Nov 102017
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Need Production and Manufacturing Training? Try these resources.

Fundamentals of Manufacturing Processes | MITx on edX

Production and Manufacturing Training Resources.

Oct 282017
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Caterpillar Supply Chain:  How to build a $2 million tractor

Caterpillar workers hand-build the 229,000-pound D11 tractor.

Supply Chain Training.

caterpillar supply chain

caterpillar supply chain

Caterpillar supply chain


Sep 022017
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Tesla Supply Chain – HOW IT’S MADE TESLA.

Only time will tell if the Tesla Supply Chain will become one of the best in the world.  This video takes you from the start of building the Tesla factory to all the innovations inside.    There are so many innovations happening with Tesla, both with their product as well as in manufacturing. We highly encourage people to research the Tesla Supply Chain.  The Tesla factory is one of the largest in the world.

Tesla Supply Chain Information and more.

Elon Musk Tesla Quotes:

  • “I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better. I think that’s the single best piece of advice: constantly think about how you could be doing things better and questioning yourself.”  ~ Elon Musk.
  • “If you’re trying to create a company. It’s like baking a cake. You have to have all the ingredient in the right proportion.” ~Elon Musk.
  • “Pay attention to negative feedback and solicit it, particularly from friends. hardly anyone does that, and it’s incredibly helpful.”  ~Elon Musk.
  • “It is a mistake to hire huge numbers of people to get a complicated job done. Numbers will never compensate for talent in getting the right answer (two people who don’t know something are no better than one), will tend to slow down progress, and will make the task incredibly expensive.” ~Elon Musk.
  • “I think the best way to attract venture capital is to try and come up with a demonstration of whatever product or service it is and ideally take that as far as you can. Just see if you can sell that to real customers and start generating some momentum. The further along you can get with that, the more likely you are to get funding.” ~Elon Musk.
  • “Don’t delude yourself into thinking something’s working when it’s not, or you’re gonna get fixated on a bad solution.” ~Elon Musk.
  • “Failure is an option here. If things are not failing, you are not innovating enough.” ~Elon Musk.
  • “I do think there is a lot of potential if you have a compelling product and people are willing to pay a premium for that. I think that is what Apple has shown. You can buy a much cheaper cell phone or laptop, but Apple’s product is so much better than the alternative, and people are willing to pay that premium.” ~Elon Musk.
  • “I would just question things… It would infuriate my parents… That I wouldn’t just believe them when they said something ’cause I’d ask them why. And then I’d consider whether that response made sense given everything else I knew.” ~Elon Musk
  • “I think it is possible for ordinary people to choose to be extraordinary.” ~Elon Musk
  • “The Supply Chain stuff is really tricky.” ~Elon Musk.  This was a quote regarding the Tesla Supply Chain.

Tesla Supply Chain

Tesla Supply Chain

Tesla supply chain Elon Musk



Aug 302017
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Tesla Gigafactory Grand Opening Elon Musk

Amazing video on the Tesla Gigfactory.  Tesla is bringing a great deal of innovation to its supply chain.

Supply Chain and Leadership Information.

Elon Musk Quotes:

  • “I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better. I think that’s the single best piece of advice: constantly think about how you could be doing things better and questioning yourself.” ~ Elon Musk.
  • I really do encourage other manufacturers to bring electric cars to market. It’s a good thing, and they need to bring it to market and keep iterating and improving and make better and better electric cars, and that’s what going to result in humanity achieving a sustainable transport future. I wish it was growing faster than it is.” ~ Elon Musk
  • “The revolutionary breakthrough will come with rockets that are fully and rapidly reusable. We will never conquer Mars unless we do that. It’ll be too expensive. The American colonies would never have been pioneered if the ships that crossed the ocean hadn’t been reusable.” ~ Elon Musk
  • “Obviously Tesla is about helping solve the consumption of energy in a sustainable manner, but you need the production of energy in a sustainable manner.” ~ Elon Musk.

Tesla supply chain



Aug 182017
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Deming’s 14 Points on Total Quality Management – TQM

  • “There is nothing so useless as doing efficiently that which should not be done at all.” ~Peter Drucker
  • “It is not necessary to change. Survival is not mandatory.” ~W. Edwards Deming
  • “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” ~Colin Powell
  • “Learning is not compulsory… neither is survival.” ~W. Edwards Deming
  • “Quality management is needed because nothing is simple anymore, if indeed it ever was.” ~Phil Crosby
  • “Quality is everyone’s responsibility.” ~W. Edwards Deming
  • “Excellent firms don’t believe in excellence – only in constant improvement and constant change.” ~Tom Peters
  • “If you can’t describe what you are doing as a process, you don’t know what you’re doing.” ~W. Edwards Deming
Jul 262017
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Toyota Supply Chain

Toyota Supply Chain is one of the best in the world. Toyota has long been benchmarked for their supply chain. Great video.

