Lean Thinking and Lean Systems

Auto Industry’s Relationships With Chip Suppliers

Previous OM in the News posts have looked at the chip shortage and automotive production, and how Tesla, for one, is responding. We’re back with an update.

Semiconductor shortages go beyond an increase in demand for autos, port slowdowns, and other pandemic-related issues.

Part of the problem is that the auto industry traditionally has dealt with their suppliers in such a way as to allow short-term changes to their orders. Whereas most chip makers want guaranteed […]

By Ross L. Fink, Ph.D.|2021-10-24T03:03:04+00:00October 23, 2021|Tags: JIT, product design, shortages, supplier relationship, supply chain management|

The European Commission Plugs Standard Chargers

The European Commission (EC) proposed a new law mandating USB-C ports on electronic devices.

Interchangeable chargers would be more environmentally friendly and would make consumers’ lives easier. Although several manufacturers have already equipped their devices with USB-C ports and have bundled them with the appropriate chargers, Apple sees the law as a threat to innovation and to sales of its Lightning connectors.

Video Spotlight: EU Wants Universal Charger for All Devices (September 23, 2021, CityNews)

This post is based […]

By Corinne M. Karuppan, Ph.D.|2021-09-29T18:54:59+00:00October 2, 2021|Tags: product design, standardization, sustainability, waste reduction|

Factors Affecting Supply Chain Resilience

COVID-19 has exposed many vulnerabilities in our supply chains. Of particular note are supply chains for food and personal protective equipment (PPE).

Most people take for granted that we can walk into a grocery store, and leave with a wide variety of food items. However, in Spring 2020, this was not the case. Many store shelves were bare, including some essentials such as flour and pasta. Many farmers destroyed milk, eggs, and chickens, while other crops rotted in the field.

La-Z-Boy’s Raw Material Shortage Illustrates Supply Risk

La-Z-Boy, which operates its own factories, laid off 70% of its workforce in April 2020, when the pandemic hit. However, furniture sales rebounded quicker than expected.

When the company attempted to ramp up production, they ran into delays due to a shortage across the furniture industry of a key chemical in upholstery manufacturing.

Video Spotlight:

Furniture shortage amid pandemic (Aug 12, 2020, Fox59 News)
How a La-Z-Boy is Made (Dec 14, 2016, La-Z-Boy South Africa)

By David Little, Ph.D.|2021-01-26T08:54:18+00:00January 26, 2021|Tags: backlog, contract manufacturing, lead time, suppliers, supply chain risk|