"They ignored huge swaths of The Toyota Way, and created a system that's less effective and less resilient, but can impress shareholders through short-term savings." Sums it up in one sentence. Really great video!
Well it's not easy for companies to implement the toyota production system. When they decide to go that way, they usually take years in learning it from advisors. On the other hand, a less effective production system means higher prices, and taking away goods and services that everyone can afford from the poorer people.
I literally just pulled my copy of The Toyota Way Fieldbook off the shelf behind me. The processes work, yet I've seen many examples of people fighting the process.
It's basically a form of MBA Cargo Cult. None of these CEO's are worth the dirt it will take to burry them. They just monkey seed and monkey did with no understanding of what they were doing. And for that they get rewarded.
I've worked in mfg most of my life and every company I worked for tries to implement 5S, JIT, Lean Mfg etc. But the problem is a cultural one. In Asian society the kind of cooperation needed to implement these systems is taught and ingrained early on. In the US where the Individual is prioritized over the group it is too difficult to change the mindset, which is why these systems never fully get implemented correctly. This is a great video to explain supply chain basics to people. I don't think we will ever fix it but at least you can explain what went wrong.
@@nnakawatase5305 Asia is enormous. In Japan, where it was born, they have a different culture, yes, also a different education. They do, however, respect each other's individuallity to a bigger degree than any other western cultured I've expirienced. That's key to their success. Since they're 6 yo, they even go to school on their own, and noone messes with them. Also, school education is very different. Most of them don't even have janitors because they teach each kid to clean up after their own mess. They know what's their job, where it ends, and where the other begins, and their goal is to deliver their part of the job as good as they can, for a matter of principles and respect towards the next person in the work chain. There's a saying in japanese culture, unrestricted respect for the other one's life's project.
I knew from your title of the video that "Just in Time" manufacturing was going to be one of the causes you stated. I spent 26 years going between jobs in the air freight, ltl trucking, warehousing, and logistics industries and I saw "just in time" in action and just how customers got screwed up because they relied on it too much. I can't tell you the amount of times (it would definitely be over a hundred) I heard "we got to get it there because they're going to have to shut down a line if we don't". It's no wonder that during the covid crisis, that the problem would be exacerbated !
*exacerbated. Anyhow I bet some of your stories are legendary. I used to work with a machinist who recalled, in his youth, getting paid to ride his Suzuki 1000 at stupid speeds to take a simple chunk of carbide to meet up with a guy in a parking lot to keep a heavy equipment line rolling. These planners are sketch!
Also the irony when almost _nobody_ can get into the country but you’re holding a box boldly stating it’s from x overseas country. Deliveries yes, people no.
25 years in trucking and totally agree, People have no idea how quickly things will fall apart if those trucks stop rolling, The entire supply chain works on a absolute knife edge.
The main problem can be summed up in the statement you made at 17:40 - Constructing a resilient supply chain requires long-term thinking, but most companies have not nurtured an environment that allows for that.
And we’ve prioritized this thanks to the lack of foresight by shareholders. If they solely care about short term growth and revenue they’ll dig their own grave
They can't afford long term planning like that. It eats into short term profits, which would lower stock valuations, which would cause market recessions.
@FlyingMonkies325 blaming the government for this is like blaming a construction company for bulldozing your house after being foreclosed on by a bank, then purchased by a real estate company that wanted to put an apartment on your property lot. It's just the tool used.
17:26 - 17:33 is my favorite takeaway from this video. SO MANY people are only interested in short term gains, NEVER playing the long game, thats a life lesson. always play the long game. invest in yourself and be consistent so that you can adapt for changes when they inevitably happen.
If you play the long game you won't get your billion dollar bonus from the share holders. At the end of the day so many of our modern problem can be traced back to the demands of shareholders, they destroy a companies rationality in the blind pursuit of profit, they consistently act more unethical then their private counterparts and they are the driving cause of many economic crises
@@C1azed you can still give shareholders their earnings, itll be less, but more over time. still, playing the long game is the winner, this is in theory obviously, and we live in a non perfect world and ppl are generally greedy. but, if cards are played right and ppl in power can keep their egos in check, things can work out as they should 🤷🏻♂️
For the individual this *Absolute* is a dangerous line of thinking. You are never guaranteed tomorrow, But more then that you are likely just trading your youthful happiness for your aged happiness, effectively doing nothing, and shutting your self off to things you could have only done when you were young. Finding happiness not so easy. Balance is far more appropriate.
In that that case, it's really too bad that corporations are required to chase short-term gains, lest their investors not get richer, faster, constantly. If they feel like they could be making more money faster - short-term or not - they can simply demand things be changed. The way these companies run is beyond messed-up.
The supply chain version of living paycheck-to-paycheck. Get the flu and miss a few days of work. Paycheck is short. Overdraft fees hit further reducing your balance. Then the late fees kick in when overdrafts stop being covered. Skip the car payment to make rent. Borrow money from your cousin for the kid's school supplies. You'll catch up eventually. Maybe.
Worse even... A lot of these companies are more about finance than manufacturing. A lot of their income is based on borrowing to lend... And round and round it goes, for a while.
HOLY HOLY!!! I can proudly say that I have the two HOTTEST women on this planet as MY GIRLFRIENDS! I am the unprettiest UA-camr ever, but they love me for what's inside! Thanks for listening mx
I was a Materials and Demand manager for more than 30 years. When the JIT concept took over, the only thing my bosses would ever consider is practically zero safety stock regardless of demand fluctuation nor vendor/materials reliability. At the same time, they required perfect shipping on time. I spend my whole career in this pressure cooker. I wouldn't wish it on my worse enemy. I knew JIT was the reason behind the shortages as soon as they started happening.
Same here, I used to work for a major food retailer, from 1980s. It destroys farmers and farming. It destroys staff. It destroys the environment, and clogs roads too with lorries taking food to single distribution centres to then be taken across the country.
Every conspiracy post EVER : some guy saying he did some job and now he does not...just leaves comment on YT....smell the BS people..look thru the lines here. Martin was not a M and D manager for 30 years...he;s a fat kid in Toledo eating Cheetos and living in the basement. SMH kid
@@1Afattybombatty That's a decent rule of thumb I guess, but JIT's failings are not a conspiracy. Its negative impact on workers and infrastructure, and its fragility to market instability, is not only well-documented but is very clearly the cause of the current supply shortages that are empirically happening. In fact, it's so well understood that people who recognized what was happening were able to predict this effect at the very start of the pandemic. And you don't need to trust anyone's world to confirm this information, the raw data is available, sourced, and verifiable. Also, why would a kid have the pfp of a 50 year old guy hiking? Or lie about being in M&D? Hell, would even know that's a *job?* There's a guy in another thread blithering about how mass market bread has nutrients with the wrong electron count. Go after him
The boba tea thing is really funny actually, because in Australia a "make at home" boba tea company called "bubble tea club" popped up during covid as the two owners were layed off DUE to covid and said "screw it, why not?" and now they ship internationally lol.
"shortage of truck drivers in the US..." Yeah, working in that exact industry I can say there are more trucks on the road today than what was there 6 years ago, and the quality of driver and driver's ability has plummeted. I can also tell you that the increase in shipping costs aren't making their way to the driver. It's, as usual, "getting used up somewhere along the way".
I comment somewhat same from the East Coast. Truckers transporting goods overload the highways. One friend shook his head and said, "There's so much money to be made in trucking." The East Coast is alive with import exports coming in on cargo ships, trains, and big wheelers.
I work for a big name shipping company and we are having finding people to work in general, let alone drive trucks. The company is trying to innovate and offer more incentives to come to work, but it's still not enough right now. I don't remember seeing a shortage of labor like this in the 12 years that I've worked there.
@@matthewsmith9439 Biden is paying them to stay home with the extra $300 a week in unemployment payments on top of what you would normally get. Many leaders have pleaded him to stop but he won't. You haven't seen the creepy whispering he did last week? He told you right there what he is intentionally doing, he is forcing business to pay workers more. He is destroying our economy.
It's all deliberate....is the real answer. The old normal is being dismantled in front of our eyes under the guise of the kung flu. There's a new normal coming.....they keep telling us....it's just no one is listening.
"Less effective, less resilient, but can impress shareholders through short term savings." You just described pretty much every single company out there
I can’t believe he led with a seemingly obscure explanation of the boba supply chain back to Taiwan but then didn’t revisit the Taiwanese connection to semiconductor production dominance at the end of the video
It's cause it was about shifting blame from 'morbid greed" or "business efficiency" to happy logistic accidents. Like we shouldn't be grabbing pitchforks, cause we gotta understand. It's easy. You see the trash with everything screaming. You see the ones building and creating. Not the same. Took 17 minutes to finally point the problem out.
This is your greatest video so far. I am an economics professor and you have just summarized in 20 minutes what it would take months for students to learn in the classroom.
I'm glad I am not taking your econ class then. Covid is not directly the only thing responisble for these shortages. Everyone blames everything on Covid. I bought a fridge the other day and they didn't install it correctly bc "COVID" it is truly dumb
someones comment was deleted so ill ad what i can see of it "filmolosophy replied: He doesn't go into ANY detail as to why there's a trucker or worker shortage though. Horrible government policy paying people MORE money to sit at home unemployed is the origin for all of..." and there it is. Policy makers created this economic crisis/shortage. Very true in my opinion. People wanted to still work, until they were paid more to do nothing and what do ya know...we got a shortage of workers and therefore supply chain issues. Of course...that is not the entire reason. But this video completely ignores that and goes into minor detail over "not enough ports open for ships, not enough workers to fulfill orders" the economy could have still been moving if people weren't incentivised to stay home. This is evident when you go to your local fast food resturant and see the sign "We are not open during normal hours because no one wants to work for $10/hour when they could get $700/week from unemplyoment"
Studied Toyota's supply chain for a month this semester at university. Amazing how well they learned in 2011 to prevent (minimize) disruption down the road.
@@disunityholychaos7523 Supply Chain management. Huge career opportunities in it, if you want to learn more of what it entails is lean six sigma certifications. Most business schools have a supply chain management major. I study Management Information Systems that touches on those topics too, but not in as much detail
Great, you guys are studying it yet we still get caught with our pants down. Guess the only way to fix a problem is when it comes up and smacks you in the face.
I work at a paint store. We are seeing massive shortages of paint because of the winter storm in Texas back in February destroying many of the factories that produce the resins that go into a large percentage of the world’s top coatings. That storm I believe was considered a once in a hundred year event so the power grid and factories were never designed with it in mind. Honestly though a hundred years most definitely should be within the planning horizon of any city or engineer of any large facility. 100 year events are actually pretty common when you realize that no 2 events have any kind of predictable start and end points and that you will have to plan for multiple such events in the construction of any large facility. Snow storms, floods, solar flares, hurricane etc are all dangers to power grids for example and most certainly should be planned for and are likely to be seen much soon than 100 years when all of them are taken into account. Just like mentioned here, major disruption is inevitable and not planning for it can’t be an excuse.
Yep. A 100-year event just means that there's a 1% chance of the event occurring in any one year. And given the level of impact, I think even a 1% chance is worth preparing for. Not to mention that in a rapidly changing climate, those 100 year events are going to happen with shorter return frequencies.
Governor Abbott signed a law to winterize our power grid and the power companies screamed and cried and wailed and threw a lot of tantrums, and our power grid is still not winterized. And the Governor and Lt. Governor are not willing to start arresting these screaming infants that pass themselves off as CEOs to force them to obey the law.
Aha! I remember back in college, we learned about "Just In Time Delivery." And I remember thinking, "As soon as there's the slightest glitch in the supply chain, this is gonna result in disaster for some entire industry!"
and this all came about because some bright bulb with a degree in economics but no real world experince decide a company could cut cost by not stocking anything till it was needed
@@Hotspur37 Yep I work for a company who have consistently forced us to reduce stock levels of electronic components year after year for the last decade despite us pleading with them that it was a recipe for disaster should something go wrong. Delivery times from the far east were already 16 weeks when everything was ok. Did they listen to us? No. What's happened now? Our sales have plummeted despite demand being high because we can't get components. Now they are telling us to reduce our wage bill (fire people) "because you don't have sales", and apparently that's our fault too. Idiots with a textbook are dangerous.
Just in time is also used to schedule retail workers.., it's hell. Basically most of those jobs don't give you enough hours so you need two jobs, so add just in time scheduling to that and you have to scramble to fix the schedule yourself by begging for people to take shifts or give shifts, and then if you don't get enough hours to pay the bills you sit by the phone all of your free time praying for a phone call.... That's bullshit.
So, literally, everyone operating on short-term just-in-time delivery models compounded in every direction to ensure that the steady flow previously maintained and economies of scale previously enjoyed are now, themselves, liabilities.
jIT. Ah yes. It was always on the edge of disaster but US companies followed the Japanese model even though the US doesn’t have the same power & control over the industry
Something that I find ironic is that this model of continual flow manufacturing, where products are made and shipped in as small of a batch a possible to better facilitate quality and the economics of business, is a pretty new concept. Like, within the last 20 years or so new. It has existed before, but only got pushed recently over the previous style of batch manufacturing. I gotta wonder how much of this shortage-demic was due to a newer style of business that relys on a prefect functioning system to work.
Seriously, after this COVID disruption to supply chain issues (ie. lack of semiconductor chips), every country should have their own manufacturing facility to avoid supply disruptions. Canada should have their own manufacturing facility. Sure it may be more expensive (due to mostly labour cost), but it should ensure constant supply and less price fluctuations. The world cannot just rely on China and India to manufacture critical materials like medical supplies/medications and semiconductors.
Yea ,world would be a better place if we had MORE factories and every country can produce their own goods they need . But it is not how things work. People specialize
@@lovrovalentic3056 which makes sense in this globalized community but things like computer chips are pretty core to very significant parts of our society and right now its production is extremely centralized.
@Peter P the us is already doing this for semi conductors, as taiwan is about to get invaded, and in this case half of the world is going to crash, as its literally 90% of all semi conductors aka phones, cars computers and every electronic ever.
I’m a truck driver I’ve known this for awhile I tell everyone but but until you can’t get your bubble tea it’s not real lol most supply chains are very tight I see it everyday when customers are calling saying their line will shut down if I’m not there
I used to run logistics and this is SOOOO True. People would take 3 weeks to decide to purchase a piece of large equipment then want it in 3 days across the country. and then complain about the shipping cost
It seems similar to what happened to US food production at the start of lockdown. The food was there in the fields and the number of consumers was the same but there was no flexibility in the supply chain to divert food destined for the restaurant industry into retail.
@@nanszoo3092 what? people who sacrifice long term stability for unsustainable shor-term gains don't plan ahead & expect instant gratification? say it aint so
Told a dock manager one time a few years ago. “ You know one day you fellas are gonna regret this whole just in time scheduling thing” he berated me saying I don’t know what I’m talking about and just to drive my truck. Now he and most his staff are unemployed and I’ve got a very target rich environment of loads to pick and choose from. Guess I won that round.
It sounds like WORKERS are a valuable component to the existence of EVERYTHING. Maybe employers should schedule workers to work and actually pay them as if the worker matters.
