For General Mills, Shortages Lead to Price Increases

Ongoing supply chain issues have created material shortages and rising input costs for General Mills.

Disruptions of materials such as fats, oils, starch, and packaging have made it difficult to keep up with demand for General Mills’ ready-to-bake products, pizzas, and hot snacks.

General Mills resorted to changing its recipes to keep products on shelves.  Increased labor, transportation, and raw and packaging materials costs mean that the company will charge customers more for its products.


Video Spotlight:  

Neon Shortages from Ukraine May Increase Global Chip Shortage

Our chip-dependent world may be dealt another blow as supplies of neon may soon be in short supply.

Ukraine-based Cryoin, which produces the critical gas, is situated in Odessa and has been shut down since the war began.  In addition, transportation routes are flooded with refugees and commercial shipments may have a hard time reaching and moving through borders.

With up to 90 percent of the neon used by U.S. chip manufacturers coming from the Ukraine, alternative sources may be extremely hard […]

Time for a New Just-In-Time in the Auto Industry

Is Just-In-Time (JIT) going away?

Increased uncertainty and shortages have challenged the belief that JIT production systems are mistake-proof. The auto industry has widely and thoroughly embraced the systems for several decades. However, recent events have highlighted their limitations and the need to make them more resilient. This new imperative is consistent with the lean philosophy of continuous improvement.


Video Spotlight: Canada Trucker Protests Impacting U.S. Manufacturing  (February 10, 2022, NBC News) 


This post is based on the […]

Why Murata’s Plant Closure Did Not Disrupt Supply Chains

Previous OM in the News posts have discussed shortages of semiconductor chips caused by the leaning of supply chains. Supply chain disruptions of even a few days can lead to shortages if companies run too lean. During the pandemic, planning for supply chain disruptions has assumed increasing urgency.

Murata Manufacturing supplies about 40% of the world’s multilayer ceramic capacitors. MLCCs are used in everything from smartphones, appliances, cars, to data centers. The company closed its Fukui plant for […]

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