OT, then Plant Shutdowns = Waste

Chrysler Extending Plant Closures Over Christmas in Bid to Shrink Inventory: Financial News – Yahoo! Finance

We read this morning in the WSJ about how Chrysler had the largest per-vehicle incentives ($4000) in the industry. It really seems like the inventory problem was terribly out of control, their overproduction, as I blogged about before. They were running OT (while inventory piled up), now they’re doing extra shutdowns (as referenced in the article linked to above and here). That just adds cost, cost, and more cost. Such waste.

Here’s another take from the Truth About Cars blog, getting more into the “sales bank” and other questionable practices.

Please check out my main blog page at www.leanblog.org

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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 book 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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