Many friend that can't keep a job for 3 months because he is lazy is a truck driver. I make $28.65 an hour and been at my job 8 years. In that same time every job he moved to paid higher. Truck drivers get paid a very good wage for getting to sit all day in a AC vehicle and drive.
but workers are SUPPOSED to be exploited and used up in a capitalistic system. of course, a lot of people have realized in the last year that WE ARE BEING EXPLOITED. they are not going back to work for as long as they can hold out. if no one wants to work for you maybe you aren't paying enough. (not YOU, universal you).
It's fascinating that the auto industry had these problems recognizing which parts of their supply chain should be flexible and which shouldn't. Car construction today is based around identifying 'crumple zones', parts of the car that can flex and compact to absorb energy in a crash, around a rigid frame. Their supply chain is no different: some parts can flex and some must remain rigid for it to work.
So basically this is all started with Toyota and “just in time”, however, “just in time” was poorly copied and implemented by other companies elsewhere.
American companies tend to do things just to check the box. So a lot of corporations want to say they do things like Toyota but don't want to actually take the time to teach employees what that actually means (because that would be on the companies dime)
It all boils down to prioritising short term gains (profit for shareholders) at the expense of long term efficiency, just like everything else with the state of the world. Eat the rich
@@rafaelvazquez7465 So true, my father once worked as a sales manager for a company that made high impact plastic boxes and they insisted he educate himself on lean production and just-in-time systems on his own time, Thing is, the overall logistics of making high impact plastic boxes is pretty straightforward, your ingredients are just the raw plastic you form into the boxes and simple metal hinges and screws for the lids plus all orders are negotiated well in advance and in large quantities so its all a basic production line setup. So it was all a total waste of time, they just wanted to check that box on their project tables and make sure their execs and sales people would be able to sound trendy and authoritative when talking to customers and competitors at industry events.
All I saw in this video was Darwin's Law for natural calamity... and the few companies like Toyota have adapted quickly to the "waves" and just 'surfed' on it... rather than running away or hiding from it... which is naturally Humane, but also *HUMANLY STUPID LONGTERM* 🙁😑🥱
@@CaptRye i imagine two guys next to a post apocalyptic burn barrel and one guy is saying, "i consistently had 17% returns for 12 years, Gary. 17%!" while a rat runs away with their last piece of bread.
@@blakereader6661 But it remains to be seen for how long we can keep this up. The US and other countries took huge new debts and are printing money like crazy, which in turn will raise the inflation rate. And there are always talks about the bubble on the stock market that could burst any minute. A lot of uncertainties for the future. Lets hope they dont mess it up, i love my lifestyle and dont like to give it up lol
This is just so cool. I just started working at a Toyota Plant and everything mentioned on this video is thoroughly taught to every team member and reflected throughout the plant with logos and billboards. Keep pumping quality videos Wendover!
I worked at a Toyota plant too and did a lot of cross campus JIT deliveries. Their level of efficiency is just mind boggling. Hectic as hell for us assembly workers but darn impressive to witness from a business perspective.
Awesome feedback! The workable system (JIT) is known and learnable. Many people know it. US manufacturing leaders who don't understand this should get their MBA tuition reimbursed and then they should get fired for failing to learn what was so imminently learnable. They exposed their organizations to devastating risk through their own negligence.
Happy to see it at least got a mention that one of the keys to TPS was the elimination of rework/getting it right the first time. More companies should pay attention to this!
I live near Long Beach and can verify that to this day there are 50+ ships sitting in the water just off the coast at all times. They're just waiting in a big queue.
Maybe we should begin the opening of new ports. It seems that we are bottle necking imports but as the video pointed out. That is only one part of the problem.
meanwhile Bezos, Branson, Musk, etc. are wasting time on a personal space race instead of collaboratively building temporary docks, a system to redistribute shipping containers, etc. like they would've in WWII
Yup, I work for a small company that manufactures most of its own items. We constantly have issues with inventory because the production manager doesn't have the skills to analyze production data to keep shortages from happening. What's most frustrating is she refuses to educate herself on new systems/ways of doing things that could help eliminate shortages.
@toijg avnnr but it is the shortages that hurt the customers in the end. The government needs to mandate a level of inventory of key supply component inventory at all times for issues like this.
"Flawed implementation of the system." This is my life. Every day. Toyota's culture allows for continuous improvement over time, and allows for employee input on those improvements. This is a very flexible system called Kaizen. Working for a company that implemented Kaizen effectively and moving on to one that doesn't at all ... is very, very frustrating.
No kidding...I work at Intel where some of the factories I've worked in have tried to adopt some of the principles of Kaizen. It doesn't work if you adopt only some - you have to go all in or you end up just getting frustrated that your suggestions are ignored.
My employer only implemented the just in time aspect of lean. Without any of the other practices, we are constantly short on parts. Even when there isn't a pandemic.
@@dennismusch1623 Yeah... embarrassing. It's not like Engineers have EVER made a mistake... at least it was just a typo and not a Billion Dollar Project. XD
Blame the Republicans and Clinton Dems on this. Their polices stressed short term over long. If a CEO was to take a long term view, he'll soon be replaced. The reason is that they tied retirement to stocks, so pension funds and individual investors just look at quarterly returns. Wall Street, which manages said funds, are compensated on those results, and so on. So the funds control the board, they construct the comp package, and the package is tied to short term stock results.
Morbid greed or logistic Efficiency, different words same meanings. Cut their, save here, layoff there, and after trimming the fat they had no padding. Now we gotta bail them out? Now we gotta give em empathy and understand?
It was morbid greed the whole time. Everything in this shortage come down to "efficiency" aka morbid greed. Cut here, reduce here, layoffs there and bump then crash. Cause of greeeeeeeeed!!!!!!
They are amateurs who struggle with basic finance and economic concepts. Grab a textbook before relying on this ad generating algorithm. Seriously, it's entertaining but not at all reliable
@@TheTechiemoses Ig the problem is that you, as a company, can ill afford to not be greedy. If you aren’t greedy, you can’t have lower prices, if you can’t have lower prices, someone else will and you won’t have a company anymore, therefore you can only exist if you do this. It can be called a flaw in capitalism, but it’s really just a flaw with any large scale production. Since everything is necessarily large scale, no matter what system you choose, so long as it contains large scale and complex goods manufacturing, it’ll have this issue.
@@rashid8646 your right but that means is caused by presvese instevestevies in the system it's self which is a problem just one that's a lot harder to fix.
Best time to invest? thats funny tho because in the last four months I have lost more than $47,900 in stock market which is the biggest I have loss since I ventured into stock investment.
you could be right or wrong depends on your expertise, I once made such loss when i invested thinking i have gathered enough trading skills from youtube videos but now its a different ball game for me because I was lucky to have met "Tamara Diane Hagan", a financial manager and stock expert, I have made more than $165,000 in 6 weeks under her supervisions.
Really? people are cashing in from the stock market and frankly speaking its comforting seeing someone admit to the fact that they actually seek help from professionals. please how can i reach Tamara ?
As a trucker I just wanted to say there's no shortage of truck drivers, only a shortage of drivers willing to work for garbage pay. We're tired of working for the equivalent of less than federal min wage so a lot are quitting but I assure you that there are plenty of drivers still driving.
@@thomasbrown7728 I have done worse. I once worked for one of those companies that calls you to do (mostly political) surveys. I have also been a movie theater usher (wasn't a bad job but not something I'd do again), numerous call center customer service jobs. Trucking has been my best fit for pay and job enjoyment but we're definitely way underpaid considering the time away from home and actual hours worked (big brother only knows about the 70 clock, but not what we do off duty) plus the stress and horrible health conditions (sitting all day, very little time to exercise, etc).
@@bluemm2852 You know that most illegal immigration into the USA doesn't actually come through the southern border right? That you are just repeating nonsense that has long been debunked? Also that when the USA was at its strongest and paying decent wages the border was wide open and people crossed all the time. Its almost like you are aiming at the wrong enemy here.....
I can attest to the shortage of truck drivers. This has been a problem for over 5 years now. My friend's family runs a trucking business. The business is one of the most poorly-run businesses I have ever seen. They were on the brink of going out of business when the truck driver shortage happened. Now, even large companies such as Target and Gap are willing to put up with their tardiness and crap that would shut down an adequately-run business just to get their products shipped. This business once "forgot" a shipment for Forever 21 and missed the sale for Black Friday... Also, Walmart has been ramping up hiring truck drivers for awhile now. They have these semi-annual hiring sessions in the large parking lot in my city where they test you right then and there. Starting salary is over $90k.
All US business men want any profit in the next 24h ,, while wise business men thinking about long term,, in general US people has very short term memory
The "two ports" of Los Angeles and Long Beach are actually adjacent to one other and effectively operate as a single port complex -- even more of a bottleneck.
It's actually Port of San Pedro, not Port of Los Angeles. People used the name Port of Los Angeles to refer to both Longbeach and San Pedro to simplify letters of credit when boats showed up at the wrong one.
@@ernststravoblofeld If "by people" you also include the city of Los Angeles, then you are correct, but I don't think you meant that. San Pedro is part of LA. Saying the port is not in LA is like saying Wall Street is not in New York, but in Manhattan.
Yup, despite the fact that producing automobiles is nothing like producing Food goods or much else. Basically, every company that operates like this has almost every essential position performing the work of what should be 2 other employees along with their own work. No one in charge knows what they do or how they do it. These companies also typically have way too many high level managers, directors, vice presidents and C-Level employees that don't contribute much. LEAN right? These same companies probably had this toxic leadership element working from home throughout the entire COVID pandemic relying on the "Essential" employees to drive on and earn their bonuses for them. Now everything has to go back to the way things were because "Reasons". It's going to get worse, much worse with the coming inflation as well.
@CrazyMiles Being devout is one thing; that's good. But that doesn't mean that you have to push your beliefs on everyone at once. Let them have their beliefs, pushing is never the way to go when you want to change someone's beliefs; better to explain your own in a conversation with a smaller group of people where everyone can express their opinion properly and understand the others without getting too angry.
Just in time manufacturing sounds pretty much like the corporate equivalent of having your rent payment due on the same day you get paid, with absolutely zero money in your bank account. Works fine…until your paycheck is late/short.
Strange. My paycheck is never late. Any employer that delays paychecks is not a reputable one. However, there are times that I can't withdraw money thanks to ATM issues.
Actually, that's the interpretation that most companies had, but if you listen to the video, that's not how it's supposed to work. It's not a complete lack of inventory (or in the case of your example: cash in the bank), it's a lack of excess inventory - unneeded inventory that just takes up space. So instead of living paycheck to paycheck with an otherwise empty bank account, you have a cushion of money (maybe enough to pay your rent for one month, maybe more), just in case you have something go wrong and your paycheck doesn't cover your rent one month.
I work for a company that tried the just in time principal. They called it lean manufacturing. They were the largest employer in the northwestern Pennsylvania region. Almost 2,000 people just on the shop floor. Now, we are down to 80 people. They failed miserably implementing it. You said it perfectly. We mass produced parts that we needed to have in stock to stay afloat. Because they did away with inventory, we went under.
The “proliferation of scarcity” might be more accurately worded as “perceived scarcity”.... because they aren’t scarce... just mismanaged in many areas of supply chain.
we're gonna find out pretty soon how your hypothesis stands out. water, even though the world is covered in it, is on the verge a change in matter, it's gonna snowball so fast, it's already started, but guess what? no matter how rich anyone may be, when a specific time clicks past, our role will vanish as the rest of things do. extinction. what is pretty cool is we reached the end of an age, in knowledge (that wont help much,) but it's been pretty cool, compared to some that lived even 100 yrs ago. antibiotics and health care are going to round us all up at once, instead of 1/2 populations die offs that would have maybe allowed this train some more track to roll on.
@@buckwheat7424 If profound scientific breakthroughs/advances buy us/the planet some time, then there's hope until the next breaktrough and so forth and if we make it just in time for Transhumanism or should I say: Transcendance. Then we averted catastrophy... it's a long shot, but duable in theory. This generation doesn't give us much hope, but there's always that high IQ person (a Biological certainty) that will lead ahead and leap us forwards, even though surrounded by a mass of ignorance as it always have been; a few buying us time. When it comes to water, well that jury still out since we moved a bit on desalination process. Overpopulation is quite scary indeed, but we all eventually die. Numbers are in our favor now since this generation doesn't want kids or can't afford them (for us in the west), but of course that's another topic entirely.
Just finished a class in Lean Manufacturing for my Master's in Manufacturing Engineering, and your analysis of the problems with Pull Systems is SPOT ON. We mostly learned of the perfect picture of JIT manufacturing in this class, but having worked in Manufacturing for the past 7 years, I have seen a massive discrepancy in how Lean methodology is implemented in practice in the U.S. Great overview.
I did master's in industrial engineering. One of my professors said when lean manufacturing became a new thing ans everyone wanted to try it, that managers would just cut inventory in half without actually knowing what they were doing. He had a nickname for those people: Billy the MBA
it only works where it works... not very many workers are going to exercise before work like Japan.. unless they drop their cell-phone and have to pick it up...:/
Everything you learned in Lean manufacturing is garbage. Infact most of the shit you learned in college is garbage. "Those who can, do; those who can't, teach" Get your butt into a real job, and throw everything you learned in college out the window. Listen to the people who have been in the industry for a decade or more. The MBA's are the one's who have screwed up manufacturing in this country beyond belief.
The chip shortage was already very much real before Covid. The chip shortage started in 2017 with crypto miners buying up gpu's faster than they could be manufactured. Virtually every version of gpu sold out world wide. Manufacturers then tried increasing production at the same time that car manufacturers increased production, supply chains began to backlog, etc.
Hence Fry's going out of business I bet. They used to be good pre 2017 and we got reliable parts or built our own PC's from them. Now there is nothing like it around here. DON'T even say Best Buy. Please just don't.
@@kylehill3643 What about microcenter? I heard they were alright or maybe they're heading in the same direction? Is the general consensus for building a pc just to buy online?
@@GuyFromJupiter Best Buy is repeating the exact same mistakes that killed Radio Shack. Radio Shack used to be the go to hobby place, then it became a bad imitation of garbage cell phone store. Best Buy used to be the go to place for computers parts/accessories, movies, music and tvs. Now it's nothing more than poor implementation of an incompetent cell phone store with a small, overly priced appliance/tv side hustle.
@@TheJMBon I barely found out Best Buy had in store phone jammers. Couldn't use data inside to compared online prices of other competitors. It seems they're still alive because they meet the demand for people who prefer a physical store to check out electronics and non tech people. I thought about building a pc, but it's extremely stupid to buy a scalped gpu because who knows if the warranty is still valid. I guess it depends for each brand but I assume there needs to be a proof of purchase? Or is a serial number enough? If the the gpu is defective, the warranty customer service is in murphy's law territory. "Anything that can go wrong will go wrong" At least buy directly from the retailer if possible. The only choices I see are waiting maybe 2023 and further for demand to be met or a gaming laptop (for the desperate) from Costco because I read their service actually works.
