Supply Chain and Logistics

Manufacturing’s next act

Posted on June 20, 2015 by just2bruce | Leave a comment

I had never heard the term Manufacturing 4.0. This McKinsey paper (from their blog) presents a good case for radical transformations in manufacturing.

Manufacturing’s next act | McKinsey & Company.

Some of these transformations are genuine business structure innovations, such as the software alliance that performs consulting for major companies. Some are not so new: auction marketplaces for outsourcing parts manufacture was tried in about 2000 by CommerceOne, and only became established in one or two indiutries (specialty chemicals and certain automotive and airplane parts). (The company failed.) Auction based purchasing and supply are only feasible when the suppliers have quite variable capacity they need to fill, and there is no differentiation among sources.

It also makes sense for production managers in any firm to become totally aware of the new technologies and processes, including those that are information based, that could impact their business. Firms will need to jump onto a technology fast when it reaches their industry, leaving no time for indecision.

The EPA Thinks Truckers Aren’t Doing Enough To Save Fuel – How Is That Possible?

Posted on June 20, 2015 by just2bruce | Leave a comment

I think this article is more about the role of regulation in producing sustainability. I’ve long maintained that sustainability must also be an economic benefit or it won’t happen. and that holds true for truck fuel consumption and emissions. The dollars at the pump won’t do it. Truck owners are just like car owners– they often tend to drive an older model for years rather than buy a new one. Remember ‘cash for clunkers’? An incentive is needed to get them off the road. And engine and truck manufacturers are not eager to change models too often because of the setup cost to change the model. So maybe the EPA is doing a good thing to get folks moving.