Toyota and Quality Quotes:

  • “Make your workplace into showcase that can be understood by everyone at a glance. In terms of quality, it means to make the defects immediately apparent. In terms of quantity, it means that progress or delay, measured against the plan, and is made immediately apparent. When this is done, problems can be discovered immediately, and everyone can initiate improvement plans.”   ~ Taiichi Ohno
  • “For much of Toyota’s history, we have ensured the quality and reliability of our vehicles by placing a device called an andon cord on every production line – and empowering any team member to halt production if there’s an assembly problem. Only when the problem is resolved does the line begin to move again.”  ~ Akio Toyoda
  • “When consumers purchase a Toyota, they are not simply purchasing a car, truck or van. They are placing their trust in our company.”  ~ Akio Toyoda
  • “The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements…But what is important is having all the elements together as a system. It must be practiced every day in a very consistent manner, not in spurts.”  ~ Taiichi Ohno
  • “We have to grasp not only the Know-How but also ‘Know Why’, if we want to master the Toyota Production System.”  ~ Shigeo Shingo
  • “Eighty-five percent of the reasons for failure are deficiencies in the systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better.”  ~ W. Edwards Deming

Supply Chain and Leadership Information.


Jun 242017
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Supply Chain Optimization

Supply Chain Optimization is key in making a supply chain organization more efficient and productive.  A company can use technology for optimization but don’t forget to improve processes as well.  Using technology to optimize processes may take awhile and will cost a significant amount of money.  Be sure to first look into ways to improve the current process by taking out wasted steps.  Also look into the process discipline of the organization so the information going into your supply chain system can be fully utilized for your supply chain optimization projects.

supply chain continuous improvement

Supply Chain Optimization Quotes

  • “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” ~ Bill Gates, founder and former CEO of Microsoft
  • “In many cases, jobs that used to be done by people are going to be able to be done through automation. I don’t have an answer to that. That’s one of the more perplexing problems of society.” ~ John Sculley, former CEO of Apple Computers
  • “For the blue-collar worker, the driving force behind change was factory automation using programmable machine tools. For the office worker, it’s office automation using computer technology: enterprise-resource-planning systems, groupware, intranets, extranets, expert systems, the Web, and e-commerce.” ~ Tom Peters
  • “SpaceX is only 12 years old now. Between now and 2040, the company’s lifespan will have tripled. If we have linear improvement in technology, as opposed to logarithmic, then we should have a significant base on Mars, perhaps with thousands or tens of thousands of people.” ~ Elon Musk
  • “The human being is a very poorly designed machine tool. The human being excels in coordination. He excels in relating perception to action. He works best if the entire human being, muscles, senses, and mind, is engaged in the work.”
    ~ Peter F. Drucker
  • “Excellent firms don’t believe in excellence – only in constant improvement and constant change.” ~ Tom Peters
  • “In Japan, a company worker’s position is secure. He is retrained for another job if his present job is eliminated by productivity improvement. W. Edwards Deming
  • “I have a great respect for incremental improvement, and I’ve done that sort of thing in my life, but I’ve always been attracted to the more revolutionary changes. I don’t know why. Because they’re harder. They’re much more stressful emotionally. And you usually go through a period where everybody tells you that you’ve completely failed.” ~ Steve Jobs, co-founder and former CEO of Apple Computers
  • “There might be new technology, but technological progress itself was nothing new – and over the years it had not destroyed jobs, but created them.”  ~ Margaret Thatcher
  • “Automation provides us with wondrous increases of production and information, but does it tell us what to do with the men the machines displace? Modern industry gives us the capacity for unparalleled wealth – but where is our capacity to make that wealth meaningful to the poor of every nation?”  ~ Robert Kennedy
  • “Computers are magnificent tools for the realization of our dreams, but no machine can replace the human spark of spirit, compassion, love, and understanding.”  ~ Louis Gerstner, fromer CEO of IBM

supply chain optimization

supply chain

supply chain optimization

supply chain optimization

Jun 072017
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Inventory Management

Inventory Carrying Costs associated with carrying inventory include:

  • Interest on Capital Costs – this is the largest component of carrying cost and is associated with money tied up.
  • Taxes & Insurance – insurance and taxes has to be paid on the current inventory.
  • Obsolescence & Depreciation – inventory obsolescence is a major issue with products with a short shelf life or lose value over time (computer products).  Companies involved with products that become obsolete quickly should be focusing on decreasing cycle times.
  • Storage – the cost associated with having a facility to hold the inventory.
  • Opportunity Cost – what could the capital be used for that is tied up in inventory.

Costs of running out of inventory:

  • Loss of customer/sale
  • Bad reputation
  • Disruption in supply chain


Carrying Cost = (Price per unit * Carrying cost percentage * Order Quantity in Units)/2


Average Inventory = EOQ/2 + safety stock


  • Demand is known and is constant

  • No quantity discounts


Reorder point = Estimated Demand * Lead Time

Inventory Management Training.

Inventory Management

Apr 212017
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What Is Inventory Management?

Here are the basics to inventory management.  Visit this LinkedIn discussion for further inventory conversation.

Inventory Management and Supply Chain Training.

inventory management