Dell shifts from Limerick to Poland. Check the link below
http://uk.reuters.com/article/UKNews1/idUKTRE5076PT20090108?pageNumber=1&virtualBrandChannel=0
This change is a continuation in the changing paradigm at Dell. For one it started selling computers through a third party (Walmart) last year. Dell has traditionally been strong in the B2B segment. The move to retail computers through Walmart was probably to take a pie in the individual consumer market. This decision could have been taken as Dell sees a reduced growth or stagnation in the B2B market.
In the individual consumer segment (home segment) the major differentiation is on price, except for Apple of course. This is forcing Dell to look at all possible sources to save money. This includes shifting to a different location and even getting more work done by its vendors. This is a new game for Dell. And like I had written in an earlier post, it is too early to say if Dell will thrive in this change.
Monday, January 12, 2009
Friday, January 2, 2009
modified JIT
The American media has never understood the Toyota Production System (TPS). Like I mentioned in the last post, by using "JIT" to denote TPS, an image has been created of an ultra efficient factory with 'zero' inventory and all supplies coming in small lots. Inventory is just one of the many wastes in TPS.
Check this link
http://www.bloomberg.com/apps/news?pid=20601101&sid=a67TdTDZscbQ&refer=japan
One more time an American newspaper is predicting a 'modified' JIT. They had done this about 18 months back when Japan had an earthquake and Riken, Toyota's key piston rings supplier had suffered extensive damages. The article predicts / prophesies that JIT will have to be modified as a lot of suppliers may shut shop. The tone of the article seems like a little kid who has always lost and sees a faint hope of getting back one.
America's automakers have never been able to match up to the Japanese. They tried superficial implementations without much success. All this seems to have hurt their ego a bit too much. The American press has always tried to belittle the Japanese systems and has quite often come up with predictions of the end of TPS. This article is nothing but one more such attempt.
The recession is sure going to force Toyota to change some policies. A few Japanese companies may also close. But, keeping extra inventory definitely does not mean a modification in JIT. JIT is more about an approach of continuous improvement and waste eradication. If the current nature of industry demands higher inventory than keeping it certainly would not go against the tenets of JIT/ TPS.
Check this link
http://www.bloomberg.com/apps/news?pid=20601101&sid=a67TdTDZscbQ&refer=japan
One more time an American newspaper is predicting a 'modified' JIT. They had done this about 18 months back when Japan had an earthquake and Riken, Toyota's key piston rings supplier had suffered extensive damages. The article predicts / prophesies that JIT will have to be modified as a lot of suppliers may shut shop. The tone of the article seems like a little kid who has always lost and sees a faint hope of getting back one.
America's automakers have never been able to match up to the Japanese. They tried superficial implementations without much success. All this seems to have hurt their ego a bit too much. The American press has always tried to belittle the Japanese systems and has quite often come up with predictions of the end of TPS. This article is nothing but one more such attempt.
The recession is sure going to force Toyota to change some policies. A few Japanese companies may also close. But, keeping extra inventory definitely does not mean a modification in JIT. JIT is more about an approach of continuous improvement and waste eradication. If the current nature of industry demands higher inventory than keeping it certainly would not go against the tenets of JIT/ TPS.
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