lean operations – OM in the News

Logistics at the Panama Canal During Drought

Restrictions on daily transit as well as cargo weight will continue throughout 2024, as the Panama Canal deals with drought that has lowered water levels.

Shippers as well as recipients of goods are feeling the impact.

(For an earlier post explaining restricted load sizes through the Panama Canal, see this June 2023 post.)

Video Spotlight:

Drought hampering Panama Canal could have major economic repercussions (Aug 23, 2023, CBS Evening News)
Drought causing backups […]

By Lisa M. Spencer|2023-09-24T06:48:14+00:00September 24, 2023|Tags: bottlenecks, capacity planning, inventory management, lean operations, logistics, nearshoring, reshoring, risk management, supply chain risk, transportation|

Inventory Levels Up for Under Armour

Under Armour’s factory partners are returning to pre-pandemic production efficiency. Unfortunately, the company’s apparel inventory levels have also begun to rise, threatening to drive down its profit margin.

Under Armour is planning to work through slow-moving inventory by offering discounts and pack-and-hold seasonless apparel for next year.

Video Spotlight:

Why Under Armour CEO says supply chain issues are causing ‘less discounting’ (Sep 1, 2021, Yahoo Finance)
Under Armour CEO: Inventory is a story, but […]

By Anita Lee-Post, Ph.D.|2023-03-05T20:00:03+00:00March 5, 2023|Tags: demand management, excess inventory, inventory turnover, lean operations|

Chick-fil-A’s Three-Day Workweek

A Chick-fil-A restaurant in Miami has gone to a 3-day workweek.

As Chick-fil-A restaurants are not open on Sundays, they have created 2 groups—referred to as pods. Each pod works 3 consecutive 13- to 14-hour days, and then has 4 days off. They also have one seven-day stretch of time off per month, and rotate weekends off.

In addition to the employees that are in the pods, they have other employees that follow more traditional schedules.

The 3-day workweek appeals to many workers. While […]

By Ross L. Fink, Ph.D.|2022-11-27T21:13:20+00:00November 27, 2022|Tags: job design, lean operations, productivity, scheduling, waste reduction, work force scheduling|

Railroad Employees Demand Changes in Operations

A major railroad strike has just been averted.

Employees complain that efficiency gains have resulted in demanding schedules and policies that penalize them for taking needed time off. Over two centuries, the railroad industry has had to reinvent itself multiple times to remain relevant and competitive. Changes in demand, supply, and competition have forced the industry to adjust to new realities and seek new paths to profitability. However, when these paths anger both customers and employees, it is time to consider […]

By CMKaruppan|2022-09-29T16:16:50+00:00October 12, 2022|Tags: competitivness, JIT, job design, lean operations, logistics, productivity, transportation|