Category Archives: Operations Management

Vertical Integration, Global Supply Chains and reliable power in India

The New York Times (July 27, 2011) describes a vertically integrated global supply chain built by the Adani Group – with coal mined in their mines in Indonesia, South Korean manufactured ships transporting it 4,000 miles to their port in … Continue reading

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Is US Inshoring of manufacturing and services a trend ?

An article in CNN Money (http://money.cnn.com/2011/06/17/news/economy/made_in_usa/index.htm?hpt=hp_t2) asks if the examples of companies inshoring i.e., bringing outsourced activities back to the US, is a long term trend. The articles identifies GE’s appliance plan in Kentucky that will produce refrigerators and water … Continue reading

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Impact of the DOT delay rule on flight cancellations

An article in CNN.com (http://www.cnn.com/2011/TRAVEL/06/13/tarmac.delays.cancellations/index.html?hpt=hp_bn12) describes the impact of the new Department of Transportation rile that penalizes airlines up to $ 27,500 per passenger for ground delays of more than three hours.  The result was a drop in such delays … Continue reading

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China cost advantage for manufacturing to disappear by 2015 ?

A report by the Boston Consulting Group (BCG) summarized in Supply Chain Digest (June 6, 2011) describes wage growth in China of 17 % a year (vs 3 % in the US) , increasing appreciation of the Yuan and labor … Continue reading

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Heavy Equipment monitoring and Energy Savings

An article in the Wall Street Journal (June 1, 2011) describes the use of electronic monitoring of heavy equipment (bulldozers, dump trucks etc) to decrease costs.  One contractor claims that his excavators were idling 48 % of the time in … Continue reading

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Adjusting Apparel features to balance margins with appeal

An article in BloombergBusinessweek (May 30, 2011 page 18) describes efforts by designers to balance the needs of designers, who want clothes to be appealing, with manufacturers who want to produce them and maintain margins. This tug-of-war has become even … Continue reading

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Uncoordinated Decisions by the US Energy department and supply chain impact

A New York Times article (May 28, 2011) describes one department selling the helium-3 gas as fast as the other department worked to build up stocks, thus creating a shortfall.  The gas is helium-3 that is cited as a “byproduct … Continue reading

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Japan’s Tsunami and global supply chain resilience

An article in the International Herald Tribune (May 30, 2011) describes the resilience of companies like STM Microelectronics, that has managed to maintain their global supply chain smoother than expected. A survey of supply chain managers analyzed by the Gartner … Continue reading

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Toyota’s quality focus and slow response ?

A recent report, written by respected outsiders, but commissioned by Toyota, claims that the attributes of stability and predictability, that create quality products, may be to blame for the slow response to customer complaints regarding brake pads or sudden unintended … Continue reading

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Volkswagen’s considers building the Audi in it’s US plant

An article in the Wall Street Journal (May 25, 2011) states that  US production enabled VW to drop prices for the Jetta by $ 8,000 thus enabling it to compete with Honda and Hyundai’s cars in the category.  In addition, … Continue reading

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