A similar argument can be made about building maintenance and energy production. False profitability calculations being used to justify getting rid of maintenance staff or cleaning staff in favor of contractors with no vested interest in the company. Contractors often profit by ignoring a problem they recognize but aren't responsible for to increase costs.
My dad is a truck driver and gets $24,000-fluctuating a week including businesses, hauls lumber & palettes and more, he's a really good businessman. Needless to say, sitting on your ass for countless hours driving is tiring, even truck drivers working for the Union/Film industry got $3,000 a week. Pretty sure this applies to most jobs; people shouldn't be paid so little, especially because inflation over the years has already taken place and the wage barely goes up. Used to work in the Union until film industry in florida died and Scott doesn’t want to sign the bill.
It just highlights how these giant Corporations have so taken for granted their 3rd tier suppliers with JIT delivery that was never truly pressure tested for any major disruptions. Now these quarterly results, ROS-driven millionaires have $1,000 bills waiting on $0.10 cent parts sourced halfway across the globe with +12-18 month critical component lead times. Fantastic and costly debacle.
I worked in mechanical engineering, and I called this exact issue years ago. While in college we had professors explaining just-in-time principles and I pointed out how a single hiccup in the supply chain would cascade, and how it's passing the buck down the line. Run out of stock? blame your supplier for not delivering instead of your short sight in not keeping stock on hand.
The issue is that planning for hiccups can cost money and for most companies a risk worth saving money over due to events messing up the supply chains being extremely rare (i.e. a once in a lifetime pandemic like Covid 19). Companies really will try to cut every corner to save money.
I have enjoyed your videos, but this one was exceptional, and you explained a complex problem, about a multifaceted system, in such a straight forward way. Thank you. :)
If automotive would have just kept their future orders on the books, they would have been fine. But they panicked and cancelled them so semiconductor companies slowed down the lines and built far less. If auto companies would have just reduced orders, (mild adjustment) they would be in better shape. So it really wasn’t Just In Time as much as they panicked and broke the system.
@@bleckybob Actually while much information in this video is true an revealing, some of it is misleading. Just saw other video explaining how chip factories work. An order takes many months to process, even half an year. And sure, since the auto industries did not placed orders, it is obvious that the increased demand will create a shortage. But this does not explain the increased price for my graphic card. The stock for this card has no connection with the auto industry. Yes, they say that the chip industry is working now at full capacity, while before shortage was working at about half capacity. But if this is true, why all the other graphic cards have the same price as an year ago, and the most price performance card doubled in price? So the simple truth, is the price for card I chose has to do mainly with the amount of chips ordered for this precise card. No car industry fault, no bitcoin fault no iceberg fault. So, it may be true that some shortages and the inherent price surge are due some normal causes, few shortages are just bullshit propaganda to get some extra profit. As for the true cause of shortages, beside bad planning, and unpredictable events, is that people have too much money, and still make a pressure when they need their toy. So there is a shortage of lumber, that it, increased by 50 percent? I simply postpone my project. Or find other solution. I will not bet the price up to put in bad position one that have an emergency project. The guy with the roof peeled up for sure will pay 3 k more, but the one building a deck in front of the house should postpone. But yeah, he has a successful channel here and will pay. I really needed my card, my pc being 8 years old, was quite failing often, but I do not really needed that good card, so I passed, just took a cheaper one, with real price, not doubled. And Titanic sunk by iceberg? Some think that is was some financial trouble in that paradise, and some coal fire in those huge coal bunkers.... but who knows, it may be just fiction as much what we buy as truth even is just plain invention.
There are plenty of truck drivers. What's happening is these middle man companies that book the deliveries are undercutting the drivers to make more profit for themselves. The drivers can't take the trips if the pay is so low. The shortages are growing because nothing is moving.
Right! There were trips I had to pay myself to move freight to get to another load just to make money. In 2018. I sold my truck the market was crap. Now I don't drive anymore.
I EXPECTED that considering how many stories I hear over the years about how ugly truck company managers are. They all seem like fat pigs, screaming about costs of everything. They and Congress deserve pay cuts more than anyone else.
There's so many industries that have the capital to basically wait out the shortages as asset prices grow through regulatory capture or a higher capital investment. Meat and lumber are expensive and there's a "shortage" yet farmers and landowners don't get high prices for meat or lumber. The meat Packers and lumber mills can basically wait it out, and post record profits because who is going to build a sawmill? Or a meat packing plant?. If people are willing to buy meat or lumber at higher prices, why lower them? See, the cost of powdered milk never going down.
@@largol33t1 wait your saying that truckers need reduced wages? The companies that are moving freight are taking a huge hit. Owning and operating a truck is so expensive. Do it by yourself or as a large company they have huge amounts of money spent and have all the personnel to pay. The money it takes to ship goods isn’t near enough. We need more money for drivers to be willing to be gone so long. I lost my family over owning a truck because it wasn’t worth it. Too much time on road and stress on family financially and other issues. Trucks and drivers are expensive. Insurance etc as well. I know I used to drive. I had to get rid of my truck . Ruined my life. I’m trying to get back on my feet . That business is for people chasing a dollar and you can’t take it with you when your dead.
The truck driver shortage mentioned is NOT just a market phenomenon. The state of California passed the "anti Uber" law that inadvertently impacted independent truck drivers that move products from the ports in Los Angles and Long Beach to huge warehouses around Los Angles, which move from there to customers throughout America. Roughly 80,000 truck drivers were made ineligible to work in California almost overnight. A new emissions law passed at the same time required these independent drivers to spend upwards of $30,000 to comply with the new law. This caused a mass exodus of trucking resources to leave the state, holding the entire country hostage. Many of the container ships can be re-routed through the new Panama Canal expansion, but some of the largest container ships still must unload in California.
I've encountered many dumb-dumb self proclaimed "JIT/Toyota Production System/LEAN gurus" who take the philosophy as gospel, misapply it to the point where the company loses profits and LEAN becomes counterproductive...
This is the problem with a lot of paradigms you read out of a textbook. Some dolt with their MBA will think that the pretty arrows going around in circles are a ritual for success.
I've seen Kanban implemented at a number of companies. It works. Shortages happen and supply chains collapse, but the philosophy is still good, because even with companies that carried excess inventory, these problems still exist.
In the words of the Division trailer: “System is built on a global supply chain, that gets things where there needed ‘just in time’....created a house of cards. Remove just one and everything falls apart”
@@terrydaktyllus1320 I know, but I meant to like reference how they talked about the supply chain in that game. I’m not referring to the actual pandemic in the division
@@MisterEC1 Bailouts then are companies paying themselves more money? What the bloody hell happened to good old fashion capitalism where you lived or fell on your own success or failure?
@@kylehill3643 I'm no economist, but it seems like government is in bed with corporations and banks. The good Ole boys club? Freemasonry? Crony Capitalism?
Where I work we try to keep as much inventory as we can get away with. Spare parts for everything and spare parts for the spare parts, and as much consumables as we can fit in our storage, preferably all the time.
OK, I started watching this video thinking that I was going to blast it in the comments section because I thought it would over-simplify the problem. I was wrong. This was a well structured, thoroughly researched video concerning this very complex problem. Having worked in a manufacturing environment for 43 years, I compliment you on having hit every nail on the head...so to speak. I feared that the various implementations of "just-in-time" manufacturing that I had seen would fail eventually, that time came. I was lucky. I retired just a few years before it happened.
Same as me, I once worked in Japan and resigned before shit happened at my company. My old friend that worked together told me later that it was like hell at that time.
You think your retirement is safe and secure from a collapse of the current banking and stock market think again the time from 2021 to 2030 are going to be a reset of everyday life and “built back better” is what is to replace this current system. Which means loss of constitutional rights and no private property. Only essential businesses stay running and all oil industry goes away. Everything rationed for the population. Supermarkets won’t have enough to go around. The farms are already being destroyed in america
Not complex execute guilty politicians that orchestrated all lies imaginary new virus that is thousand year old flue affecting mostly retired seniors and terminally ill
Reminds me of that Tokyo Drift quote: "For want of a nail, the horseshoe was lost. For want of a horseshoe, the steed was lost. For want of a steed, the message was not delivered. For want of an undelivered message, the war was lost."
This is an old, old proverb, not a new quote from a screenplay. It's easy to find on Google, don't folks actually look up information anymore? We have access to it, why not spend a few seconds and avoid putting out incorrect information? I'd rather be slower and more precise than quick but erroreous.
Well China controls, what, like, 90% the rare earth elements. So yeah. I knowJapan struck a huge cache several years ago. But getting them into usable form takes several years.
I cant believe you made a video on buisness and manufactering, that I actually found interesting and watched to the end. Good job man that's a sub from me.
When governments offer Keynesian bailouts to companies that operate on a "one bad quarter from bankruptcy" philosophy, it makes it impossible for a responsibly run company to be competitive. Bailouts are the cause of future bailouts.
Also happen with Humanitarian aid. If done carelessly, gave out food for everyone will resulted in close down of all restaurants, leave people with no jobs, because you can't compete with free stuffs. Further reduce abilities for self-substainting, when no one has a job they'll need to rely on foreign aid forever.
Sounds like the US needs to work on more domestic manufacturing instead of relying on imports, among improving other redundancies in our own domestic supply chain.
That would require the political morons running the US to actually do something resembling their job, instead of securing book deals to make them millions. Sadly, you won't see anything like this being fixed in our lifetime :(
"Plastic resin can handle supply chain disruption", depends on the type of disruption. As a seller of plastic pipe in North America we've faced shortages all year. So much that we were told back in April/May that our manufacturers would not be able to take any new orders until the end of December. As for the flawed implementation of just in time inventory I've seen it first hand. One of our suppliers instituted it over 10 years ago when a new CEO cane in and it nearly ruined them. Impressive savings in the first few years made shareholders happy but delivery times for their products increased by 2x to 4x what they were historically. These products were critical components for water & sewer infrastructure and as the lead times got worse many customers went to competitors to solve the problem. Sales plummeted and they've spent the last decade fixing these problems and trying to restore their reputation.
Working for customer service for a retailer; I've learned that you can explain these current shortages to people and they seem to understand....until it happens to them. Once it's THEIR order that's delayed due to a shortage, it's all "I don't care about the shortages/stop making excuses, and get me my product NOW!"
@@jamieandrei You need a piece of sheet metal, some screws, metal shears and a drill. The only purpose of that HDD bay is to keep it from moving around/shaking due to the vibration. A strip of sheet metal bolted/screwed into any solid structure inside the case is more than sufficient. Total cost including tools will probably be cheaper and the work is done in maybe 10 - 15 minutes. Unless you're a millionaire it's probably worth the time. Doesn't match the color of the case? Sandpaper and paint have been invented.
WW2 American civilians detained by Japanese returned home confronted by a bunch of whining neighbors complaining of their RATIONS,yet didn’t want to hear how horrible it was for those who almost starved to death in the camps
Toyota saving up their chips reminds me of Ford getting a low-interest loan a year before the 2008 financial crisis. They had cash on hand, while all their competitors went bankrupt.
@Judith Chambers they took a handout from the government under the guise of making more green cars. They were bailed out just like every other automotive company, they were just scumbags and didn’t own their L. Matter of fact, none of those automakers didn’t take their L. The tax payers bailed them out and they said screw you and moved the majority of their production out of the US.
God damn that was a better explanation of fragility of supply chains than I could ever give to my friends who aren’t engineers. One guy tried blaming milk companies for farmers having to dump milk and I had to literally take him step by step in how milk is made and that it’s an extremely perishable product that is constantly being made regardless of if the manufacturer is ready or not.
Back in the late 90's there was this push for something called "In Time Delivery", everything from paper to bolts would be 'ordered and delivered' just as the supply at the factory was running low. That and the push to 'globalize' well, everything, set us up for massive shortages if something went south. Sadly, we're not likely to learn from this.
You just summed up about 2 semesters worth of intro BBA courses that I took in undergrad in ‘98 which explains this entire situation. It was the new revolutionary “Just In Time” inventory method. Taught with abandon as a way to significantly reduce overhead costs to increase profitability.
@@murryjm The company that I worked for in the 90's was a mid-sized global container/packaging manufacturer. Between that JIT policy and the pending ISO2000 stuff they were pushing for it got so our product lines would operate with a few days margin. That is, raw materials arrived, often the day or even night before the production was slated. Rolls of paper and bins of polymer came off the trucks and went straight to the printing or plastics departments for prepping, while those departs output would be sent straight to the tubers or extruders departments, which fed directly into sorting and packaging. From there they went to the loading docks, often right onto waiting trucks or containers. We 'might' have as much as a weeks supply of most materials stored up, but just as often as not, it was a few days. There were always hiccups. A broken machine, or a delayed shipment of raw material could cause delays all the way down the line. The floor managers were constantly juggling orders to keep the numbers up. At the end of the day, I could say that we still had several warehouses loaded with stuff. Raw materials, stuff waiting to be processed further, stuff half processed, stuff finished but customers had put holds on shipping. Often we'd have dozens of loaded trailers parked for weeks. Winter weather caused it's issues, so did bottle necks in shipping. The company had a sizable truck fleet. Trucks taking paper bags, plastic bags, boxes, corrugated, etc., would ship mostly to the east coast from Iowa, while raw material(mostly paper) shipped to us from the west coast. Waste product, mostly two ton bales of scrap paper, etc, got packed into shipping containers to be sent to china or east Asia. With these huge delays at the two ports we have out east for container ships, I suspect that this Just In Time method has f'd up a lot more then what we're seeing openly.
Oh, and that push to send as much production overseas as they have. I've said in other video stream commentary that when people say "Buy American" they fail to fully understand that very little is 100% made in the U.S.A. They need 'stuff and things' made overseas, as ingredients; as components; as packaging; as machines used to make them, etc. Lets look at something that should truly be American Made. American flags. Most are made overseas, and I think there's one American company that produces them, but I'd bet a weeks salary that if we were to look into their inventory and manufacturing invoices we'd find that needles, thread, even cloth, come from 'not American' sources, as do the parts to keep their machines running.
Ya same here as an autoworker. It's been in the back of my head the first time I heard it too. Think about the fast food industry. Fast food isn't as fast as it used to be. Why ? Because big franchises don't like throwing food away & honestly I don't blame them for it. But it has a consequence, you piss the customer off when you make them wait longer & then the next time they want something to eat, that same customer will go elsewhere.
Like the companies that used flawed meaning of Just-In-Time, you too my friend are blaming JIT instead of short sightedness and profit hungry philosophy of many companies. Like he said there's a difference between eliminating excess inventory and eliminating inventory all together
I would disagree with the statement “all over the world there is a proliferation of scarcity- “ I would say there is a proliferation of over consumption .
Who didn’t see that complete dependence on a fragile supply chain would cause issues. We’ve been standing on a house of cards for decades. Now, let’s talk about our utter dependence on an aging energy grid....
An aging entire infrastructure. The energy grid, the bridges, water lines, oil pipelines...everything is breaking down faster than it can be patched up because of decades of taking public funds away from infrastructure and spending them on special pet projects.
@@shaynecarter-murray3127 That's putting it nicely. What really happened was: THEFT. Outright theft, by crooked politicians, and people who are in positions of power to pull it off.
