees if you ask me.

Yep and why my business has stayed so successful.  HR is all that more important to smaller operations.   Got to have people who can be flexible, multi-talented and take initiative on their own without being micromanaged.     

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