Real World Event Discussions

Flawed Six Sigma Policy Bites the World in the Ass...

POSTED BY: 6IXSTRINGJACK
UPDATED: Monday, December 20, 2021 21:45
VIEWED: 777
PAGE 1 of 1

Monday, December 20, 2021 9:07 PM

This article, while all about Six Sigma causing the supply chain crisis after crazy people in charge locked down the world for a year, doesn't even mention Six Sigma once by name.

They should have.

https://www.ft.com/content/8a7cdc0d-99aa-4ef6-ba9a-fd1a1180dc82?segmen
tId=b385c2ad-87ed-d8ff-aaec-0f8435cd42d9

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Monday, December 20, 2021 9:12 PM

Alas, behind a paywall.

-----------
Pity would be no more,
If we did not MAKE men poor - William Blake

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Monday, December 20, 2021 9:14 PM

Really???

It wasn't for me... Hang on a second and I'll archive it.

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Monday, December 20, 2021 9:17 PM

Yay! Archive.today is working again. I was worried about them since I haven't been able to archive any stories to avoid paywalls through them for at least a week.

Here it is.

https://archive.ph/cQThD

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Vaccinated People: "You need to get muh vaccination shots that don't work because I got muh vaccination shots that don't work and I'm afraid of people that didn't get muh vaccination shots that don't work because muh vaccination shots that don't work don't work."

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Monday, December 20, 2021 9:18 PM

But I did see something similar, I think, posted in ZH (originally posted elsewhere)

Quote:

Rickards: The Great Supply Chain Collapse

Sunday, Dec 19, 2021 - 03:05 PM

Authored by James Rickards via DailyReckoning.com,

What’s at the root of the supply chain breakdown? That’s a critical question but the answer is almost irrelevant. The supply chain is a complex dynamic system of immense scale. It is of a complexity comparable to the climate as a system.

This means that exact cause and effect cannot be computed because the processing power needed exceeds the combined processing power of every computer in the world.

Most people have some notion of how supply chains work, but few understand how extensive, complex and vulnerable they are. If you go to the store to buy a loaf of bread, you know that the bread did not mystically appear on the shelf.

It was delivered by a local bakery, put on the shelf by a clerk, you carried it home and served it with dinner. That’s a succinct description of a supply chain – from baker to store to home.

Yet that description barely scratches the surface. What about the truck driver who delivered the bread from the bakery to the store? Where did the bakery get the flour, yeast and water needed to make the bread? What about the ovens used to bake the bread? When the bread was baked, it was put in clear or paper wrappers of some sort. Where did those come from?

Even that expanded description of a supply chain is just getting started in terms of a complete chain. The flour used for baking came from wheat. That wheat was grown on a farm and harvested with heavy equipment. The farmer hires labor, uses water and fertilizer and sends his wheat out for processing and packaging before it gets to the bakery.

The manufacturer who built the oven has his own supply chain of steel, tempered glass, semiconductors, electrical circuits and other inputs needed to build the ovens. The ovens are either hand crafted (engineered-to-order) or mass produced (made-to-stock) in a factory that may use either assembly lines or manufacturing cells to get the job done.

The factory requires inputs of electricity, natural gas, heating and ventilation systems, and skilled labor to turn out the ovens.

The store that sells the bread is on the receiving end of numerous supply chains. It also requires electricity, natural gas, heating and ventilation systems and skilled labor to keep the doors open and keep merchandise in stock. The store has loading docks, back rooms for inventory, forklifts and conveyor belts to move its merchandise from truck to shelf.

Every link in these supply chains requires transportation. The farmer relies on trucks or rail for deliveries of seeds, fertilizers, equipment and other inputs. The oven manufacturer also relies on trucks or rail for deliveries of its inputs, including oven components. The bakery and the store rely mainly on trucks for deliveries of their inputs and the finished loaves of bread. The consumer relies on her automobile to get to the store and return home.

These transportation modes have their own supply chains involving truck drivers, train engineers, good roads, good railroads, rail spurs and energy supplies to keep moving and keep deliveries on time.

This entire network (farms, factories, bakeries, stores, trucks, railroads and consumers) relies on energy supplies to keep working. The energy can come from nuclear reactors, coal-fired or natural gas-fired power plants or renewable sources fed to a grid of high-tension wires, substations, transformers and local connections to reach the individual user.

