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Paintmakers are running out of the color blue

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Re: Paintmakers are running out of the color blue

#31

Post by jdlshore »

archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

I hear this complaint frequently, and I always wonder if the people making it are well-informed about supply chain logistics or are just parroting what they’ve heard elsewhere. Because my understanding of TPS and Lean is that it solved serious issues with supply chains involving waste due to outdated and rusted (figuratively and literally) inventory. It also doesn’t prevent the use of buffers to absorb shocks, as Toyota demonstrated in the first year of the pandemic.

Re: Paintmakers are running out of the color blue

#32

Post by imtringued »

archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

The problem isn't Toyota. It's that companies are so damn risk averse that they would rather have money in bank accounts rather than take a risk and keep producing too much even during a half year downturn.

Re: Paintmakers are running out of the color blue

#33

Post by archildress »

LurkingPenguin wrote: post #28
archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

Toyota actually isn't as JIT as you make it out to be, but that notwithstanding, what's the alternative? Stockpile 30 years' worth of Christmas ornaments in warehouses in Oklahoma, right next to the oil storage?

It’s almost as if there are happy mediums in between the two scenarios. :)

Re: Paintmakers are running out of the color blue

#34

Post by Workaccount2 »

imtringued wrote: post #32
archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

The problem isn't Toyota. It's that companies are so damn risk averse that they would rather have money in bank accounts rather than take a risk and keep producing too much even during a half year downturn.

I don't think it's risk aversion so much as it is "Parts on the shelf don't pay interest/dividends".

Re: Paintmakers are running out of the color blue

#35

Post by cascom »

imtringued wrote: post #32
archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

The problem isn't Toyota. It's that companies are so damn risk averse that they would rather have money in bank accounts rather than take a risk and keep producing too much even during a half year downturn.

Except that when companies do this, and then ask to be rewarded for making that investment, they are lambasted for price gouging or profiteering…just ask any hardware store that has sat on a pile of snow shovels through the summer in order to capture a premium price when a blizzard is approaching…

Re: Paintmakers are running out of the color blue

#37

Post by LurkingPenguin »

archildress wrote: post #33
LurkingPenguin wrote: post #28

Earlier quoted context omitted.

Toyota actually isn't as JIT as you make it out to be, but that notwithstanding, what's the alternative? Stockpile 30 years' worth of Christmas ornaments in warehouses in Oklahoma, right next to the oil storage?

It’s almost as if there are happy mediums in between the two scenarios. :)

2 years' worth of Christmas ornaments? 10 years' worth?

The amount of crap that we consume is astounding. And in many cases, each specific type of crap requires a bunch of smaller crap (components).

There is literally no way for a consumption-driven society as broad and deep as ours to stockpile years' worth of everything.

Re: Paintmakers are running out of the color blue

#38

Post by throaway46546 »

cascom wrote: post #35
imtringued wrote: post #32

Earlier quoted context omitted.

The problem isn't Toyota. It's that companies are so damn risk averse that they would rather have money in bank accounts rather than take a risk and keep producing too much even during a half year downturn.

Except that when companies do this, and then ask to be rewarded for making that investment, they are lambasted for price gouging or profiteering…just ask any hardware store that has sat on a pile of snow shovels through the summer in order to capture a premium price when a blizzard is approaching…

I agree price gouging laws lead directly to shortages. Take the recent toilet paper shortage. What is a more preferable outcome, not having toilet paper available or having to pay 4x as much for a roll? Because the latter is illegal we have empty shelves instead.

Re: Paintmakers are running out of the color blue

#39

Post by mzs »

jdlshore wrote: post #31
archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

I hear this complaint frequently, and I always wonder if the people making it are well-informed about supply chain logistics or are just parroting what they’ve heard elsewhere. Because my understanding of TPS and Lean is that it solved serious issues with supply chains involving waste due to outdated and rusted (figuratively and literally) inventory. It also doesn’t prevent the use of buffers to absorb shocks, as Toy…

Here's recent supply-chain thread calling-out a current bottle neck:

https://threadreaderapp.com/thread/1451543776992845834.html

https://twitter.com/typesfast/status/1451543776992845834

Re: Paintmakers are running out of the color blue

#40

Post by yunohn »

archildress wrote: post #26

Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand. After all, we'd rather have that cash in a bank account than tied up in inventory. While well intentioned, the problem is that it all relies on assumptions, largely tied to demand. And when demand goes through a wild whipsaw, and everyone takes d…

> Thank you Toyota and practitioners of "lean" / "Six Sigma" that told us all about the wonders of just-in-time, to only carry exactly as much inventory was needed for demand.

While Toyota might have popularized the concept, it seems odd to blame them for the common-sense idea of just-in-time.

It’s quite natural, normal humans also don’t hoard everything they can possibly think of needing, nor should companies. It’s eco-friendly to be JIT as it leads to less wastage; while optimizing for rare shortages will result in wastage all the time.

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