Sunday, March 29, 2015

Focus and Leverage Part 411

Bruce Nelson sent me an article that both he and I find humorous.  It's humorous because we have written frequently about part's stock-outs and how to use the Theory of Constraints (TOC) replenishment model to overcome a shortage of parts while reducing the inventory by 40-50%.  I guess I expected more from Boeing as parts of this company have been using TOC for years. 
Part's shortages many times come from the classic Min/Max replenishment system, so I suspect this is potentially the cause of Boeing's seat shortages on it's Dreamliner aircraft which has been plagued by problems throughout its short history.  Any way, here is a link to this article.

http://www.msn.com/en-us/money/companies/dreamliner-seat-shortage-prompts-boeing-to-park-jets-in-desert/ar-AAa6wda?ocid=HPCDHP

Bob Sproull

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