Dude who are you and how do you have the discipline to aggregate and then clearly present so much knowledge? I love your videos and have learned so much. Your topics are always on point. Thank you.
When I played Factorio, my production lines had buffer supplies in them, so that if for some unforeseen reason my production line shut down, the downstream factories would have a buffer of supplies that would last until I could get the production line up and running again. Production lines were always higher ramped than necessary to provide for the factory, so the buffer would fill until it was full, and the buffer size was set so that it was excess, but not a terribly large amount. Just enough to get by on during an emergency. It's sad when video game players are more familiar with proper supply chain logistics than the so called experts who do it for money. Hell we do this shit just for fun.
Well, factorio did not have office politics in it~ But I get your point, and would like to add another : executives should try playing simulation games to try new ideas.
@@bmanpura But that would require them to use of their time and time is money. And it would actually require them to learn and do their job properly to provide backups and engineering redundancy into their systems, which will take out of their precious profits. But hey, it is not like strategy sims teaches you about redundancy or anything
@FPK spot on! So many companies incorrectly predicted that the covid impact would be much worse than it actually was. As such they sold a lot of their safety stock for cash to keep the company alive and kicking for the long haul. That's where the safety stock went.
It was never "just in time" when a company is shipping goods from China to North America. That's a complete bastardization of the Toyota concept, as this video states so clearly.
As someone who worked for a Cruise company for the first (and last) time in Alaska during 2019, let me say I'm glad they're doing poorly. They treated both we employees and customers like trash, put both groups at risk during an epic wildfire season and pollute that beautiful State EVERY time they pull into port. While I understand Alaska needs tourism, there has to be a better way than Cruise lines who ruin everything they touch.
I work in one of those cruise towns and, while it really sucks for the town's economy, those ships try to squeeze as much as they can out of everyone. It's such a small area to accommodate over 10,000 people and they keep trying to figure out how to fit more.
A friend of mine was on a cruise (the Caribbean, not Alaska) and couldn't sleep. He went up on deck at 3 AM and witnessed workers tossing bags of garbage off the back of the ship. I wouldn't doubt that is standard procedure for most cruise lines.
I used to work at a Toyota supplier (not Toyota but a manufacturer who used their methods) in the US and they determined they would never be fully automated because the cost of machine maintenance would be higher than just paying people. They had people pushing the factory buttons, checking for defects, and doing rework, but they had machines doing the assembly.
Back when JIT manufacturing was becoming a "thing" I took a class in Japanese Management Techniques. At that time the basics of JIT were attributed to WWII. Japan's supply chains were severely disrupted by period air raids on factories. This made a classical production line techniques impractical i.e. it was strategically problematic to store large amounts of inventory on site. So production of parts was moved offsite, inventory was kept to a minimum and only what was needed was stored on site at the factory. This later became the basis of JIT supply chains.
@@RaitoYagami88 incorrect. Toyota credits Henry Ford but Ernest Kanzler who used JIT during the war effort. WWII was won by supply and logistics.and Japan was no where near the US in logistics. The only only reason the US did not fully adopt JIT and Kaizen techniques after the war was because the US was the major manufacturing player standing.
@@brokkrep I think it has something to do with panic buying. It appears Americans need to have ketchup with everything and is equal in value to toilet paper
The psychological concepts this video brings up are fascinating. Basically, we’re seeing the effect of a lack of delayed gratification, just in a much larger scale than the personal one we are used to. Humans are hard-wired to be bad at long-term planning/thinking
It's interesting to me. We as average people are addicted to short-term instant gratification. Twitter, Instagram, Tinder, fast food restaurants, etc. It's funny to me that this phenomenon in our personal lives, where we pursue the thing of the quickest possible gratification, is exactly what almost every major industry surrounding semi-conductors is doing. Short term efficiency to impress short term shareholders at the cost of sustainability.
@@Malohdek Exactly! And the weirder part is that we also tend to acknowledge this flaw! You won't meet a single human being that would disagree with the statement "prepare for the long-term," but we do it so rarely. I'd like to think that, were I a major shareholder of a company, I would be far more impressed with a long-term plan than one that just throws money into the coffers in the short-term.
@@andrewgochenaur5647 Amazon is the perfect example of how a shareholder playing the long game can pay off. For roughly a decade the company wasn't making any real profit, and now they are one of the most profitable companies on the face of the earth!
While the concept seems sound, I don't think all the world economists and corporation logistics departments failed to notice it. The fact is the supply web is just too complex to predict. Take the video's own example, the boba tea. There was no way anyone could predict the shortage of it. Like the video said, production of it in China was never disrupted, delivery was never disrupted. Basically, it is to the tea shops as plastic resin to the car industry. It wasn't essential to build excess. But supply chains are all connected, and disruption due to excessive port demand and global container shortage caused by other supply chains that were completely unrelated to boba tea led to its unpredictable disruption. As always said, hindsight is 20/20.
@Not Mymain Yes do that, and then you will be bitching about why a new iPhone suddenly costs twice the price, or why a new pair of Nike shoes now cost triple. Minimum wage in the US ranges from $8-$15/hour. While wages in China and developing countries can go as as low as 50 cents - $1 or $2 and hour. People who keep yelling “Bring jobs back to America” are going to be the first to bitch when they have to pay extra for electronics and household items.
@@Aliens1337 That doesn't have to happen, continue the minimum wage at 8 to 15, it's a fair number. But multi-million dollar CEOs are not. Cut their wages and everything can be manufactured here and still be affordable. Tah-Dah!
“Just in case” sounds less calculated than what Toyota does for risk management. It doesn’t violate the pillars of TPS to have inventory as long as it’s calculated and necessary (for the production process or risk mitigation or to level-load shipments/production), for example.
@@samuelgonzalez1891 and I’ve worked in Manufacturing and Engineering for Toyota for the past 20+ years. We don’t make cars with GM. No one said component parts aren’t made for various OEMs by Tier 2 suppliers, but that’s not what you said.
6:01 Was not expecting to see my hometown in this video. I'm so glad we've all cleaned up so much debris in the past year, it almost looks halfway normal now.
![Would You Fall for It? [ST08]](/img/n.gif)
"They ignored huge swaths of The Toyota Way, and created a system that's less effective and less resilient, but can impress shareholders through short-term savings."
Sums it up in one sentence. Really great video!
Well it's not easy for companies to implement the toyota production system. When they decide to go that way, they usually take years in learning it from advisors. On the other hand, a less effective production system means higher prices, and taking away goods and services that everyone can afford from the poorer people.
I literally just pulled my copy of The Toyota Way Fieldbook off the shelf behind me. The processes work, yet I've seen many examples of people fighting the process.
It's basically a form of MBA Cargo Cult. None of these CEO's are worth the dirt it will take to burry them. They just monkey seed and monkey did with no understanding of what they were doing. And for that they get rewarded.
I've worked in mfg most of my life and every company I worked for tries to implement 5S, JIT, Lean Mfg etc. But the problem is a cultural one. In Asian society the kind of cooperation needed to implement these systems is taught and ingrained early on. In the US where the Individual is prioritized over the group it is too difficult to change the mindset, which is why these systems never fully get implemented correctly. This is a great video to explain supply chain basics to people. I don't think we will ever fix it but at least you can explain what went wrong.
@@nnakawatase5305 Asia is enormous. In Japan, where it was born, they have a different culture, yes, also a different education. They do, however, respect each other's individuallity to a bigger degree than any other western cultured I've expirienced. That's key to their success. Since they're 6 yo, they even go to school on their own, and noone messes with them. Also, school education is very different. Most of them don't even have janitors because they teach each kid to clean up after their own mess. They know what's their job, where it ends, and where the other begins, and their goal is to deliver their part of the job as good as they can, for a matter of principles and respect towards the next person in the work chain. There's a saying in japanese culture, unrestricted respect for the other one's life's project.
I knew from your title of the video that "Just in Time" manufacturing was going to be one of the causes you stated. I spent 26 years going between jobs in the air freight, ltl trucking, warehousing, and logistics industries and I saw "just in time" in action and just how customers got screwed up because they relied on it too much. I can't tell you the amount of times (it would definitely be over a hundred) I heard "we got to get it there because they're going to have to shut down a line if we don't". It's no wonder that during the covid crisis, that the problem would be exacerbated !
Just in time shipping relies on perfect conditions, which as you know better than me, doesn't resemble reality 🤣
*exacerbated. Anyhow I bet some of your stories are legendary. I used to work with a machinist who recalled, in his youth, getting paid to ride his Suzuki 1000 at stupid speeds to take a simple chunk of carbide to meet up with a guy in a parking lot to keep a heavy equipment line rolling. These planners are sketch!
I had the same thought going into the video, although I don't have any experience in it yet
Also the irony when almost _nobody_ can get into the country but you’re holding a box boldly stating it’s from x overseas country.
Deliveries yes, people no.
25 years in trucking and totally agree, People have no idea how quickly things will fall apart if those trucks stop rolling, The entire supply chain works on a absolute knife edge.
The main problem can be summed up in the statement you made at 17:40 - Constructing a resilient supply chain requires long-term thinking, but most companies have not nurtured an environment that allows for that.
On the other hand, people realize they don't really need all the crap they think they do.
And we’ve prioritized this thanks to the lack of foresight by shareholders. If they solely care about short term growth and revenue they’ll dig their own grave
Hey, those quarterly reports have to look good for our shareholders!
They can't afford long term planning like that. It eats into short term profits, which would lower stock valuations, which would cause market recessions.
@FlyingMonkies325 blaming the government for this is like blaming a construction company for bulldozing your house after being foreclosed on by a bank, then purchased by a real estate company that wanted to put an apartment on your property lot. It's just the tool used.
17:26 - 17:33 is my favorite takeaway from this video. SO MANY people are only interested in short term gains, NEVER playing the long game, thats a life lesson. always play the long game. invest in yourself and be consistent so that you can adapt for changes when they inevitably happen.
If you play the long game you won't get your billion dollar bonus from the share holders.
At the end of the day so many of our modern problem can be traced back to the demands of shareholders, they destroy a companies rationality in the blind pursuit of profit, they consistently act more unethical then their private counterparts and they are the driving cause of many economic crises
@@C1azed you can still give shareholders their earnings, itll be less, but more over time. still, playing the long game is the winner, this is in theory obviously, and we live in a non perfect world and ppl are generally greedy. but, if cards are played right and ppl in power can keep their egos in check, things can work out as they should 🤷🏻♂️
For the individual this *Absolute* is a dangerous line of thinking.
You are never guaranteed tomorrow, But more then that you are likely just trading your youthful happiness for your aged happiness, effectively doing nothing, and shutting your self off to things you could have only done when you were young.
Finding happiness not so easy. Balance is far more appropriate.
In that that case, it's really too bad that corporations are required to chase short-term gains, lest their investors not get richer, faster, constantly. If they feel like they could be making more money faster - short-term or not - they can simply demand things be changed.
The way these companies run is beyond messed-up.
Every corporation has quarterly profits statement.
If you don't show profit, you are fired.
The supply chain version of living paycheck-to-paycheck. Get the flu and miss a few days of work. Paycheck is short. Overdraft fees hit further reducing your balance. Then the late fees kick in when overdrafts stop being covered. Skip the car payment to make rent. Borrow money from your cousin for the kid's school supplies. You'll catch up eventually. Maybe.
That is also how the whole economy works... Try to develop enough technologically before all the resources to do so run out... Maybe you'll catch up.
Yeah, this is the norm all over America. SNORT.
Worse even... A lot of these companies are more about finance than manufacturing. A lot of their income is based on borrowing to lend... And round and round it goes, for a while.
This is one of the most accurate analogy for the shortages i have ever heard.
Exactly analogy.
*Can’t get a graphics card*
Wendover: And I took that personally
HOLY HOLY!!! I can proudly say that I have the two HOTTEST women on this planet as MY GIRLFRIENDS! I am the unprettiest UA-camr ever, but they love me for what's inside! Thanks for listening mx
@@AxxLAfriku stfu
honestly man i just want a 3080
@@ryan_lmao Oh what a humble being you are. 😂
thats coz of all the scalpers
I was a Materials and Demand manager for more than 30 years. When the JIT concept took over, the only thing my bosses would ever consider is practically zero safety stock regardless of demand fluctuation nor vendor/materials reliability. At the same time, they required perfect shipping on time. I spend my whole career in this pressure cooker. I wouldn't wish it on my worse enemy. I knew JIT was the reason behind the shortages as soon as they started happening.
Same here, I used to work for a major food retailer, from 1980s. It destroys farmers and farming. It destroys staff. It destroys the environment, and clogs roads too with lorries taking food to single distribution centres to then be taken across the country.
LIES
Every conspiracy post EVER : some guy saying he did some job and now he does not...just leaves comment on YT....smell the BS people..look thru the lines here. Martin was not a M and D manager for 30 years...he;s a fat kid in Toledo eating Cheetos and living in the basement. SMH kid
@@1Afattybombatty That's a decent rule of thumb I guess, but JIT's failings are not a conspiracy. Its negative impact on workers and infrastructure, and its fragility to market instability, is not only well-documented but is very clearly the cause of the current supply shortages that are empirically happening. In fact, it's so well understood that people who recognized what was happening were able to predict this effect at the very start of the pandemic. And you don't need to trust anyone's world to confirm this information, the raw data is available, sourced, and verifiable. Also, why would a kid have the pfp of a 50 year old guy hiking? Or lie about being in M&D? Hell, would even know that's a *job?*
There's a guy in another thread blithering about how mass market bread has nutrients with the wrong electron count. Go after him
You're 100% correct.
The boba tea thing is really funny actually, because in Australia a "make at home" boba tea company called "bubble tea club" popped up during covid as the two owners were layed off DUE to covid and said "screw it, why not?" and now they ship internationally lol.
ah now I get it - ppl can stockpile boba kits & not disrupt their foodie supply chain! 🧋
"shortage of truck drivers in the US..." Yeah, working in that exact industry I can say there are more trucks on the road today than what was there 6 years ago, and the quality of driver and driver's ability has plummeted. I can also tell you that the increase in shipping costs aren't making their way to the driver. It's, as usual, "getting used up somewhere along the way".
I comment somewhat same from the East Coast. Truckers transporting goods overload the highways. One friend shook his head and said, "There's so much money to be made in trucking." The East Coast is alive with import exports coming in on cargo ships, trains, and big wheelers.
I work for a big name shipping company and we are having finding people to work in general, let alone drive trucks. The company is trying to innovate and offer more incentives to come to work, but it's still not enough right now. I don't remember seeing a shortage of labor like this in the 12 years that I've worked there.
@@matthewsmith9439 Biden is paying them to stay home with the extra $300 a week in unemployment payments on top of what you would normally get. Many leaders have pleaded him to stop but he won't. You haven't seen the creepy whispering he did last week? He told you right there what he is intentionally doing, he is forcing business to pay workers more. He is destroying our economy.
I think is is called companies maximizing their profits
It's all deliberate....is the real answer.
The old normal is being dismantled in front of our eyes under the guise of the kung flu.