Everything described above sits somewhere in a complex supply chain needed to produce one loaf of bread. Now take everything else in the grocery store (fruits, vegetables, meat, poultry, fish, canned goods, coffee, condiments and so on) and imagine the supply chains needed for each one of those products.

Then take all the other stores in the shopping center (home goods, clothing, pharmacy, hardware, restaurants, sporting goods) and imagi

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Monday, December 20, 2021 9:21 PM

Quote:

Originally posted by 6IXSTRINGJACK:
Yay! Archive.today is working again. I was worried about them since I haven't been able to archive any stories to avoid paywalls through them for at least a week.

Here it is.

https://archive.ph/cQThD



Ah, thank you.

What I gather is that companies so far are attempting several things to untangle the supply chains:

increasing inventory
longer contracts with suppliers
regionalizing production
"nearshoring" production

but accordding to the chart, if I'm reading it correctly, the only part they're having success with is increasing inventory (and that may be just an affect of having idled production bc of lack of one critical part, allowing a buildup of other parts)..

Yanno, I've been banging on this for YEARS... how JIT and long supply chains may be cost-efficient but not ROBUST.

Everynody yawned and thought I was banging on about some distant theoretical problem that could be safely ignored.

Well now I get to say

I TOLD YOU SO





-----------
Pity would be no more,
If we did not MAKE men poor - William Blake

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Monday, December 20, 2021 9:36 PM

Yeah. Thanks for posting the other article. It is about the same topic, but told in a very different way.

I disagree with anybody that these systems were made to reduce costs to the consumer. These policies and practices were decades in the making to reduce the bottom line for companies and make the stock more appealing to investors.

This is why I've always argued that anybody with a 401k plan (or straight investing in the stock market) is making money off the backs of the people who actually work for a living.



Six Sigma has a LOT of flaws. The most egregious being that they don't consider human labor as human beings. They are simply numbers to be counted and analyzed. Small pieces of a greater whole. There is a very COLD and robotic feeling that sweeps through any corporation that is being restructured via Sig Sigma.

But it seems that its most fatal flaw is that it didn't ever take into account an unnatural disaster like politicians worldwide shutting nearly everything down at the same time for an entire year and how on earth they could just get right back on the rails when things opened back up.



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Monday, December 20, 2021 9:45 PM

You added this while I was posting my reply after your article...

Quote:

Originally posted by SIGNYM:
What I gather is that companies so far are attempting several things to untangle the supply chains:

increasing inventory
longer contracts with suppliers
regionalizing production
"nearshoring" production

but accordding to the chart, if I'm reading it correctly, the only part they're having success with is increasing inventory (and that may be just an affect of having idled production bc of lack of one critical part, allowing a buildup of other parts)..



And increasing inventory is going to drive up prices. As per Six Sigma, these warehouses were packed as efficiently as possible already. (And if you've ever worked in a warehouse before you know that means there was already too much stuff and it was on you to find new and inventive ways to temporarily store things that wouldn't require double and triple work moving them around later).

If you're going to hold on to more inventory, you need more space. That means buying or leasing new land. Paying more property taxes. Building new buildings. Buying more machinery. Maintaining more buildings and machinery. Heating and lighting more buildings. Trying to hire more staff when there's already a long overdue labor shortage that is being exacerbated by unconstitutional vaccine mandates.

Quote:

Yanno, I've been banging on this for YEARS... how JIT and long supply chains may be cost-efficient but not ROBUST.

Everynody yawned and thought I was banging on about some distant theoretical problem that could be safely ignored.



That's OUR fatal flaw as a species. On an individual level, I think we're pretty great. Put us into any sort of groups though, and heard mentality kicks in. Echo chambers are a recent addition to the vernacular, but I'm willing to bet that we've been living inside of them to our own detriment ever since cave men first figured out how to communicate through cave paintings and varying their grunts while learning how to pick up on non-verbal cues.

Quote:

Well now I get to say

I TOLD YOU SO




I'm always for a little bit of schadenfreude.



--------------------------------------------------

Vaccinated People: "You need to get muh vaccination shots that don't work because I got muh vaccination shots that don't work and I'm afraid of people that didn't get muh vaccination shots that don't work because muh vaccination shots that don't work don't work."

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