Gemba Pantarei Doesn’t Like GM’s "Red Tags"


Kaizen and Lean Manufacturing thoughts | Gemba Panta Rei

Jon Miller makes a clever point about the double meaning, to lean people, of “Red Tags”. He says the dealers are getting rid of un-needed vehicle inventory…. just as we might clear out the shopfloor in a 5S event.

It's sad though, jokes aside, that the auto industry “pays people incentives to take cares that aren't exactly what they want.” I think it was Jim Womack who said that a few years ago. The dealers are so addicted to bragging about how much inventory they have on hand. Plus the dealers love advertising discounts, even for luxury cars (look how cheap you can get this Jaguar!).

What a fundamentally broken industry the auto industry is. And I say that being around health care now!

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Mark Graban is an internationally-recognized consultant, author, and professional speaker who has worked in healthcare, manufacturing, and startups. His latest book is Measures of Success: React Less, Lead Better, Improve More. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. He also published the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also a Senior Advisor to the technology company KaiNexus.

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