APICS Operations Management Now

The latest episode of HBO’s True Blood prominently features a supply chain risk management story line. It's clear that supply chain risk is making its way into popular culture.

Supply chain risk is everywhere. In 2011, outlaws stole about $1 billion worth of fuel from Mexico’s state-run oil company, Pemex. Meanwhile, in China, police seized about $182 million worth of fake drugs.

Recently released European sales figures for the first half of 2012 are dismal, reinforcing the severity of the euro-area crisis and the lackluster global economy. European automakers are facing the same tough choices as the American car industry in 2009.

Today the Olympic torch arrives in London for the 2012 Summer Olympics opening ceremonies. The ceremonies themselves are shrouded in secrecy, but one UK newspaper reports the show will include 10,000 performers, 70 sheep, 12 horses, 10 chickens, and more.

This week we mourn the passing of a legend among business writers—Stephen R. Covey, author of The Seven Habits of Highly Effective People. What Covey articulates in his writing usually is what we consider “soft skills,” but that doesn’t mean it is not important.

How can large, multinational corporations like Boeing and Airbus most effectively work with their suppliers, especially as suppliers’ challenges seem to swell? It's clear that supplier relationship management is an important, yet difficult, task.

Last week, the Drug Information Association (DIA) held its annual conference in Philadelphia, Pennsylvania. One of the highlights was a special town hall session on supply chain security, which APICS staff had the opportunity to attend.

Chances are you and your company are dealing with reverberations from the euro zone debt crisis right now. This economic climate puts European suppliers at risk, creating uncertainty throughout the supply chain.

Lowe’s is counting on new technologies, such as iPhones, to track inventory, improve customer service, and more. And an iPad app connects customers with goods, telling them where their desired product is and when it goes on sale.

This week, a Slate article highlights The Goal, by Eliyahu Goldratt, which proves that supply chain and operations management has gone mainstream. What is notable here is that now the general public can read about the theory of constraints.

India’s economic growth rate slowed to 6.5 percent in 2011–2012, its slowest in nine years. One major factor to blame: The country’s manufacturing sector, which actually contracted in the last quarter.

Today, workers reported back after a weeklong strike at Canadian Pacific Railway. But while service will be back to normal in 48 hours, it could take weeks for the backup of materials to get where they need to go.

We all want to make technology work for us in new and different ways. Where will most innovation soon take place? In social media or in traditional activities, including manufacturing?

While you may doubt that 3D printing will directly influence your work life, this revolutionary technology promises short- and long-term changes to fundamental manufacturing ideas, such as lean, scheduling, capacity, setup, and prototyping.

One sure sign of economic recovery is when companies struggle to fill open positions. Even as orders continue to go up, the pool of available, qualified workers stays at the same level.

Offshoring for many people used to mean manufacturing jobs moving to China. However, Chinese labor isn’t cheap anymore, and businesspeople now more than ever must consider the total cost of ownership.

Evonik makes 25 percent of the world's supply of Nylon 12. It also provides the necessary chemical building block to other makers of the resin. But after an explosion last month, a Nylon 12 shortage is threatening car manufacturing in a big way.

Combing through the news this week, I observed a theme. “Sony’s New CEO Vows to ‘Revive’ Company” appeared in theWall Street Journal [subscription needed]. “Best Buy Should Act Urgently to Repair Company,” was a headline on the MSNBC web site. Best Buy and Sony are at a crossroads. These once-venerable businesses are struggling to capture customers.

While Caterpillar once misjudged the scope of the recession, shrinking to ensure long-term survival, the company now "is emerging as the poster child for America's manufacturing renaissance."

Apple CEO Timothy Cook is using his supply chain and operations management expertise to address alarm about how Apple products are made. According to Sunday’s New York Times, Cook toured Foxconn, a Chinese manufacturer of Apple products, and a day later, the Fair Labor Association (FLA) condemned long work hours and low wages at Foxconn factories.