lean – OM in the News

How to Apply 5W2H to FedEx Network 2.0

FedEx is closing six shipping centers and cutting staff as a result of reorganization under a multiyear plan called Network 2.0.

The plan calls for the merging of ground and express operations to cut costs and improve efficiency. Since the plan rolled out in 2022, FedEx has achieved a 10% pickup and delivery cost reduction.

Video Spotlight:

FedEx to Merge Delivery Networks in Cost-Cutting Move (Apr 5, 2023, Bloomberg Television)

This post is based on the Supply […]

By Anita Lee-Post, Ph.D.|2025-03-30T09:00:22+00:00March 30, 2025|Tags: 5W2H, cost-benefit analysis, lean, lean management, lean operations, process improvement, supply chain costs|

Continuous Improvement with AI Black Box Surgery

Will the AI black box become a quality and efficiency enhancing tool of the operating room of the future?

Or will it be perceived as a threat that invites malpractice suits and disciplinary action for medical workers?

New AI technology stands to make significant improvements to surgical processes and patient outcomes when used in the manner intended, but some still have their doubts.

Video Spotlight:

What is an operating room black box? | 90 Seconds w/ Lisa Kim (Sept […]

By Lisa M. Spencer|2024-10-02T05:00:34+00:00October 1, 2024|Tags: artificial intelligence, continuous improvement, efficiency, fail-safing, lean, quality, work design|

Stagnant Auto Market Leading to Upstream Supplier Challenges

The CEO of chipmaker NXP Semiconductors recently shared the company is struggling to reduce inventory levels due to low automotive demand.

Kurt Sievers, CEO of the Netherlands-based semiconductor manufacturer, shared that lower demand in the automotive segment—NXP’s largest business unit—led to 5% revenue reduction year-over-year. Sievers also shared that he expects ongoing lower automotive sector demand in the 2^nd half of 2024, with the company now expecting lower financial performance for the entire year.

NXP isn’t the only semiconductor company feeling the […]

By James Kirby Easterling|2024-09-06T05:33:58+00:00September 6, 2024|Tags: bullwhip effect, inventory, JIT, lean, MRP, sales and operations planning, shortage, supply chain, technology, upstream suppliers|

True Value Gains Supply Chain Visibility from FLOW

Home improvement retailer True Value continues to look at innovative ways to have more forward-looking supply chain visibility.

Jennifer McNeill, SVP of Supply Chain Operations at the 75-year-old company, is seeking more visibility, to improve supply chain resiliency and risk mitigation. The FLOW program—Freight Logistics Optimization Works—enables real-time data associated with cargo shifts to be proactively communicated. This proactive communication can mitigate supply gaps.

For example, if a container of goods is arriving late at a specific port, True Value may be […]

By James Kirby Easterling|2024-08-18T07:04:49+00:00August 18, 2024|Tags: JIT, lean, network design, risk mitigation, supply chain resiliency|