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Category Archives: Operations Management
The reported 8471 % markup for drugs in the US
A report released on July 25, 2012 by staff in the US Senate committee on Commerce, Science and Transportation, examined the gray market for prescription drugs and why hospitals are forced to pay extremely high prices for some drugs. One … Continue reading
Too few countries producing staple crops and associated risk
An article in the New York Times (September 7,2012) describes food price increases of 10% from June to July 2012, corn and wheat price increases of 25% and soybean price increases of 17%. The reason – drought in the US … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability
Tagged agriculture, Capacity, Consumers, Cost, disruption, Environment, Global, Risk, Service, Suppliers, Supply Chain
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Civil disobedience, Rare earth processing and supply chains
An article in the New York Times (September 6, 2012) describes plans by two NGOs in Malaysia, Himpunan Hijau and Save Malaysia Stop Lynas, to protest a plan by Lynas, a materials processor, to start rare earth processing in a … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged Cost, disruption, Global, manufacturing, Rare Earths, regulation, Risk, Service, Suppliers, Supply Chain
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China slowdown and supply uncertainty for outsourcers
An opinion piece in the Wall Street Journal (September 7, 2012) describes supply issues faced by US companies that outsource manufacturing to plants in China. Some companies face demands for more money to buy raw materials, others find the company … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged China, disruption, Global, Insourcing, manufacturing, Outsourcing, Risk, Supply Chain
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The Cheesecake Factory and 2.5 % food waste
An article by Atul Gawande in the New Yorker (August 13, 2012) describes the processes used at the Cheesecake Factory restaurant to decrease its food waste to under 2.5 %. These include guest forecasting – which estimates the demand each … Continue reading
Posted in Operations Management, Service Operations, Supply Chain Issues
Tagged Consumers, Cost, Retail, Service, Suppliers, Supply Chain, Variety, waste
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The impact of incompatible fast charge plugs on electric vehicle growth
An article in the New York Times (August 31, 2012) describes two incompatible fast charging plugs – one standard, CHAdeMO, developed by Nissan, Mitusbishi and others, with separate prongs for slow and fast charges, installed in over 1,500 chargers. The … Continue reading
Posted in Operations Management, Supply Chain Issues, Sustainability
Tagged Consumers, Cost, Growth, manufacturing, Supply Chain, Sustainable
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Volkswagen (VW) and its Modular Transverse Matrix strategy for part commonality
An article in Fortune (July 23, 2012) describes VW’s plan to standardize the 60 % of a car model’s cost – the front axle, heating, air conditioning etc across 40 car models and thus seven million units. The projected savings … Continue reading
Posted in Global Contexts, Operations Management, Supply Chain Issues
Tagged automobiles, Capacity, commonality, Consumers, Global, Growth, Suppliers, Supply Chain
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Lending plants to get OEMs back on track after the Japanese earthquake
A report published by the Congressional Research Service (“The Motor Vehicle Supply Chain: Effects of the Japanese Earthquake and Tsunami” by Bill Canis, May 23, 2011) describes an example in which Denso, a Tier 1 supplier to Toyota, decided to … Continue reading
Posted in Collaboration, Global Contexts, Operations Management, Supply Chain Issues
Tagged Capacity, Collaboration, Cost, disruption, Global, Japan, Supply Chain, Tsunami
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40 % of US food produced is wasted – what is the impact ?
A paper produced by NRDC called “Wasted: How America Is Losing Up to 40 Percent of Its Food from Farm to Fork to Landfill”, suggests that 40 % of US food produced or $ 165 billion of value is wasted. … Continue reading
Posted in Operations Management, Supply Chain Issues, Sustainability
Tagged Consumers, Cost, Food, manufacturing, Supply Chain, Sustainable, waste
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Planning for Greece exiting the euro
An article in the New York Times (September 3, 2012) describes plans by US companies in the event of an announcement that Greece will exit the euro and move back to the drachma. Some of them include sending employees into … Continue reading
Posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues
Tagged Consumers, Cost, disruption, euro, Global, Greece, Risk, river transport, Supply Chain
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Global Supply Chain Musings 