We compete with a number of other service providers, and over the years I have seen stark changes happen in some verticals. An interesting case study is the TIC (Testing, Inspection, Certification) industry. In 2005, importers were paying 500+ USD per man-day for QC inspections on consumer goods. Over the years, salaries and other costs went up, but the market price tended to go down. (I wrote before why some buyers always want a lower price.) What are the reasons? It is a combination of … [Read more...]
The Problem With Visual Management Boards in Factories
Visual management boards of some kind are now basically the norm in all factories belonging to a multinational group, so they must be effective, right? I'm not so sure. Not that they cannot be useful (they CAN be VERY useful), but, in most cases I have witnessed, these boards just aren't contributing as much to lean initiatives or process improvement as factory management would like them to be. … [Read more...]