Saturday, September 29, 2007

India overtaking China in manufacturing?

There was a report by Capgemini that India is all set to to challenge China as the preferred destination for manufacturing outsourcing. The big 'if' is that government needs to work on and improve the existing infrastructure.

At some level, I do not think that this conclusion needs research. It is common knowledge. There is no difference of skill level among Indian and Chinese. The same manufacturing machines can be set up in either India or China. In addition, India has theoretical added benfits of being a democracy and having an active legal system.

Summary report on Capgemini site

News item on indiatimes

Friday, September 28, 2007

Blaming China

US companies have shamelesly imported material from India, China and other south east asian countries in flagrant violation of laws and ethics that they profess in their home state. Be it child labour, retirement plans, working conditions or wage parity; American companies have ignored everything to ensure that they get 'cheap' products.

Whenever things go wrong, American companies have had no problems in shifting the blame to these countries. It is very interesting that China has been able to arm twist Mattel to issue an apology saying that the recall were less of production and more of design issue.

See this link:

Outsourcing production or services does not absolve the parent company from responsibilities of the product adhereing to guidelines and regulations. It is immature and possibly dangerous for the outsourcing firms to blame their partners for lapse. Imagine, if Mattel customers reduce buying 'Madi in China' toys, Mattel as a company would suffer tremendous drop in sale!!

Monday, September 17, 2007

The new DELL

Dell enjoyed its supply chain excellence based direct selling model for many years. This year it has started selling PC's through Wal Mart and Sam's Club stores. This would be a new ball game for Dell, a game that Dell's competitors' (HP and Acer) have been experts at.

Dell is trying to target retail consumers and is faced with its first bout of problems. Rising customer service costs, maintaining dealer relations, rising product complaints (because of higher product variety), etc.

The article (link pasted below) does not point out solutions, only highlights the problems.


Its a new Monday morning....

This place would be for current and relevant information on Operations Management. Operations could actually mean anything today. But I will stick with a few things: Production, Supply Chain and Technology.

I do not intend to create new knowledge here. I intend to create links to the best material available and have a brief summary on it so that you can decide if its worth your time to study the entire article.

Wishing me best of luck!!!