The discussion begins with skepticism about the benefits of bringing manufacturing back to America, highlighting automation's role. It contrasts this with Japan's success story, where human involvement refined processes. Key methods like Kanban and Andon are introduced as vital for efficiency. The conversation dives into challenges faced by American manufacturing, emphasizing the need for a collaborative workforce rather than just machines. Ultimately, embracing Japan's adaptive strategies could hold the key to reviving the U.S. manufacturing sector.
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Jobs and Foxconn
Steve Jobs moved Apple G3 iMac production to China despite automated Cupertino facility.
This book delves into the Toyota Production System, focusing on the Kanban method for inventory management. It explains how this 'just-in-time' approach minimizes waste and maximizes efficiency by synchronizing production with customer demand. The book details the practical application of Kanban, illustrating its impact on reducing inventory costs, improving workflow, and enhancing overall productivity. It also explores the cultural and organizational factors that contributed to Toyota's success. The principles discussed are applicable to various industries beyond manufacturing.
In a recent podcast Phil suggested that bringing manufacturing home to America won’t necessarily create jobs, because most factories will be automated. They just need one man and a dog, he said. The man to turn the machine on, and the dog to make sure he doesn’t touch anything else.
That touched a nerve with Brian Hanley has spent his life refining manufacturing processes. The key ingredient suggests, is people. Elon Musk was the latest to try the lights out approach and realised it didn’t work.
Instead, if the US wants to succeed with a competitive manufacturing sector, it needs to look to post-war Japan. Workers were an integral part of the refinement and adaptive nature of manufacturing processes, in part because of the company-based (rather than industry-speciifc) union structure. Listen in to find out how Japan’s adaptive approach is what’s needed if the US is to develop a successful manufacturing sector.
Two books related to this, that Brian says should be required reading or every economist:
- Kanban Just-in Time at Toyota by Japan Management Association
Debunking Economics - the podcast