The Manufacturing Operations Blog

………………“A business that makes nothing but money is a poor business.” – Henry Ford……………….

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Archive for November, 2008

Big 3 and UAW must discover the flexible knowledge worker NOW.

Posted by charlieg021163 on November 30, 2008

For the Big 3 and UAW to compete globally, they must change their monolithic manufacturing methods to adaptive manufacturing like Nissan who was the only auto manufacturer to make their 08 sales projection.   Why?  Nissan’s newest plants are able to adapt to market change by making 2-5 models across lines and adjust based on demand, i.e. SUV to crossovers and small cars.  They moved to paperless plants years ago.   Second, the UAW and other unions are the second barrier to global change management at the plant. They do not allow Lean or MES/MOM technologies to be applied in any real way.  85% of American plants still run on paper-based workflows and workers are not permitted to be trained and then applied in 3+ jobs so process can flex to demand and resource commitment.  Big 3 and UAW MUST create the “knowledge worker” whose pay is based on margin contribution.  I work on 7 different international standards for manufacturing operations management and am an internationally recognized expert in the field.  The Big 3 business model must change from one based on departmental finance metrics such labor per hour to a supply chain process based business model based on margin per unit or car.  If the company makes money so does the worker.   Interested? I can direct you to a number of organizations driving this change against the old paper-based guard.  The plant needs to be a profit center, not a cost center.  I once worked in the largest Ford plant in Canada where we installed $1MM workflow optimization system and the UAW went on strike based on “safety concern” of tracking worker performance.  A similar situation occurred at a GE Aviation plant where overtime was removed by optimizing workflow so the Union striked due to tracking worker performance so then GE simply build a competitive plant in Czech Republic.  Lots more examples.  The Bailout will not work til Big 3 and UAW transform the 21st century manufacturing plant and worker.  Worker hourly rate is no longer the issue.”

Posted in Operational Intelligence | 1 Comment »

Leadership Required: Business for Social Responsibility Conference in New York

Posted by rkroes on November 18, 2008

A very timely conference on the subject of the leadership required to manage the sustainability of our world. On the eve of the event the citizens of the United States elected a new president after 8 years of George W. Bush (it was quite a scene in Times Square…).

Valuable perspectives were provided on Corporate Social Responsibility (CSR) including by CEO’s of GE, IKEA, Levi’s, and SK Telecom. General Electric Chairman and CEO Jeffrey Immelt laid out what he considers to be the four pillars of a successful CSR program:

- Remember the first part of CSR is “corporate”—you have to be competitive.
- Run your company on trust, which means compliance, governance, and transparency.
- Have a long-term commitment to your people.
- Orient your company to solve social problems, including energy and the environment.

Immelt also drove home the point that CSR must be strategic (YouTube).

Here are some session highlights relevant to the role of IT in supporting companies to be more sustainable:

- Is IT So Green?
- A Global Approach to Internal CSR Communications
- Reporting as a Conversation Starter
- CSR’s ROI: Does It Matter?
- How to be Lean and Green
- Innovating CSR Online

Summaries of all the sessions are available at:
http://www.bsr.org/bsrconferences/2008/session-summaries.cfm

Cheers,
Rich

Posted in General & Editorial Page, Green & Sustainability | Tagged: , | Leave a Comment »