There's a new normal coming.....they keep telling us....it's just no one is listening.
6 months from now we're going to see a video from Wendover titled "Why Every Rental Car in Alaska is a Toyota"
Thats a job for HaI
In a year they will be Toyota, because they buy in the Spring
Rental cars are always scarce here in Anchorage during the summer.
For the Record they are Subaru's.
It’ll be real life lore covering why every car in Alaska is a Corolla
"Less effective, less resilient, but can impress shareholders through short term savings." You just described pretty much every single company out there
Except for the cruise industry, as explained on their cruise industry covid video
Yup
Well, publicly traded companies anyways.
It’s ok to have some excess if you know that item it guaranteed to sell eventually. I’m learning this in retail stores.
The decline of Sears ought to be taught in every business school. Short term big cash grabs turn into long term catastrophes.
"A ruthless pursuit of short term profit, at the expense of long term gain is the cause". A truer statement has never been uttered!
I can’t believe he led with a seemingly obscure explanation of the boba supply chain back to Taiwan but then didn’t revisit the Taiwanese connection to semiconductor production dominance at the end of the video
It's cause it was about shifting blame from 'morbid greed" or "business efficiency" to happy logistic accidents. Like we shouldn't be grabbing pitchforks, cause we gotta understand.
It's easy. You see the trash with everything screaming. You see the ones building and creating. Not the same.
Took 17 minutes to finally point the problem out.
@@TheTechiemoses What the hell are you saying?
@@pbj4184 I agree lol
@@pbj4184 there is a balance to understanding the truth
RIGHT?!?! I was thinking the exact same thing... 🙄
This is your greatest video so far. I am an economics professor and you have just summarized in 20 minutes what it would take months for students to learn in the classroom.
And smashing the place up and/or burning it down doesn't help either.
I'm glad I am not taking your econ class then. Covid is not directly the only thing responisble for these shortages. Everyone blames everything on Covid. I bought a fridge the other day and they didn't install it correctly bc "COVID" it is truly dumb
someones comment was deleted so ill ad what i can see of it
"filmolosophy replied: He doesn't go into ANY detail as to why there's a trucker or worker shortage though. Horrible government policy paying people MORE money to sit at home unemployed is the origin for all of..."
and there it is. Policy makers created this economic crisis/shortage. Very true in my opinion. People wanted to still work, until they were paid more to do nothing and what do ya know...we got a shortage of workers and therefore supply chain issues. Of course...that is not the entire reason. But this video completely ignores that and goes into minor detail over "not enough ports open for ships, not enough workers to fulfill orders" the economy could have still been moving if people weren't incentivised to stay home. This is evident when you go to your local fast food resturant and see the sign "We are not open during normal hours because no one wants to work for $10/hour when they could get $700/week from unemplyoment"
Bullshit their are only bad teachers not bad students
@@mclovin9151 They could pay people a better minimum wage as they do in some European countries, a livable minimum wage.
Studied Toyota's supply chain for a month this semester at university. Amazing how well they learned in 2011 to prevent (minimize) disruption down the road.
what type of class is that business management? financials? (highschool new upcoming graduate here, trying to know the world better)
@@disunityholychaos7523 Supply Chain management. Huge career opportunities in it, if you want to learn more of what it entails is lean six sigma certifications. Most business schools have a supply chain management major. I study Management Information Systems that touches on those topics too, but not in as much detail
@@bufonrox Cool TIL, thanks for letting me know cheers!
Current supply chain management major here. Feel free to PM me if you have any questions about the field or want to chat on the topic!
Great, you guys are studying it yet we still get caught with our pants down. Guess the only way to fix a problem is when it comes up and smacks you in the face.
The archival footage of the factories in Japan is genuinely cool
So cool because from Japan. Jdm life. Anime is cool 😎. Piss off mate
I work at a paint store. We are seeing massive shortages of paint because of the winter storm in Texas back in February destroying many of the factories that produce the resins that go into a large percentage of the world’s top coatings. That storm I believe was considered a once in a hundred year event so the power grid and factories were never designed with it in mind. Honestly though a hundred years most definitely should be within the planning horizon of any city or engineer of any large facility. 100 year events are actually pretty common when you realize that no 2 events have any kind of predictable start and end points and that you will have to plan for multiple such events in the construction of any large facility. Snow storms, floods, solar flares, hurricane etc are all dangers to power grids for example and most certainly should be planned for and are likely to be seen much soon than 100 years when all of them are taken into account. Just like mentioned here, major disruption is inevitable and not planning for it can’t be an excuse.
Yep. A 100-year event just means that there's a 1% chance of the event occurring in any one year. And given the level of impact, I think even a 1% chance is worth preparing for. Not to mention that in a rapidly changing climate, those 100 year events are going to happen with shorter return frequencies.
but seems no one wants to pay to build infrastructure for those events, most people want a low electric bll
The iodine comes from middle of Oklahoma! 80% of production! It not in Texas!
@@Vmaxfodder Texas gotta maje it about themselves.
Governor Abbott signed a law to winterize our power grid and the power companies screamed and cried and wailed and threw a lot of tantrums, and our power grid is still not winterized. And the Governor and Lt. Governor are not willing to start arresting these screaming infants that pass themselves off as CEOs to force them to obey the law.
Aha! I remember back in college, we learned about "Just In Time Delivery."
And I remember thinking, "As soon as there's the slightest glitch in the supply chain, this is gonna result in disaster for some entire industry!"
Decades ago, when I heard of "just in time" deliver, I know some people were already calling it "late" delivery. :-)
Little did we know, it would be all the industries at once. 🤷♂️
and this all came about because some bright bulb with a degree in economics but no real world experince decide a company could cut cost by not stocking anything till it was needed
@@Hotspur37 Yep I work for a company who have consistently forced us to reduce stock levels of electronic components year after year for the last decade despite us pleading with them that it was a recipe for disaster should something go wrong. Delivery times from the far east were already 16 weeks when everything was ok. Did they listen to us? No. What's happened now? Our sales have plummeted despite demand being high because we can't get components. Now they are telling us to reduce our wage bill (fire people) "because you don't have sales", and apparently that's our fault too. Idiots with a textbook are dangerous.
Just in time is also used to schedule retail workers.., it's hell. Basically most of those jobs don't give you enough hours so you need two jobs, so add just in time scheduling to that and you have to scramble to fix the schedule yourself by begging for people to take shifts or give shifts, and then if you don't get enough hours to pay the bills you sit by the phone all of your free time praying for a phone call.... That's bullshit.
So, literally, everyone operating on short-term just-in-time delivery models compounded in every direction to ensure that the steady flow previously maintained and economies of scale previously enjoyed are now, themselves, liabilities.
jIT. Ah yes. It was always on the edge of disaster but US companies followed the Japanese model even though the US doesn’t have the same power & control over the industry
Something that I find ironic is that this model of continual flow manufacturing, where products are made and shipped in as small of a batch a possible to better facilitate quality and the economics of business, is a pretty new concept. Like, within the last 20 years or so new. It has existed before, but only got pushed recently over the previous style of batch manufacturing. I gotta wonder how much of this shortage-demic was due to a newer style of business that relys on a prefect functioning system to work.
liability for you.... advantage for who?.... figure out how the world works already...........
@@BW-fe8dq o9ooo9lo
@@insiainutorrt259 ?
Seriously, after this COVID disruption to supply chain issues (ie. lack of semiconductor chips), every country should have their own manufacturing facility to avoid supply disruptions. Canada should have their own manufacturing facility. Sure it may be more expensive (due to mostly labour cost), but it should ensure constant supply and less price fluctuations. The world cannot just rely on China and India to manufacture critical materials like medical supplies/medications and semiconductors.
@Peter P at this point they should do it for national security :/
Yea ,world would be a better place if we had MORE factories and every country can produce their own goods they need . But it is not how things work. People specialize
@@lovrovalentic3056 which makes sense in this globalized community but things like computer chips are pretty core to very significant parts of our society and right now its production is extremely centralized.
Countries aren’t designed to be independent anymore. Globalists have been imposing their will and have succeeded.
@Peter P the us is already doing this for semi conductors, as taiwan is about to get invaded, and in this case half of the world is going to crash, as its literally 90% of all semi conductors aka phones, cars computers and every electronic ever.
I’m a truck driver I’ve known this for awhile I tell everyone but but until you can’t get your bubble tea it’s not real lol most supply chains are very tight I see it everyday when customers are calling saying their line will shut down if I’m not there
I used to run logistics and this is SOOOO True. People would take 3 weeks to decide to purchase a piece of large equipment then want it in 3 days across the country. and then complain about the shipping cost
It seems similar to what happened to US food production at the start of lockdown. The food was there in the fields and the number of consumers was the same but there was no flexibility in the supply chain to divert food destined for the restaurant industry into retail.
@@nanszoo3092 what? people who sacrifice long term stability for unsustainable shor-term gains don't plan ahead & expect instant gratification? say it aint so
Every truck driver I know is smart as fuck.
I mean how did we survive without the exact same boba tea that we're used to? spoiled af, aren't we?
Told a dock manager one time a few years ago. “ You know one day you fellas are gonna regret this whole just in time scheduling thing” he berated me saying I don’t know what I’m talking about and just to drive my truck. Now he and most his staff are unemployed and I’ve got a very target rich environment of loads to pick and choose from. Guess I won that round.
Sometimes patience is beneficial.
The truth is you were both half right
you won the battle, but lost the war...remember that
It sounds like WORKERS are a valuable component to the existence of EVERYTHING. Maybe employers should schedule workers to work and actually pay them as if the worker matters.
Many friend that can't keep a job for 3 months because he is lazy is a truck driver. I make $28.65 an hour and been at my job 8 years. In that same time every job he moved to paid higher. Truck drivers get paid a very good wage for getting to sit all day in a AC vehicle and drive.
but workers are SUPPOSED to be exploited and used up in a capitalistic system. of course, a lot of people have realized in the last year that WE ARE BEING EXPLOITED. they are not going back to work for as long as they can hold out. if no one wants to work for you maybe you aren't paying enough. (not YOU, universal you).
@@margaretjohnson6259 wait till the govt runs out of money
@@margaretjohnson6259 or maybe they just don’t want to work. There are plenty of places that pay well and no one was even putting in applications.
@@mikerada2773 the jobs may be crap. most people don't want to make a career of working at dollar tree.
It's fascinating that the auto industry had these problems recognizing which parts of their supply chain should be flexible and which shouldn't. Car construction today is based around identifying 'crumple zones', parts of the car that can flex and compact to absorb energy in a crash, around a rigid frame. Their supply chain is no different: some parts can flex and some must remain rigid for it to work.
You hit it right on the head. Principles, principles, principles! Details differ, but principles prevail.
So basically this is all started with Toyota and “just in time”, however, “just in time” was poorly copied and implemented by other companies elsewhere.
American companies tend to do things just to check the box. So a lot of corporations want to say they do things like Toyota but don't want to actually take the time to teach employees what that actually means (because that would be on the companies dime)
It all boils down to prioritising short term gains (profit for shareholders) at the expense of long term efficiency, just like everything else with the state of the world. Eat the rich
@@rafaelvazquez7465 So true, my father once worked as a sales manager for a company that made high impact plastic boxes and they insisted he educate himself on lean production and just-in-time systems on his own time, Thing is, the overall logistics of making high impact plastic boxes is pretty straightforward, your ingredients are just the raw plastic you form into the boxes and simple metal hinges and screws for the lids plus all orders are negotiated well in advance and in large quantities so its all a basic production line setup. So it was all a total waste of time, they just wanted to check that box on their project tables and make sure their execs and sales people would be able to sound trendy and authoritative when talking to customers and competitors at industry events.
All I saw in this video was Darwin's Law for natural calamity... and the few companies like Toyota have adapted quickly to the "waves" and just 'surfed' on it... rather than running away or hiding from it... which is naturally Humane, but also *HUMANLY STUPID LONGTERM* 🙁😑🥱
the 2nd have of your comment is correct
The quarterly report has become the bane of humanity.
The millisecond price change and exchange of stocks and the executive payment through stocks has become the bane of humanity.
"Sure, we destroyed the world(economically and physically). But for a brief time (25+ years so far) we made incredible gains for the shareholders."
We are living in the most prosperous time in human history
@@CaptRye i imagine two guys next to a post apocalyptic burn barrel and one guy is saying, "i consistently had 17% returns for 12 years, Gary. 17%!" while a rat runs away with their last piece of bread.
@@blakereader6661 But it remains to be seen for how long we can keep this up. The US and other countries took huge new debts and are printing money like crazy, which in turn will raise the inflation rate. And there are always talks about the bubble on the stock market that could burst any minute.
A lot of uncertainties for the future.
Lets hope they dont mess it up, i love my lifestyle and dont like to give it up lol
This is just so cool. I just started working at a Toyota Plant and everything mentioned on this video is thoroughly taught to every team member and reflected throughout the plant with logos and billboards. Keep pumping quality videos Wendover!
I worked at a Toyota plant too and did a lot of cross campus JIT deliveries. Their level of efficiency is just mind boggling. Hectic as hell for us assembly workers but darn impressive to witness from a business perspective.
Awesome feedback! The workable system (JIT) is known and learnable. Many people know it. US manufacturing leaders who don't understand this should get their MBA tuition reimbursed and then they should get fired for failing to learn what was so imminently learnable. They exposed their organizations to devastating risk through their own negligence.
@@76MUTiger Nailed it. Beautifully said.
Happy to see it at least got a mention that one of the keys to TPS was the elimination of rework/getting it right the first time. More companies should pay attention to this!
I live near Long Beach and can verify that to this day there are 50+ ships sitting in the water just off the coast at all times. They're just waiting in a big queue.
Maybe we should begin the opening of new ports. It seems that we are bottle necking imports but as the video pointed out. That is only one part of the problem.
@@welshie2007 too bad they don't have job guarantees or accessible training
meanwhile Bezos, Branson, Musk, etc. are wasting time on a personal space race instead of collaboratively building temporary docks, a system to redistribute shipping containers, etc. like they would've in WWII
Wow! Maybe instead of silly political barking, media could discuss actual current events.
Why
I work in retail and see a lot of shortages mainly due to managerial incompetance.
That’s true. And you can’t put some orders according to your choice. They will send what they want to.
Yup, I work for a small company that manufactures most of its own items. We constantly have issues with inventory because the production manager doesn't have the skills to analyze production data to keep shortages from happening. What's most frustrating is she refuses to educate herself on new systems/ways of doing things that could help eliminate shortages.
@toijg avnnr but it is the shortages that hurt the customers in the end. The government needs to mandate a level of inventory of key supply component inventory at all times for issues like this.
Best answer here
Exactly!
"Flawed implementation of the system." This is my life. Every day. Toyota's culture allows for continuous improvement over time, and allows for employee input on those improvements. This is a very flexible system called Kaizen. Working for a company that implemented Kaizen effectively and moving on to one that doesn't at all ... is very, very frustrating.
That wasn't very kaizen thinking, moving to another company. 😜
No kidding...I work at Intel where some of the factories I've worked in have tried to adopt some of the principles of Kaizen. It doesn't work if you adopt only some - you have to go all in or you end up just getting frustrated that your suggestions are ignored.
