By October 10, 2005 1 Comments Read More →

Delphi files for bankruptcy

Detroit Free Press

I doubt Delphi is the “most lean” company around, but they have made significant progress and have won multiple Shingo Prize awards for lean excellence. That said, I guess this proves, unfortunately, that “doing lean” in and of itself is not a substitute for a more complete and effective business strategy.

Even if Delphi were doing everything right today, they were really hampered by contracts and decisions from the past.

“Delphi pays its U.S. hourly workers wages and benefits that an average of $65 an hour, compared with an average of $24 to $25 at its competitors. Under part of the union contract commonly called the Jobs Bank, Delphi expected to spend $400 million on wages and benefits for 4,000 employees who get paid even when there is no work for them.

Sitting at home, getting paid, while waiting for work, would certainly qualify as one of the eight forms of waste? Waiting for work, waiting for bankruptcy, waiting for the dissolution of the pension plan?

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an eBook titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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1 Comment on "Delphi files for bankruptcy"

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  1. JB says:

    And people wonder why union shops are closing all over the country.

    It seems every union has been handed a terminal diagnosis, but denial is more than just a river in Egypt!

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