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View Diary: Excessive outsourcing probably added 140% - 260% to Boeing's 787 launch costs (260 comments)

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  •  No, the idea was lean production (2+ / 0-)
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    neroden, Lefty Coaster

    and follows from what you could call "bottleneck" analysis.

    In a manufacturing process, there are typically a lot of steps and a lot of dependencies.  Inventory can build up in front of any one of those steps.  But if you want to maximize the amount produced vs. the amount of inputs, you want to know where in your process you're supply constrained, and feed just enough resources into those parts of the process that they cease being bottlenecks.

    I'm pretty pro union, but this is a case where I don't think management and labor need to differ.  A lot of inventory isn't just sitting around where you don't need it; it's actually waste.

    Certainly, there's also issues here with unionized companies pushing work into non-union sub-contractors.  And organizing the sub-contractors is hard.  But the power issue here is the problem, and not the use of lean manufacturing techniques like JIT.

    You can't govern if you can't tell the country where you are taking it. The plot of Obama's presidency has been harder to follow than "Inception." -- F. Rich

    by mbayrob on Mon Feb 07, 2011 at 08:23:48 PM PST

    [ Parent ]

    •  Obsolescence Issues Too (1+ / 0-)
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      neroden

      The JIT approach also can minimize the costs associated with obsolescing product lines.  Anyone who has had a product line terminated for any reason and been forced to write off an enormous inventory of in process parts knows the pain. Further, the Japanese had developed techniques for quickly changing product lines in operation in their limited manufacturing facilities after WW2.  They couldn't store lots of in-process inventory, especially if they were going to be bouncing around a lot in their production scheduling.  Many of those techniques were just adapted as they ramped up the volume and multitude of their product offerings.

      "Love the Truth, defend the Truth, speak the Truth, and hear the Truth" - Jan Hus, d.1415 CE

      by PrahaPartizan on Mon Feb 07, 2011 at 08:38:13 PM PST

      [ Parent ]

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