In the last months, there has been an unprecedented power struggle between Volkswagen and its suppliers. Two of the suppliers stopped delivering, leading to a full stop of multiple production lines at six Volkswagen plants, including its main plant Wolfsburg. This whole mess comes on top of the separate problems Volkswagen has had with its Dieselgate. In this post I would like to look in more detail at what happened. Continue reading Volkswagen Supplier Relations Failure
Employment is an exchange of work for money. In my last post I showed a few tricks on how operators keep management in the dark about the true workload. However, management is also not giving out all the details on their side either. Naturally, the true value of the work is difficult to asses. Even if companies could know exactly how much each employee contributes to the success, they probably would keep this information top secret.
More interesting, however, is the value of the target workload, where operators are able to work continuously at 130% capacity without problem. The following are my own thoughts, as I have never seen these conclusions anywhere else before.
Employment is an exchange of work for money. As with most negotiations, both sides would like to keep their cards hidden, so employers and employees use different tricks in an attempt to hide the true facts from the other.
This post looks at the tricks of employees, whereas the next post will look at those of employers. As employees have more control over the work than they do over the salary, this post shows how to keep management in the dark about the true workload. Continue reading How Operators Hide the True Workload
To manage your shop floor (or any other part of your enterprise), you need to have reliable data about the situation on the shop floor. Even with reliable data, the remaining uncertainty makes good management a challenge. Many managers, to save precious time, rely on data and information provided to them by their people. This is a grave mistake! Always verify at least part of the data with you own eyes! You would be surprised how different – and usually worse – it is in reality. Continue reading Visit the Shop Floor or Your People Will Fool You! – Genchi Genbutsu
Accounting is one of the cornerstones of the modern economy. Cost accounting in particular helps in decision making with the goal to maximize profit. Many decisions are based on these numbers. Unfortunately, cost accounting usually does a really poor job of capturing the essence of manufacturing in general and lean manufacturing in particular. Continue reading The Problems of Cost Accounting with Lean
The largest ten car makers sell over 200 different car models on the US market. Without vans, SUVs, and sport cars, there are still 100 consumer cars left. Toyota has the largest number with a total of 14 models, yet they still have an excellent market strategy and very little self cannibalization. BMW has much fewer models, yet still manages to cannibalize itself. GM has 13 models and also steps on its own toes, while completely missing another market segment. This post is based on a master’s thesis of one of my students, Amir Javanshir, and the detailed source is at the end of the article. Continue reading American Automotive Market Strategy of Toyota and Others
Manufacturing systems have fluctuations. Material may arrive sooner or later. Production may be fast or not. The customer may order more or less. Generally, the less fluctuations you have, the more efficiently you can produce. Toyota puts in an enormous effort to control fluctuation, but even they have fluctuation. In this post I would like to show you the three basic ways how you can decouple fluctuations: inventory, capacity, and time. Continue reading The Three Fundamental Ways to Decouple Fluctuations
Lean manufacturing is difficult. External expertise can help you in improving your business. However, the wrong consultant can at best have no effect, or worse damage your company, or at worst kill the company. Hence the consultant you hire will have a significant impact on the outcome of the project. This post will give you some advice on how to select a good consultant. Continue reading How to Find a Good Lean Consultant