Value Chain

As part of the public flogging of Toyota for its massive quality problems and recalls, some are calling lean and the Toyota Production System into question. A recent WSJ article, How Lean Manufacturing Can Backfire, describes how Toyota’s use of common parts wreaks havoc during a recall. Part simplification is considered a lean practice. Many [...]

In a recent article in the New Yorker, author John Colapinto describes his adventures with a stealth Michelin Guide restaurant inspector in New York City as she visited some restaurants to see if they met the stringent guidelines to merit the coveted Michelin stars. The Michelin hotel and restaurant guide has enjoyed enormous success in France and many [...]

Yesterday Toyota announced that it is recalling 110,000 Tundra trucks built in 2000-2003 due to rust on the frames that is causing the spare tire to break off. Toyota is blaming a supplier, Dana Corporation, manufacturer of the cross member that holds the tire to the bottom of the truck, for the problem, and Dana is [...]

It was only a matter of time before the ever-popular Six Sigma would reach the college classroom. I was reading an article about how York College in Southeastern Pennsylvania has begun to offer a course in Six Sigma in its MBA program. This is one of many MBA programs now offering Six Sigma courses. The [...]

I don’t know about you, but I’m getting tired of being asked to fill out customer satisfaction surveys. It’s not that I don’t understand the need for customer feedback. Understanding the customer experience is important part of a good continuous improvement process. But often I’m not sure whether a company is going through the motions as [...]

Davis Ballistracchi recently penned an insightful piece for Quality Digest, Why Did Total Quality Management Fail? One of the key reasons is management. They talk the talk, but don’t walk the walk. They sit on the sidelines, cheering employees on, but nothing changes because management doesn’t change. Management blocks the change rather than enabling it.
This [...]

It looks like Major League Baseball is paying attention to supply management and supplier quality. Did you ever notice how frequently major league baseball players break their bats? And have you noticed how some bats shatter violently, with pieces flying dangerously all over the place? MLB has been trying to do something about this, especially [...]

In an unprecedented move, the European Aviation Safety Agency (EASA) ordered Airbus to remove all of its old Thales speed sensors and replace them with sensors from BF Goodrich. Apparently, singling out specific suppliers for both a defective part and for replacement parts in an air crash situation has never occurred before. Thales was upgrading [...]

Companies have typically viewed suppliers as a source of cost that needs to be reduced, as supplier costs directly impact the bottom line. And it’s a given that procurement is always under pressure to fulfill the cost reduction mission. But in the process of viewing suppliers as big dollar signs that need to be squeezed, [...]

With supplier bankruptcies a daily occurrence, to say that the topic of supplier risk has become hot is an understatement. The challenge is what to do about it.  Someone recently asked me whether there are any KPIs you can use to measure supplier risk. There are, but developing those KPIs is a business process that [...]