Category Archives: Miscellaneous

Give Your Manufacturing a Lift

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Pneumatic lift-assistance devices can not only prevent back injuries, which account for one of every five workplace injuries or illnesses and cost businesses over 12 Billion annually, but they can increase productivity by 40%.

A recent article in Industry Week explained how there is “no more back breaking work” at 3M since it installed tailor-made pneumatic lift-assistance devices that were tailor made for lifting various pressure-sensitive rolls of consumer labels that can weigh up to 250 lbs. The installation, which eliminated lift-related injuries in the associated plant processes, noted that not only is productivity up 40%, but there is no problem with operator fatigue or repetitive motion injury … and an alert employee is a productive employee.

Furthermore, when you consider that a single injury can cost an employee 65,000 or more, it’s hard to argue against installing lift equipment that also increase productivity. So go for it … and give your manufacturing a lift (and then ask for cost reductions since you know you manufacturing will gain 40% productivity as a result).

A Procurement Professional’s Guide to International Assignments

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The experience and perspective gained through an international assignment is ever-more valuable in today’s global supply chains and increases a procurement executive’s marketability in the long run. But making an international assignment work requires a well-thought out plan and a lot of flexibility from everyone involved-employer, employee and family.

So what should you do if you are thinking of making such a move? A recent article in Purchasing, which attempted to be “a procurement professional’s guide to international assignments”, had some good starting tips.

  • Does your company have a support structure in place for the region being relocated to?
    For example, IBM has had an established program since the 1980s where employees considering an international assignment were sent to an orientation session that addressed tax implication issues, handling your house in the US, school and church options, etc. Then, there was a look-see trip for those still serious about the idea.
  • Will your family be able to integrate into the community?
    Will there be support groups to help your family when you’re at work and traveling for work?
  • Will you be close to your suppliers?
    Not only should that be the primary benefit to the company, but it should be the primary benefit for you … you should be able to visit your suppliers regularly and develop real relationships on a professional and personal level that will help both your company and you.
  • Is the language you speak spoken there?
    It doesn’t have to be the primary language of the region, but at least a subset of people should speak it commonly as a second language.
  • Are you interested in learning a new language?
    While it may not be a necessity, it will certainly make your life easier if you are willing to learn the basics and soak it in.
  • Can you talk to people who have made the move?
    Find out about their daily lives and if you will be able to relate to their experiences.

It also had a list of do’s from Associates for International Research:

  • ensure that your company has a formal set of policies and practices
  • visit the location prior to accepting the assignment
  • have a clear understanding of the financial implications
  • understand how daily living will be different
  • obtain a proper and complete Letter of Understanding
  • read the relocation policy in advance
  • take care of any major medical or dental needs beforehand
  • get an idea of the expected outcomes of the assignment
  • obtain details on the type of security and medical services that will be offered
  • have an understanding of the tax implications and your compliance responsibilities

Oil Prices Will Soar Again

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And it will happen sooner than you think. Are you ready?

A recent piece in Supply Chain Digest states that oil prices (are) set to soar according to Dr. Fatih Birol, the chief economist at the International Energy Agency, and Dr. Birol is right. About every decade we get a new peak, and the last two decades have seen faster boom and bust cycles. Plus, now that international shipping is now consuming 20% of all oil production, we’re not only draining reserves faster than expected, but getting close to the point where we will be consuming oil at full production capacity. There are only so many fields and so many rigs and we can only pump it so fast.

Now, I don’t think the “oil crunch” will start as early as 2010, primarily due to the fact that this recession is going to linger a little longer, but I do think we could see it as early as 2012, which, of course, will make the new age conspiracy theorists (or is that the true believers) squeal with delight, especially if it peaks at the end of the Mesoamerican (Maya) Long Count Calendar on December 20, 2012.

It’s not that unlikely, given that IEA’s recent assessment of over 800 major oil fields, that cover three quarters of the global reserves, found that most have already seen production peaks and that the rate of oil production decline is now running at nearly twice the pace that was calculated a mere two years aga. These are unsustainable levels, and with the lack of new exploration and development by the major oil companies, it is extremely likely we could see oil prices skyrocket within two years.

So, are you ready?

Supercalifragilisticexpialidocious … At Least One User Understands Decision Optimization!

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CAPS Research recently released their focus study on “the role of optimization in strategic sourcing” by Larry Giumipero and Philip Carter. I’ll dig into it in future posts (in the fall; I’ll let you enjoy what’s left of the summer before I get into the heavy stuff), but for now I’d like to say that I was thrilled to see this quote in chapter 9 on the future of optimization:

The vision is to push optimization to all buyers. The eventual goal is to run every item we buy through the system.

For those of you who are Christian, I urge you to shout Hallelujah from the rooftops! This is how it’s supposed to be. Every sourcing professional is supposed to be using decision optimization on every sourcing event … even if all they do is run an unconstrained scenario to understand what the lowest cost option is and how their preferred award stacks up. (While it’s okay to spend 10% more for 20% more value, unwittingly spending 20% more for 10% more value is not a smart move. Ever.)

I was also very pleased to see that at least one user thought that optimization could be used to optimize the entire supply chain (as it can) and that

We are always looking for international sources and new suppliers to run optimization.

Supercalifragilisticexpialidocious!