An Avoidable Manufacturing Failure?
Google announced in May that it has decided to close its Motorola Moto X smartphone plant. The Texas plant has been in operation for one year. Its smartphones will be manufactured in China and Brazil. One goal for this plant was to “…challenge conventional wisdom that manufacturing in the U.S. is too expensive.” But unit quarterly sales were so low that economies of scale could not be realized. Keeping manufacturing operations in this country... Read More
Avoiding a Common Manufacturing Problem
Otis Elevator’s costly move of its Mexican plant to its South Carolina plant is a common problem in manufacturing. Sadly it is an elementary, “Manufacturing 101”, process that seasoned manufacturing managers know how to avoid. Contrary to Otis’ reasoning that “…it was trying to do too much”. The principal cause was most likely that the “manufacturing fundamentals” were not accurate. This would include inaccurate bills of material... Read More
The Jaguar and Land Rover Turnaround
I was pleased to read the New York Times recent article “Tata Motors Finds Success in Jaguar Land Rover”. The article describes the turnaround of the troubled England based manufacturer of Jaguars and Land Rovers by Tata Motors an automobile manufacturer headquartered in India. Tata purchased the company from Ford Motor Company in 2008. The sad aspect of this story is that an Indian automobile manufacturer could fix and turnaround this complex... Read More
General Motors versus Toyota – who will win?
General Motors just reported a 41% reduction in its second quarter Net Income to $1.5 billion with a $1.8 billion decrease in Sales. The main source of the GM decline was its European operations. Its future results are questionable as USA sales forecast predicts declines. Both of which are understandable in this difficult economic environment. But, Toyota reported a huge increase for the same time period. Its Net Income was $3.17 billion on robust... Read More