Get Your Boots On!

The Toyota Philosophy has some many facets that you could, umm, write books about it.

Here is one facet that makes sense, but somehow the natural inclination is to discuss things in the conference room and not on the shop floor. From my old friend Wiki:

Genchi Genbutsu (現地現物) means "go and see for yourself" and it is an integral part of the Toyota Production System. It refers to the fact that any information about a process will be simplified and abstracted from its context when reported. This has often been one of the key reasons why solutions designed away from the process seem inappropriate.

Some stories about Toyota methods coming out of a conference in Kentucky:

At the Printing Industries of America Lean Conference in Lexington, Ky., a couple of weeks ago, I learned a new saying: “Get your boots on!” According to Mike Hoseus, co-author of “The Toyota Culture” and a former manager at Toyota Motor Manufacturing in Georgetown, Ky. (TMMK), this is how “genchi genbutsu” is affectionately known by the team members at TMMK.

We Knew This

No surprise here, the Bureau of Economic Analysis released the first quarter GDP data with some analysis:

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 6.1 percent in the first quarter of 2009, (that is, from the fourth quarter to the first quarter), according to advance estimates released by the Bureau of Economic Analysis. In the fourth quarter, real GDP decreased 6.3 percent.
The decrease in real GDP in the first quarter primarily reflected negative contributions from exports, private inventory investment, equipment and software, nonresidential structures, and residential fixed investment that were partly offset by a positive contribution from personal consumption expenditures (PCE). Imports, which are a subtraction in the calculation of GDP, decreased.

So, PCE was up?

Real personal consumption expenditures increased 2.2 percent in the first quarter, in contrast to a decrease of 4.3 percent in the fourth. Durable goods increased 9.4 percent, in contrast to a decrease of22.1 percent.
Non durable goods increased 1.3 percent, in contrast to a decrease of 9.4 percent. Services increased 1.5 percent, the same increase as in the fourth.

We are all waiting for the bottom to arrive. The slight increase in PCE was more than overwhelmed by real estate.

One interesting note, it looks like Federal expenditures have decreased in the first quarter as well?

Real federal government consumption expenditures and gross investment decreased 4.0 percent in the first quarter, in contrast to an increase of 7.0 percent in the fourth. National defense decreased 6.4percent, in contrast to an increase of 3.4 percent. Non defense increased 1.3 percent, compared with an increase of 15.3 percent. Real state and local government consumption expenditures and gross investment decreased 3.9 percent, compared with a decrease of 2.0 percent.

From Window Plant to EnergyEfficientWindow Plant

Remember the Republic Window factory near Chicago that was the site of a worker sit-in when they were told the plant would close immediately? Just before Christmas. The Chicago Tribune reports, "The new owner, Serious Materials, has started rehiring some of the more than 200 laid-off workers to make energy-efficient windows at the plant. "

Serious Materials CEO Kevin Surace said his company is creating the green-collar jobs the nation needs to pull itself out of recession. "Highly skilled manufacturing work like this is a triple win. It will save families money by helping reduce their energy use, protect our environment by reducing carbon emissions and create new paths for economic growth and energy independence," he said.

Oh yeah, and Vice President Biden showed up for the reopening. which is cool.
Good luck on the venture.

Outsourcing

The trend takes its ultimate conclusion


More American Workers Outsourcing Own Jobs Overseas

Plant Closing #22

An automotive supplier closes a plant in Wisconsin.

Thursday, TRW announced it will permanently close its manufacturing plant in the Village of Ettrick in Trempealeau County. Around 75 people work at the plant, which makes auto parts. The village president says the plant once employed around 300 people, which is more than half of Ettrick's population.

Spread across the U.S. and Canada are many small factories that were spawned in the manufacturing growth spurt following WWII. This recession is taking them out at a consistently high pace. AFTER the recession what will the landscape be like? Will all components be imported? Will only large corporations survive with central manufacturing? will there be room for new plants started by entrepreneurs?

In the New Economy is US Manufacturing More Competitive?

This article from the San Francisco Chronicle looks at the question.

About 18 months ago, a plastics factory in Santa Rosa started getting inquiries from small U.S. companies looking to bring some manufacturing back from China.
The inquiries to Wright Engineered Plastics started amid soaring oil prices. Even after oil went down, the interest continued as raw plastic became more expensive in China while the local firm's material costs dropped, helping offset the advantage of lower overseas labor.
"We're actually winning bids based on quoting prices, which is extraordinary," said Barbara Roberts, chief executive of Wright.

To what is the ability to win new business attributed?

Though still lower than in the United States, the Chinese advantage has been eroded by other costs like communications and transportation.

If you go to Japan you find large companies contract the tiered supplier work to many smaller local companies. The relationship and proximity count for a lot. Some benefits are quick reaction time, long term relationship and trust, and smaller focused suppliers.

I know from where I work that on the other side of this economy we will be leaner and quicker.

Not Official, but.... GM Closing Plants for 9 Weeks

This cannot be good. Rumors are circulating that GM will close their manufacturing plants for 9 weeks sometime this summer.

The reason? A combination of excess inventory and the pending bankruptcy.

What is already announced is severe enough:

ASSEMBLY - U.S.

• Arlington (Full Size SUV)
  Add down weeks of 5/11, 5/18, 5/25, 6/01, 6/08, 6/15, 6/22 and 7/6
• Bowling Green(Cadillac XLR / Chevy Corvette)
  Add down week of 7/13
• Detroit / Hamtramck (Buick Lucerne, Cadillac DTS)
  Add down weeks of 6/01, 6/08, 6/15 and 6/22
• Fairfax (Saturn Aura, Chevy Malibu)
  Add production week of 7/6 (2nd week of shutdown)
• Flint Assembly (Chevy Silverado, GMC Sierra) (HD Reg and Crew)
  Add down weeks of 5/11, 5/18, 5/25, 6/01, 6/08, 6/15, 6/22 and 7/6
• Ft. Wayne(Chevy Silverado, GMC Sierra) (LD Reg and Ext)
  Retime down week from 4/27 to 5/4
  Add down weeks 5/11, 5/18, 5/25, 6/01, 6/08, 6/15, 6/22, 7/6 and 7/13
• Lansing Grand River (Cadillac STS & CTS)
  Add down weeks of 5/4, 5/11, 6/1 and 6/22
• Lordstown(Chevy Cobalt, Pontiac G5)
  Add down weeks of 6/01, 6/08 and 6/15
• Pontiac Assembly (Chevy Silverado, GMC Sierra) (HD Ext.)
  Add down weeks of 6/1, 6/8, 6/15, 6/22, 7/6 and 7/13
• Shreveport (Chevy Colorado, GMC Canyon, H3 and H3T)
  Add down weeks of 6/15, 6/22 and 7/13
• Spring Hill (Chevy Traverse)
  Add down weeks of 6/8, 6/15 and 6/22
• Wilmington (Pontiac Solstice, Saturn Sky, Opel GT)
  Add down weeks of 6/15 and 6/22
• Wentzville (GMC Savana, Chevy Express)
  Add down weeks of 6/8, 6/15 and 6/22
  

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