Same goes with the company im currently working for. Coworkers have been discussing the kaizen principle but management doesnt want to listen..
My employer only implemented the just in time aspect of lean. Without any of the other practices, we are constantly short on parts. Even when there isn't a pandemic.
@@GeneralChangFromDanang Then just blame it on the buyer and planner, right? That's why there are always job openings on them.
WOW.... As a young engineer in collage, I remember learning all about JIT production... Now I can understand how things can go right, and go wrong.
an engineer that can't spell college.. boy we are in trouble.
@@dennismusch1623 Yeah... embarrassing. It's not like Engineers have EVER made a mistake... at least it was just a typo and not a Billion Dollar Project. XD
17:27 "A ruthless pursuit of short-term profit at the expense of long-term gain" That's it right there.
Blame the Republicans and Clinton Dems on this. Their polices stressed short term over long. If a CEO was to take a long term view, he'll soon be replaced. The reason is that they tied retirement to stocks, so pension funds and individual investors just look at quarterly returns. Wall Street, which manages said funds, are compensated on those results, and so on. So the funds control the board, they construct the comp package, and the package is tied to short term stock results.
I read this comment as he said it
@@youferrer But, now, the Commie Dems are controlling everything, .....I'm sure life is going to improve for everyone!
@@MrJm323 While the Republicans cut your pay and fill their own pockets.
"Just in case" morphed into "Just in time", now we are facing "Just too late"
Morbid greed or logistic Efficiency, different words same meanings.
Cut their, save here, layoff there, and after trimming the fat they had no padding. Now we gotta bail them out? Now we gotta give em empathy and understand?
To be followed by ‘too little, too late’
Oooh snap!
@@gumnaamaadmi007 to be followed by "Just the end"
@@TheTechiemoses We already bailed them out. The pharmaceutical corporations received billions to manufacture & sell the vaccine.
I was waiting for my favourite logistical specialist to tell me what’s going on in the logistical world.
It was morbid greed the whole time. Everything in this shortage come down to "efficiency" aka morbid greed. Cut here, reduce here, layoffs there and bump then crash. Cause of greeeeeeeeed!!!!!!
They are amateurs who struggle with basic finance and economic concepts. Grab a textbook before relying on this ad generating algorithm. Seriously, it's entertaining but not at all reliable
@@TheTechiemoses yes if only greedy consumers didn't prefer cheaper goods we wouldn't need these supply chains.
@@TheTechiemoses Ig the problem is that you, as a company, can ill afford to not be greedy. If you aren’t greedy, you can’t have lower prices, if you can’t have lower prices, someone else will and you won’t have a company anymore, therefore you can only exist if you do this.
It can be called a flaw in capitalism, but it’s really just a flaw with any large scale production. Since everything is necessarily large scale, no matter what system you choose, so long as it contains large scale and complex goods manufacturing, it’ll have this issue.
@@rashid8646 your right but that means is caused by presvese instevestevies in the system it's self which is a problem just one that's a lot harder to fix.
There might be an economical turmoil but there is no doubt that this is still the best time to invest.
Best time to invest? thats funny tho because in the last four months I have lost more than $47,900 in stock market which is the biggest I have loss since I ventured into stock investment.
you could be right or wrong depends on your expertise, I once made such loss when i invested thinking i have gathered enough trading skills from youtube videos but now its a different ball game for me because I was lucky to have met "Tamara Diane Hagan", a financial manager and stock expert, I have made more than $165,000 in 6 weeks under her supervisions.
Really? people are cashing in from the stock market and frankly speaking its comforting seeing someone admit to the fact that they actually seek help from professionals. please how can i reach Tamara ?
search her name on the internet to reach her
Shut up bot
One thing covid taught me, there is a lot I can live without. Want v need.
Politicians, media, gov't, etc.
This comment deserves more likes. Surprisingly, not enough have liked this most basic truth of modern human society.
FINALLY!!!! SOMEONE ELSE GETS THE POINT! SERIOUSLY, THANK YOU!!!
This is a basic part of capitalism even though most people don't understand it.
No spending = no jobs. Your frugality is costing jobs
As a trucker I just wanted to say there's no shortage of truck drivers, only a shortage of drivers willing to work for garbage pay. We're tired of working for the equivalent of less than federal min wage so a lot are quitting but I assure you that there are plenty of drivers still driving.
YEP,, I quit 2007, worst job I ever had.
@@thomasbrown7728 I have done worse. I once worked for one of those companies that calls you to do (mostly political) surveys. I have also been a movie theater usher (wasn't a bad job but not something I'd do again), numerous call center customer service jobs. Trucking has been my best fit for pay and job enjoyment but we're definitely way underpaid considering the time away from home and actual hours worked (big brother only knows about the 70 clock, but not what we do off duty) plus the stress and horrible health conditions (sitting all day, very little time to exercise, etc).
US drivers get a shitty stick, especially long haul.
This is why you need a secure southern border.
@@bluemm2852 You know that most illegal immigration into the USA doesn't actually come through the southern border right? That you are just repeating nonsense that has long been debunked? Also that when the USA was at its strongest and paying decent wages the border was wide open and people crossed all the time. Its almost like you are aiming at the wrong enemy here.....
I can attest to the shortage of truck drivers. This has been a problem for over 5 years now. My friend's family runs a trucking business. The business is one of the most poorly-run businesses I have ever seen. They were on the brink of going out of business when the truck driver shortage happened. Now, even large companies such as Target and Gap are willing to put up with their tardiness and crap that would shut down an adequately-run business just to get their products shipped. This business once "forgot" a shipment for Forever 21 and missed the sale for Black Friday...
Also, Walmart has been ramping up hiring truck drivers for awhile now. They have these semi-annual hiring sessions in the large parking lot in my city where they test you right then and there. Starting salary is over $90k.
They still hold pretty strong on their years required, but they're one of the best trucking companies out there.
This might be your best video yet, it's definitely the one I feel the most personal passion in.
Thanks for this, I run a boba shop in Texas and now I can show customers this video instead of trying to explain why we lack ingredients and supplies.
I just wanted some tapioca
now I learned something about Toyota
Fuck I'm late for work
Where is your boba shop?
"It's a philosophy, not an equation" is such a great way to also get to the meat of the difference between Japanese and American businesses
All US business men want any profit in the next 24h ,, while wise business men thinking about long term,, in general US people has very short term memory
Having worked in an American based japanese country let me tell you there is *so* much more different between our work philosophys it's crazy.
@@MudakTheMultiplier Would you care to elaborate? I find this very interesting
@@lynx2 me too
.
The "two ports" of Los Angeles and Long Beach are actually adjacent to one other and effectively operate as a single port complex -- even more of a bottleneck.
It's actually Port of San Pedro, not Port of Los Angeles. People used the name Port of Los Angeles to refer to both Longbeach and San Pedro to simplify letters of credit when boats showed up at the wrong one.
I was really trying to figure out where Port of LA was… lol. Thanks.
@@ernststravoblofeld If "by people" you also include the city of Los Angeles, then you are correct, but I don't think you meant that.
San Pedro is part of LA. Saying the port is not in LA is like saying Wall Street is not in New York, but in Manhattan.
i didnt know they were that close, i live in long beach, and i thought the port of LA was a completely different facility, thanks!
@@lrdxgm he didn't say it's not in LA, he just said that "port of Los Angeles" isn't it's name.
I've learned so much about supply chains, the work force and human nature. Thank you, Wendover Productions
The Toyota concept is known as “LEAN” in the industry, almost every company I work with is trying to replicate/implement it in their production
More with Less
becomes
Everything with Nothing
at college, this is what they taught us too but i never learned it in simple words as sam made it out to be lol
Yup, despite the fact that producing automobiles is nothing like producing Food goods or much else. Basically, every company that operates like this has almost every essential position performing the work of what should be 2 other employees along with their own work. No one in charge knows what they do or how they do it. These companies also typically have way too many high level managers, directors, vice presidents and C-Level employees that don't contribute much.
LEAN right?
These same companies probably had this toxic leadership element working from home throughout the entire COVID pandemic relying on the "Essential" employees to drive on and earn their bonuses for them. Now everything has to go back to the way things were because "Reasons".
It's going to get worse, much worse with the coming inflation as well.
@@shauncalton815 Best comment. I agree completely.
And failing miserably in regards to doing it properly
I don't call these videos, I call them "procrastinator logistical support"
Türk 🙀
😅🤣😅🤣😅, this is way too accurate
Nice XD
I second it
@CrazyMiles Being devout is one thing; that's good. But that doesn't mean that you have to push your beliefs on everyone at once. Let them have their beliefs, pushing is never the way to go when you want to change someone's beliefs; better to explain your own in a conversation with a smaller group of people where everyone can express their opinion properly and understand the others without getting too angry.
Just in time manufacturing sounds pretty much like the corporate equivalent of having your rent payment due on the same day you get paid, with absolutely zero money in your bank account. Works fine…until your paycheck is late/short.
And then when your house's owner doesn't get their rent check, they are now without income for the month...
Strange. My paycheck is never late. Any employer that delays paychecks is not a reputable one. However, there are times that I can't withdraw money thanks to ATM issues.
Same way the whole economy works.. No economic growth / no-one is taking out loans = crash.
#JESUS FIRSTt Jesus Is Love And The Way And Truth And Life And The Only Way To Be Saved Through The Creator Of All Things To Jesus Be The Glory
Actually, that's the interpretation that most companies had, but if you listen to the video, that's not how it's supposed to work. It's not a complete lack of inventory (or in the case of your example: cash in the bank), it's a lack of excess inventory - unneeded inventory that just takes up space. So instead of living paycheck to paycheck with an otherwise empty bank account, you have a cushion of money (maybe enough to pay your rent for one month, maybe more), just in case you have something go wrong and your paycheck doesn't cover your rent one month.
I work for a company that tried the just in time principal. They called it lean manufacturing. They were the largest employer in the northwestern Pennsylvania region. Almost 2,000 people just on the shop floor. Now, we are down to 80 people. They failed miserably implementing it. You said it perfectly. We mass produced parts that we needed to have in stock to stay afloat. Because they did away with inventory, we went under.
The “proliferation of scarcity” might be more accurately worded as “perceived scarcity”.... because they aren’t scarce... just mismanaged in many areas of supply chain.
It's a bit of both imo.
If the products are not on the shelves, then it is reality, and scarcity.
we're gonna find out pretty soon how your hypothesis stands out. water, even though the world is covered in it, is on the verge a change in matter, it's gonna snowball so fast, it's already started, but guess what? no matter how rich anyone may be, when a specific time clicks past, our role will vanish as the rest of things do. extinction. what is pretty cool is we reached the end of an age, in knowledge (that wont help much,) but it's been pretty cool, compared to some that lived even 100 yrs ago. antibiotics and health care are going to round us all up at once, instead of 1/2 populations die offs that would have maybe allowed this train some more track to roll on.
@@buckwheat7424 If profound scientific breakthroughs/advances buy us/the planet some time, then there's hope until the next breaktrough and so forth and if we make it just in time for Transhumanism or should I say: Transcendance. Then we averted catastrophy... it's a long shot, but duable in theory. This generation doesn't give us much hope, but there's always that high IQ person (a Biological certainty) that will lead ahead and leap us forwards, even though surrounded by a mass of ignorance as it always have been; a few buying us time. When it comes to water, well that jury still out since we moved a bit on desalination process. Overpopulation is quite scary indeed, but we all eventually die. Numbers are in our favor now since this generation doesn't want kids or can't afford them (for us in the west), but of course that's another topic entirely.
@Sam Ling indeed and im not taking the vaccine
Just finished a class in Lean Manufacturing for my Master's in Manufacturing Engineering, and your analysis of the problems with Pull Systems is SPOT ON. We mostly learned of the perfect picture of JIT manufacturing in this class, but having worked in Manufacturing for the past 7 years, I have seen a massive discrepancy in how Lean methodology is implemented in practice in the U.S. Great overview.
I did master's in industrial engineering. One of my professors said when lean manufacturing became a new thing ans everyone wanted to try it, that managers would just cut inventory in half without actually knowing what they were doing. He had a nickname for those people: Billy the MBA
it only works where it works... not very many workers are going to exercise before work like Japan.. unless they drop their cell-phone and have to pick it up...:/
@@poisonpotato1 That reminds me of the book, “The Goal”.
Everything you learned in Lean manufacturing is garbage. Infact most of the shit you learned in college is garbage. "Those who can, do; those who can't, teach" Get your butt into a real job, and throw everything you learned in college out the window. Listen to the people who have been in the industry for a decade or more. The MBA's are the one's who have screwed up manufacturing in this country beyond belief.
The chip shortage was already very much real before Covid. The chip shortage started in 2017 with crypto miners buying up gpu's faster than they could be manufactured. Virtually every version of gpu sold out world wide. Manufacturers then tried increasing production at the same time that car manufacturers increased production, supply chains began to backlog, etc.
Hence Fry's going out of business I bet. They used to be good pre 2017 and we got reliable parts or built our own PC's from them. Now there is nothing like it around here. DON'T even say Best Buy. Please just don't.
@@kylehill3643 What about microcenter? I heard they were alright or maybe they're heading in the same direction? Is the general consensus for building a pc just to buy online?
Fry's had other issues, i think, and the trade war was part of what brought about the end.
@@GuyFromJupiter Best Buy is repeating the exact same mistakes that killed Radio Shack. Radio Shack used to be the go to hobby place, then it became a bad imitation of garbage cell phone store. Best Buy used to be the go to place for computers parts/accessories, movies, music and tvs. Now it's nothing more than poor implementation of an incompetent cell phone store with a small, overly priced appliance/tv side hustle.
@@TheJMBon I barely found out Best Buy had in store phone jammers. Couldn't use data inside to compared online prices of other competitors. It seems they're still alive because they meet the demand for people who prefer a physical store to check out electronics and non tech people.
I thought about building a pc, but it's extremely stupid to buy a scalped gpu because who knows if the warranty is still valid. I guess it depends for each brand but I assume there needs to be a proof of purchase? Or is a serial number enough?
If the the gpu is defective, the warranty customer service is in murphy's law territory. "Anything that can go wrong will go wrong"
At least buy directly from the retailer if possible. The only choices I see are waiting maybe 2023 and further for demand to be met or a gaming laptop (for the desperate) from Costco because I read their service actually works.
A similar argument can be made about building maintenance and energy production. False profitability calculations being used to justify getting rid of maintenance staff or cleaning staff in favor of contractors with no vested interest in the company. Contractors often profit by ignoring a problem they recognize but aren't responsible for to increase costs.
There is no shortage of truck drivers. Never was ...there is a shortage of truck drivers that work for 2000$ a month
My dad is a truck driver and gets $24,000-fluctuating a week including businesses, hauls lumber & palettes and more, he's a really good businessman. Needless to say, sitting on your ass for countless hours driving is tiring, even truck drivers working for the Union/Film industry got $3,000 a week. Pretty sure this applies to most jobs; people shouldn't be paid so little, especially because inflation over the years has already taken place and the wage barely goes up. Used to work in the Union until film industry in florida died and Scott doesn’t want to sign the bill.
