Dumping your waste upstream isn’t LEAN — another view

Last month I wrote a post, “Dumping your waste upstream isn’t LEAN“, giving an example of how one large American company I know (and have left unnamed) has been bullying it’s vendors into accepting the costs of wasteful stocking in order to lower it’s own costs and leadtimes, while actually raising their own costs in less obvious but more significant ways.

This month, Bill Waddell of Evolving Excellence gives another example– none other than General Motors. Anyway, for another (more skillfully written) take on a similar issue, go to his post here.

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The Change Junkie

...left the USA for Taiwan and China in 1987. After more than 10 years in Taiwan working in business intelligence, international trade and quality consulting, he fell into a China-based position requiring a significant manufacturing turnaround in 2000.

The first Chinese manufacturing operation that he turned-around went through several transformations. First as a non-productive, unmanaged tenant in squalor, to a functioning plant with greatly improved output, to an ISO certified facility, to a LEAN/JIT manufacturing operation led almost entirely by local talent.

His second turnaround produced similar results. David has found a personal formula that brings the value out of a Chinese manufacturing operation where others were prepared to shut the operation down

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