In March (2021), we noted that the raw material prices of some commodities (silicone, some papers & cartons, some batteries...) went up a lot. And some analysts predict a multi-year increase in raw material prices. Bloomberg came up with an interesting article on this topic -- When Does a Commodities Boom Turn Into a Supercycle?: A surge in commodity prices has Wall Street banks gearing up for the arrival of what may be a new supercycle -- an extended period during which demand drives … [Read more...]
Why Improving Quality Leads to Lower Manufacturing Costs
I am tired of repeating certain things over and over when I am in Chinese factories. One of them is this: If you work on improving quality, you will cut your costs at the same time if you follow the right approach. This is nothing new. As Deming wrote: Management in some companies in Japan observed in 1948 and 1949 that improvement of quality begets naturally and inevitably improvement of productivity. So, how can better quality lead to lower costs? What is the "right approach"? I listed 6 … [Read more...]