What are you talking about? Who wouldn't want to do long, tiring hours for a wage that can't even pay their rent??? Choosy beggars if you ask me.
slave wages for most in trucking. I am happy with my pay by the HR driving job. never go back to pay by the mile.
Transportation will migrate to AI with zero accidents, ultimate efficiency and no more texting, stupid aggression and gridlock.
This is how capitalism works, it sets a value on your time, etc. Communism is ran by the workers for the actual people not the 1%
It just highlights how these giant Corporations have so taken for granted their 3rd tier suppliers with JIT delivery that was never truly pressure tested for any major disruptions. Now these quarterly results, ROS-driven millionaires have $1,000 bills waiting on $0.10 cent parts sourced halfway across the globe with +12-18 month critical component lead times. Fantastic and costly debacle.
In the future, many books will be written about the failures that occurred during this pandemic.
The chip suppliers today are telling Ford, GM, and C-F to go eff themselves.
#JESUS FIRSTt Jesus Is Love And The Way And Truth And Life And The Only Way To Be Saved Through The Creator Of All Things To Jesus Be The Glory
@@nc4tn Need more silicon to mine Dogecoin.
I worked in mechanical engineering, and I called this exact issue years ago. While in college we had professors explaining just-in-time principles and I pointed out how a single hiccup in the supply chain would cascade, and how it's passing the buck down the line. Run out of stock? blame your supplier for not delivering instead of your short sight in not keeping stock on hand.
Maybe they should have been professing mechanical engineering instead 🤷♂️
JIT: The Planned Hiccup. Nothing happens Organically
The issue is that planning for hiccups can cost money and for most companies a risk worth saving money over due to events messing up the supply chains being extremely rare (i.e. a once in a lifetime pandemic like Covid 19). Companies really will try to cut every corner to save money.
I have enjoyed your videos, but this one was exceptional, and you explained a complex problem, about a multifaceted system, in such a straight forward way. Thank you. :)
If automotive would have just kept their future orders on the books, they would have been fine. But they panicked and cancelled them so semiconductor companies slowed down the lines and built far less. If auto companies would have just reduced orders, (mild adjustment) they would be in better shape. So it really wasn’t Just In Time as much as they panicked and broke the system.
They didn't panic. This economic destruction is deliberate in every way.
@@annehedonia156 Correct answer.
Spare semis take up a lot less space than spare axles.
Global economic crashing is manufactured and is meant to push us towards a one world currency, and a one world government. Keep your eyes out
@@bleckybob Actually while much information in this video is true an revealing, some of it is misleading.
Just saw other video explaining how chip factories work. An order takes many months to process, even half an year. And sure, since the auto industries did not placed orders, it is obvious that the increased demand will create a shortage.
But this does not explain the increased price for my graphic card. The stock for this card has no connection with the auto industry. Yes, they say that the chip industry is working now at full capacity, while before shortage was working at about half capacity. But if this is true, why all the other graphic cards have the same price as an year ago, and the most price performance card doubled in price? So the simple truth, is the price for card I chose has to do mainly with the amount of chips ordered for this precise card. No car industry fault, no bitcoin fault no iceberg fault.
So, it may be true that some shortages and the inherent price surge are due some normal causes, few shortages are just bullshit propaganda to get some extra profit.
As for the true cause of shortages, beside bad planning, and unpredictable events, is that people have too much money, and still make a pressure when they need their toy.
So there is a shortage of lumber, that it, increased by 50 percent? I simply postpone my project. Or find other solution. I will not bet the price up to put in bad position one that have an emergency project. The guy with the roof peeled up for sure will pay 3 k more, but the one building a deck in front of the house should postpone. But yeah, he has a successful channel here and will pay.
I really needed my card, my pc being 8 years old, was quite failing often, but I do not really needed that good card, so I passed, just took a cheaper one, with real price, not doubled.
And Titanic sunk by iceberg? Some think that is was some financial trouble in that paradise, and some coal fire in those huge coal bunkers.... but who knows, it may be just fiction as much what we buy as truth even is just plain invention.
"You can't blame the fact that your house is sinking on the fact that you built it on the ocean"
Sam, The nation of the Maldives would like a word...
I read this comment at the exact time he said it in the video. freaky
That's why we keep building it upwards until a tower of Babel situation happens
Maldives: "You're right, we are sinking, F in the chat bois"
@@sil8127 I read your comment right after hearing the previous comment in the video
That reminds me of Wendover’s video on Marshall Islands
There are plenty of truck drivers. What's happening is these middle man companies that book the deliveries are undercutting the drivers to make more profit for themselves. The drivers can't take the trips if the pay is so low. The shortages are growing because nothing is moving.
Right! There were trips I had to pay myself to move freight to get to another load just to make money. In 2018. I sold my truck the market was crap. Now I don't drive anymore.
I EXPECTED that considering how many stories I hear over the years about how ugly truck company managers are. They all seem like fat pigs, screaming about costs of everything. They and Congress deserve pay cuts more than anyone else.
There's so many industries that have the capital to basically wait out the shortages as asset prices grow through regulatory capture or a higher capital investment.
Meat and lumber are expensive and there's a "shortage" yet farmers and landowners don't get high prices for meat or lumber.
The meat Packers and lumber mills can basically wait it out, and post record profits because who is going to build a sawmill? Or a meat packing plant?.
If people are willing to buy meat or lumber at higher prices, why lower them?
See, the cost of powdered milk never going down.
@@largol33t1 wait your saying that truckers need reduced wages? The companies that are moving freight are taking a huge hit. Owning and operating a truck is so expensive. Do it by yourself or as a large company they have huge amounts of money spent and have all the personnel to pay. The money it takes to ship goods isn’t near enough. We need more money for drivers to be willing to be gone so long. I lost my family over owning a truck because it wasn’t worth it. Too much time on road and stress on family financially and other issues. Trucks and drivers are expensive. Insurance etc as well. I know I used to drive. I had to get rid of my truck . Ruined my life. I’m trying to get back on my feet .
That business is for people chasing a dollar and you can’t take it with you when your dead.
Greed.
The truck driver shortage mentioned is NOT just a market phenomenon. The state of California passed the "anti Uber" law that inadvertently impacted independent truck drivers that move products from the ports in Los Angles and Long Beach to huge warehouses around Los Angles, which move from there to customers throughout America. Roughly 80,000 truck drivers were made ineligible to work in California almost overnight. A new emissions law passed at the same time required these independent drivers to spend upwards of $30,000 to comply with the new law. This caused a mass exodus of trucking resources to leave the state, holding the entire country hostage.
Many of the container ships can be re-routed through the new Panama Canal expansion, but some of the largest container ships still must unload in California.
I love hearing root cause, just in time, TPS, Toyota, waste, valuing people, etc. as a proud Toyota employee
TMMK baby!
Toyota is always my go-to example of companies that understand logistics
Proud owner of a 91' Toyota MR2
@@kilowhiskey7973 ahh! Not too far away, I work at TMHNA
I've encountered many dumb-dumb self proclaimed "JIT/Toyota Production System/LEAN gurus" who take the philosophy as gospel, misapply it to the point where the company loses profits and LEAN becomes counterproductive...
Slap them
When things run to the ground those individuals always find a way to jump ship and move on to the next target
@@andrewdacosta3960 agreed. I've encountered these same idiots shitting all over a company, leaving and then getting recruited by the next victim
that was gospel where I worked...
This is the problem with a lot of paradigms you read out of a textbook.
Some dolt with their MBA will think that the pretty arrows going around in circles are a ritual for success.
As a 15 year professional helping companies implement the Toyota Production System, thank you for this video. It's very accurate and well stated.
I've seen Kanban implemented at a number of companies. It works. Shortages happen and supply chains collapse, but the philosophy is still good, because even with companies that carried excess inventory, these problems still exist.
So you are a source of TPS reports...
@@paul11273 riiiiiiiiiight
@@paul11273 and you used the wrong cover sheet Paul. Again.
Do you have a background in inventory management?
This is the best video that I have seen on this channel. Excellent, in depth, and understandable explanations. Thanks!
In the words of the Division trailer:
“System is built on a global supply chain, that gets things where there needed ‘just in time’....created a house of cards. Remove just one and everything falls apart”
Erm, I'm not sure how to break this to you but "The Division", right? It's just a computer game, it has nothing to do with real life.
Terry, ever heard the phrase art imitates life? You sound like a douche. LOL
@@terrydaktyllus1320 I know, but I meant to like reference how they talked about the supply chain in that game. I’m not referring to the actual pandemic in the division
Mainly it was the arctic freeze that happened in Texas for a week. It affected everything.
As demand increased for parts made in Japan and China too !
“Realizing what is truly excess.” There is great wisdom in these words.
Now I'm reminded of how absurd it often is that large companies get bailouts whilst smaller businesses are left by the wayside
Bailouts are technically illegal and nobody should be given a free ride!
The bailout money goes to share buybacks that reward company executives.
Cruise lines when taxes are due: 🇵🇦🇳🇴🇨🇱
Cruise lines when the US is giving out billions in bailouts: 🇺🇲🇺🇲🇺🇲
@@MisterEC1 Bailouts then are companies paying themselves more money? What the bloody hell happened to good old fashion capitalism where you lived or fell on your own success or failure?
@@kylehill3643 I'm no economist, but it seems like government is in bed with corporations and banks. The good Ole boys club? Freemasonry? Crony Capitalism?
Where I work we try to keep as much inventory as we can get away with. Spare parts for everything and spare parts for the spare parts, and as much consumables as we can fit in our storage, preferably all the time.
OK, I started watching this video thinking that I was going to blast it in the comments section because I thought it would over-simplify the problem. I was wrong. This was a well structured, thoroughly researched video concerning this very complex problem. Having worked in a manufacturing environment for 43 years, I compliment you on having hit every nail on the head...so to speak. I feared that the various implementations of "just-in-time" manufacturing that I had seen would fail eventually, that time came. I was lucky. I retired just a few years before it happened.
PEACE
PROSPERITY
BONANZA
ABUNDANCE
FREE THINKING
Same as me, I once worked in Japan and resigned before shit happened at my company. My old friend that worked together told me later that it was like hell at that time.
You think your retirement is safe and secure from a collapse of the current banking and stock market think again the time from 2021 to 2030 are going to be a reset of everyday life and “built back better” is what is to replace this current system. Which means loss of constitutional rights and no private property. Only essential businesses stay running and all oil industry goes away. Everything rationed for the population. Supermarkets won’t have enough to go around. The farms are already being destroyed in america
Not complex execute guilty politicians that orchestrated all lies imaginary new virus that is thousand year old flue affecting mostly retired seniors and terminally ill
Yes very true. They've been weakening the structures for a long time
Reminds me of that Tokyo Drift quote: "For want of a nail, the horseshoe was lost. For want of a horseshoe, the steed was lost. For want of a steed, the message was not delivered. For want of an undelivered message, the war was lost."
Goes back to the 13th century: en.m.wikipedia.org/wiki/For_Want_of_a_Nail
@@jasonnugent963 Who would have guessed that Tokyo Drift went that far back 😉
@@robfenwitch7403 Fast and the Furious 15: Medieval Time Warp
This is an old, old proverb, not a new quote from a screenplay. It's easy to find on Google, don't folks actually look up information anymore?
We have access to it, why not spend a few seconds and avoid putting out incorrect information? I'd rather be slower and more precise than quick but erroreous.
@@shawnwales696 nah, it's from the uncle in FnF TD
Basically, no one having stockpiles for critical materials extremely vulnerable to supply chain disruptions is the root cause
Efficient and streamlined / robust and resilient - pick one...
@@veduci22 balance the two, but yeah…
Yes, but artificial gov economic disruption is equally the problem here.
Well China controls, what, like, 90% the rare earth elements. So yeah. I knowJapan struck a huge cache several years ago. But getting them into usable form takes several years.
Yup. Just In Time logistics works great in a perfect world. Unfortunately the world isn’t perfect.
I cant believe you made a video on buisness and manufactering, that I actually found interesting and watched to the end. Good job man that's a sub from me.
When governments offer Keynesian bailouts to companies that operate on a "one bad quarter from bankruptcy" philosophy, it makes it impossible for a responsibly run company to be competitive. Bailouts are the cause of future bailouts.
You mean the American way?
Blasphemy!
Also happen with Humanitarian aid. If done carelessly, gave out food for everyone will resulted in close down of all restaurants, leave people with no jobs, because you can't compete with free stuffs. Further reduce abilities for self-substainting, when no one has a job they'll need to rely on foreign aid forever.
@@mukamuka0 Aid and NGO's are a front to keep countries poor forever.
Just delaying the inevitable
Sounds like the US needs to work on more domestic manufacturing instead of relying on imports, among improving other redundancies in our own domestic supply chain.
That would require the political morons running the US to actually do something resembling their job, instead of securing book deals to make them millions. Sadly, you won't see anything like this being fixed in our lifetime :(
No, not at all.
Wood is produced locally, costs a fortune now.
@@TheAmazingJimmy but what about everything else that isn't wood
@@TheAmazingJimmy Just came from Idaho. MOUNTAINS of logs just sitting there.
Something else is going on.
Yeah but whose gonna work in the factory? Most young Americans would rather play video games and chill.
"Plastic resin can handle supply chain disruption", depends on the type of disruption. As a seller of plastic pipe in North America we've faced shortages all year. So much that we were told back in April/May that our manufacturers would not be able to take any new orders until the end of December.
As for the flawed implementation of just in time inventory I've seen it first hand. One of our suppliers instituted it over 10 years ago when a new CEO cane in and it nearly ruined them. Impressive savings in the first few years made shareholders happy but delivery times for their products increased by 2x to 4x what they were historically. These products were critical components for water & sewer infrastructure and as the lead times got worse many customers went to competitors to solve the problem. Sales plummeted and they've spent the last decade fixing these problems and trying to restore their reputation.
Outside of the Toyota commercial, it's very clear explanation of what's going on and the cascading events. Many thanks.
"We will have to offer a smaller quantity of tapioca pearls in each drink." Oh god. We... we deserve this, don't we. :(
Certainly puts the worldwide building sand shortage in perspective! Won't somebody think of the tapioca? #FreeTapioca
Wtf is wrong with u people 🤣
@@michaelchildish Tapioca is pretty cheap here in the Philippines, but all our video cards are scalped straight from the distributor.
At least now u have no mean tweets
At least there are plenty of flys for the ointment.
Working for customer service for a retailer; I've learned that you can explain these current shortages to people and they seem to understand....until it happens to them. Once it's THEIR order that's delayed due to a shortage, it's all "I don't care about the shortages/stop making excuses, and get me my product NOW!"
I often don't even NEED a product that will be delayed. If dinner takes months to arrive you'll starve and won't need to eat when it arrives.
@@REALChannel99 It's mostly older folks where I'm from.
@@jamieandrei what parts are you waiting for? Aren’t most pc parts already standard.
