Let's Get Down to Business...

A Parable to Consider...

A Japanese company (Toyota) and an American company (Ford) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was that the Japanese team had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.

Decoding Toyota's DNA

Toyota's Production System is a paradox.

On one hand, it is rigidly structured with nothing left to chance. Every activity, connection and flow in a Toyota plant is meticulously studied and analyzed.

At the same time, Toyota's operations are remarkably flexible and responsive to customer demands. They're able to produce a wide variety of models and styles with no loss of efficiency. How do they do it?

More Pushing and Pulling

Choosing whether to "push" production or let it be "pulled" has all sorts of implications. 

The attachment describes an application of making one of those strategic choices.  I think you'll be surprised by it. 

The second page compares the two approaches by examining their core assumptions, methods and issues.  Organizing the ideas in this way is sometimes helpful.

• Download pushpull_strategies.doc 

How things get produced - Does it make difference?

Our seventh week looks at this question, "Do firms make things or assemble things?"

Is there a difference? Does it make a difference? Can inventories be interesting? The answers are, "Yes, Of Course, and Exciting beyond belief."

To get started, here's your weekly study guide. Download Seventh Week Study Guide

Feedback - Give it early and often

It's important that we communicate with one another about how you're doing in the course.  All too often, evaluations come at the end of a course when it's too late to make mid-course corrections.

How about doing things different and maybe better?

Here's a link to a Confidential Survey where you can give me some feedback on what's working or not working for you:  Click to Give Feedback

Your feedback is confidential.  I'm the only one who will see it.  Access to your feedback is password protected.

Your feedback can also be anonymous if you want.  If you want me to contact you, or know who you are, leave your name and how to contact you.  Otherwise, your feedback will be anonymous if you want it to be.

Let me know early and often how things are going.  Thanks for your help.

Should we Make what we Make or Buy what we Make?

The question asked in this Post's title may not, after first reading it, make much sense.  Don't worry, things will clear up.

For openers, it's an important question because its answer (if we can figure what it's asking) can make a big difference.  It's the same sort of question as, "Can a firm's capital structure make a difference?"  As we learned looking at Southwest Airlines, the answer is, "You bet!"

Before figuring out the question, and then what to do with the answers, here are my lecture notes and PowerPoint slides for the Production and Operations Management "story":

• Download production_management_week_7.ppt

Before getting to the main event, here are some things to look for in Chapter 9 of your textbook (Chapter 10 gets discussed separately in the Human Resources materials).