@@jamieandrei You need a piece of sheet metal, some screws, metal shears and a drill. The only purpose of that HDD bay is to keep it from moving around/shaking due to the vibration. A strip of sheet metal bolted/screwed into any solid structure inside the case is more than sufficient. Total cost including tools will probably be cheaper and the work is done in maybe 10 - 15 minutes. Unless you're a millionaire it's probably worth the time. Doesn't match the color of the case? Sandpaper and paint have been invented.
WW2 American civilians detained by Japanese returned home confronted by a bunch of whining neighbors complaining of their RATIONS,yet didn’t want to hear how horrible it was for those who almost starved to death in the camps
Toyota saving up their chips reminds me of Ford getting a low-interest loan a year before the 2008 financial crisis. They had cash on hand, while all their competitors went bankrupt.
@Judith Chambers they took a handout from the government under the guise of making more green cars. They were bailed out just like every other automotive company, they were just scumbags and didn’t own their L. Matter of fact, none of those automakers didn’t take their L. The tax payers bailed them out and they said screw you and moved the majority of their production out of the US.
#JESUS FIRSTt Jesus Is Love And The Way And Truth And Life And The Only Way To Be Saved Through The Creator Of All Things To Jesus Be The Glory
Thank you this was very helpful and informative 👍👍
God damn that was a better explanation of fragility of supply chains than I could ever give to my friends who aren’t engineers.
One guy tried blaming milk companies for farmers having to dump milk and I had to literally take him step by step in how milk is made and that it’s an extremely perishable product that is constantly being made regardless of if the manufacturer is ready or not.
How milk is made... a long exercise in microbiology? 🤔
@@jjbarajas5341 well I mean how milk is processed after the cow part
Sooooo....... are you going to explain to him how babies are made?
@@yohoyoho13 well considering he has 2 demon children, I’m gonna skip that part.
This comment is utterly milkable.😂🤣
Back in the late 90's there was this push for something called "In Time Delivery", everything from paper to bolts would be 'ordered and delivered' just as the supply at the factory was running low. That and the push to 'globalize' well, everything, set us up for massive shortages if something went south. Sadly, we're not likely to learn from this.
Not getting everything we want isn’t a problem it’s just that we got to used to first world luxuries
You just summed up about 2 semesters worth of intro BBA courses that I took in undergrad in ‘98 which explains this entire situation. It was the new revolutionary “Just In Time” inventory method. Taught with abandon as a way to significantly reduce overhead costs to increase profitability.
@@murryjm The company that I worked for in the 90's was a mid-sized global container/packaging manufacturer. Between that JIT policy and the pending ISO2000 stuff they were pushing for it got so our product lines would operate with a few days margin. That is, raw materials arrived, often the day or even night before the production was slated. Rolls of paper and bins of polymer came off the trucks and went straight to the printing or plastics departments for prepping, while those departs output would be sent straight to the tubers or extruders departments, which fed directly into sorting and packaging. From there they went to the loading docks, often right onto waiting trucks or containers. We 'might' have as much as a weeks supply of most materials stored up, but just as often as not, it was a few days. There were always hiccups. A broken machine, or a delayed shipment of raw material could cause delays all the way down the line. The floor managers were constantly juggling orders to keep the numbers up. At the end of the day, I could say that we still had several warehouses loaded with stuff. Raw materials, stuff waiting to be processed further, stuff half processed, stuff finished but customers had put holds on shipping. Often we'd have dozens of loaded trailers parked for weeks. Winter weather caused it's issues, so did bottle necks in shipping. The company had a sizable truck fleet. Trucks taking paper bags, plastic bags, boxes, corrugated, etc., would ship mostly to the east coast from Iowa, while raw material(mostly paper) shipped to us from the west coast. Waste product, mostly two ton bales of scrap paper, etc, got packed into shipping containers to be sent to china or east Asia. With these huge delays at the two ports we have out east for container ships, I suspect that this Just In Time method has f'd up a lot more then what we're seeing openly.
Oh, and that push to send as much production overseas as they have. I've said in other video stream commentary that when people say "Buy American" they fail to fully understand that very little is 100% made in the U.S.A. They need 'stuff and things' made overseas, as ingredients; as components; as packaging; as machines used to make them, etc. Lets look at something that should truly be American Made. American flags. Most are made overseas, and I think there's one American company that produces them, but I'd bet a weeks salary that if we were to look into their inventory and manufacturing invoices we'd find that needles, thread, even cloth, come from 'not American' sources, as do the parts to keep their machines running.
@@yourseatatthetable very sad
As a factory worker, I knew that "just in time" was going to be a factor in this avalanche of problems.
When just in time was rolled out at GM I look at them and asked...are you fucking nuts.?....never got asked to set in any other meetings.
Ya same here as an autoworker. It's been in the back of my head the first time I heard it too. Think about the fast food industry. Fast food isn't as fast as it used to be. Why ? Because big franchises don't like throwing food away & honestly I don't blame them for it. But it has a consequence, you piss the customer off when you make them wait longer & then the next time they want something to eat, that same customer will go elsewhere.
@@BA-pg4od Yup that too. :(
Just in time needs to go back where it came from ---HELL !
Like the companies that used flawed meaning of Just-In-Time, you too my friend are blaming JIT instead of short sightedness and profit hungry philosophy of many companies. Like he said there's a difference between eliminating excess inventory and eliminating inventory all together
I would disagree with the statement “all over the world there is a proliferation of scarcity- “
I would say there is a proliferation of over consumption .
"Take the rope to the tree and lead the way with your last gasp".
A 4 x 8 sheet of OSB plywood was $7.50 in November 2019. Today it is $45.00.
*Somebody* is pocketing a lot of money.
I’ll be honest with you Ray, it is not me.
It is crazy though how people are still building houses and remodeling.
It isnt a shortage of lumber. Its lumber companies purposefully stockpiling and not actually selling
don't buy it
Forget that. A 4x8 sheet of 3/4" plywood is $99.99! Used to be $30.
Thank you, Dear Leader Biden.
Some guys research claims all the lumber prices going up is due to sawmills. There is a video on here somewhere.
Who didn’t see that complete dependence on a fragile supply chain would cause issues. We’ve been standing on a house of cards for decades. Now, let’s talk about our utter dependence on an aging energy grid....
An aging entire infrastructure. The energy grid, the bridges, water lines, oil pipelines...everything is breaking down faster than it can be patched up because of decades of taking public funds away from infrastructure and spending them on special pet projects.
@@shaynecarter-murray3127 That's putting it nicely. What really happened was: THEFT. Outright theft, by crooked politicians, and people who are in positions of power to pull it off.
Get ready. That's on the line of things to get hacked
... you clearly think engineers are not working at all. they just get their degrees and pick boogers.
Energy, food, water all in jeopardy.
Polymatter: Makes a video about the shortage of semi conductors
Sam: *Hold my stock footage*
Dude who are you and how do you have the discipline to aggregate and then clearly present so much knowledge? I love your videos and have learned so much. Your topics are always on point. Thank you.
When I played Factorio, my production lines had buffer supplies in them, so that if for some unforeseen reason my production line shut down, the downstream factories would have a buffer of supplies that would last until I could get the production line up and running again. Production lines were always higher ramped than necessary to provide for the factory, so the buffer would fill until it was full, and the buffer size was set so that it was excess, but not a terribly large amount. Just enough to get by on during an emergency.
It's sad when video game players are more familiar with proper supply chain logistics than the so called experts who do it for money. Hell we do this shit just for fun.
Covid was the trigger not the reason for the shortage. Can’t tell if you’re being sarcastic or just plain stupid Smith.
Well, factorio did not have office politics in it~ But I get your point, and would like to add another : executives should try playing simulation games to try new ideas.
@@bmanpura But that would require them to use of their time and time is money. And it would actually require them to learn and do their job properly to provide backups and engineering redundancy into their systems, which will take out of their precious profits. But hey, it is not like strategy sims teaches you about redundancy or anything
@@jack6723 Haha! That's a good point.
I hope they love their job and their customer more than they say they are.
@FPK spot on! So many companies incorrectly predicted that the covid impact would be much worse than it actually was. As such they sold a lot of their safety stock for cash to keep the company alive and kicking for the long haul. That's where the safety stock went.
Our "just in time" inventory management in the age of global pandemics has now been proven to be our Achilles' heel.
We need an automatic item sorter
@@sachiconza9406 We need a global, AI-driven resource-based economy. I for one welcome our AI overlords. :-)
No, they didn't implement the system at all, they just got rid of all stock and called it "just in time" to please short-term stock owners.
@@catalindeluxus8545 got it in one. They just pushed the costs of inventory storage to their suppliers.
It was never "just in time" when a company is shipping goods from China to North America. That's a complete bastardization of the Toyota concept, as this video states so clearly.
As someone who worked for a Cruise company for the first (and last) time in Alaska during 2019, let me say I'm glad they're doing poorly. They treated both we employees and customers like trash, put both groups at risk during an epic wildfire season and pollute that beautiful State EVERY time they pull into port. While I understand Alaska needs tourism, there has to be a better way than Cruise lines who ruin everything they touch.
Big corporations in general ruin everything they touch.
Make short term profit please the shareholders bail out when it goes to shit repeat
Ns in bail outs?
I agree with you but didn't the cruise industry get bill
I work in one of those cruise towns and, while it really sucks for the town's economy, those ships try to squeeze as much as they can out of everyone. It's such a small area to accommodate over 10,000 people and they keep trying to figure out how to fit more.
A friend of mine was on a cruise (the Caribbean, not Alaska) and couldn't sleep. He went up on deck at 3 AM and witnessed workers tossing bags of garbage off the back of the ship. I wouldn't doubt that is standard procedure for most cruise lines.
I used to work at a Toyota supplier (not Toyota but a manufacturer who used their methods) in the US and they determined they would never be fully automated because the cost of machine maintenance would be higher than just paying people. They had people pushing the factory buttons, checking for defects, and doing rework, but they had machines doing the assembly.
Back when JIT manufacturing was becoming a "thing" I took a class in Japanese Management Techniques. At that time the basics of JIT were attributed to WWII. Japan's supply chains were severely disrupted by period air raids on factories. This made a classical production line techniques impractical i.e. it was strategically problematic to store large amounts of inventory on site. So production of parts was moved offsite, inventory was kept to a minimum and only what was needed was stored on site at the factory. This later became the basis of JIT supply chains.
JIT supply chain techniques were created by US WWII supply engineers who were snubbed by American auto manufacturers.
Necessity is the mother of invention
@John Smith perhaps both developed it independently
JIT manufacturing had nothing do with air raids. It was first applied at Toyota in the 30s, before any air raids on Japan took place.
@@RaitoYagami88 incorrect. Toyota credits Henry Ford but Ernest Kanzler who used JIT during the war effort. WWII was won by supply and logistics.and Japan was no where near the US in logistics. The only only reason the US did not fully adopt JIT and Kaizen techniques after the war was because the US was the major manufacturing player standing.
The logistics channel is here to tell me about logistics problems. Perfection on a Tuesday
Logistically logically liking LOL
@@cosmicHalArizona b
PEACE
BONANZA
ABUNDANCE
FREE THINKING
Fallout currency: Bottle Caps
Current society currency : Heinz ketchup packets
How many toilet paper rolls for one ketchup packet?
Haha...I can't believe people can't just do without ketchup..what a joke
@@nexusSix_237 That went completely over my German head. What's up in the US again?
I'm still banking on bottlecaps. Hopefully they will have some value in the apocalypse
@@brokkrep I think it has something to do with panic buying. It appears Americans need to have ketchup with everything and is equal in value to toilet paper
Stunned at the quality of your video essay! Great job!
The psychological concepts this video brings up are fascinating. Basically, we’re seeing the effect of a lack of delayed gratification, just in a much larger scale than the personal one we are used to. Humans are hard-wired to be bad at long-term planning/thinking
It's interesting to me. We as average people are addicted to short-term instant gratification. Twitter, Instagram, Tinder, fast food restaurants, etc. It's funny to me that this phenomenon in our personal lives, where we pursue the thing of the quickest possible gratification, is exactly what almost every major industry surrounding semi-conductors is doing. Short term efficiency to impress short term shareholders at the cost of sustainability.
@@Malohdek Exactly! And the weirder part is that we also tend to acknowledge this flaw! You won't meet a single human being that would disagree with the statement "prepare for the long-term," but we do it so rarely. I'd like to think that, were I a major shareholder of a company, I would be far more impressed with a long-term plan than one that just throws money into the coffers in the short-term.
@@andrewgochenaur5647 Amazon is the perfect example of how a shareholder playing the long game can pay off. For roughly a decade the company wasn't making any real profit, and now they are one of the most profitable companies on the face of the earth!
I’d love a good UA-cam video or channel recommendation on this - a truely interesting topic
While the concept seems sound, I don't think all the world economists and corporation logistics departments failed to notice it. The fact is the supply web is just too complex to predict.
Take the video's own example, the boba tea. There was no way anyone could predict the shortage of it. Like the video said, production of it in China was never disrupted, delivery was never disrupted. Basically, it is to the tea shops as plastic resin to the car industry. It wasn't essential to build excess. But supply chains are all connected, and disruption due to excessive port demand and global container shortage caused by other supply chains that were completely unrelated to boba tea led to its unpredictable disruption.
As always said, hindsight is 20/20.
So a structure without reserves cannot survive a major disruption?
Color me surprised.
@Not Mymain Eh, we can work with people who want to be our friends.
But it has to be mutual.
@Not Mymain
Not exactly, also there is manufacturing in this country just not as prevalent as people would like.
@Not Mymain Yes do that, and then you will be bitching about why a new iPhone suddenly costs twice the price, or why a new pair of Nike shoes now cost triple.
Minimum wage in the US ranges from $8-$15/hour. While wages in China and developing countries can go as as low as 50 cents - $1 or $2 and hour.
People who keep yelling “Bring jobs back to America” are going to be the first to bitch when they have to pay extra for electronics and household items.
@@Aliens1337 That doesn't have to happen, continue the minimum wage at 8 to 15, it's a fair number. But multi-million dollar CEOs are not. Cut their wages and everything can be manufactured here and still be affordable. Tah-Dah!
@@Serenadesong Yes but Medusa won't cut her hair.
Toyota: Balancing "Just in time manufacturing" with "just in case manufacturing" - brilliant!
“Just in case” sounds less calculated than what Toyota does for risk management. It doesn’t violate the pillars of TPS to have inventory as long as it’s calculated and necessary (for the production process or risk mitigation or to level-load shipments/production), for example.
Toyota makes cars with GM and Nissan with Ford so what's do you know
@@samuelgonzalez1891 Toyota doesn’t make cars with GM. They did as a way to enter into manufacturing in the US but that dissolved years ago.
@@Bobbyjfornuthin I did radiators for 20 years and different car companies had there part in other cars
@@samuelgonzalez1891 and I’ve worked in Manufacturing and Engineering for Toyota for the past 20+ years. We don’t make cars with GM. No one said component parts aren’t made for various OEMs by Tier 2 suppliers, but that’s not what you said.
6:01 Was not expecting to see my hometown in this video. I'm so glad we've all cleaned up so much debris in the past year, it almost looks halfway normal now.