Art Koch’s Profit Chain®

August 20, 2020

Meet America’s New Homecoming Queen; Manufacturing

Art Koch’s Profit Chain® Series
Volume 3 | Number 8 | August 2020

Before the pandemic, in 2017-2018, we had witnessed the peak of globalization. Results of several recent polls taken of industrial leaders indicate that between 65% to 85% plan to re-shore, nearshore, or insource products manufactured in remote parts of the world to reduce their supply chain risk.

When I first started to write about this topic, I received mixed reviews. Not everyone believes that extended supply chains negatively impact Total Cost of Ownership to the extent of my views. Regardless of whether or not you agreed with me back then, there is no denying that we are now in the midst of a seismic global manufacturing shift. Are you ready for the change?

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March 18, 2020

The Call of a Generation – Navigating the Covid-19 Crisis

Art Koch’s Profit Chain® Series
Volume 3 | Number 3 | March 2020

The Call of a Generation – Navigating the Covid-19 Crisis

As our parents, grandparents, and great-grandparents before us, each generation was called on to make sacrifices for their country: whether it was during World Wars, The Great Depression, or similar pandemics such as the Spanish Flu. Today, WE are the generation who must make the sacrifices. We will get through this as stronger people, stronger nations and partnerships. Please remember, as bad as this feels, no one is dropping bombs on us or shooting at us!

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February 23, 2020

How is that Plan “B” for China?

Entropy Busters® Series
Volume 3 | Number 2 | February 2020

I started with, “Let’s start with the realization that plan “A” to relocate operations to China had a major flaw. If you moved manufacturing to China, India or any other low-cost producing country with the intention of importing goods back to North America or Europe (half a world away), then your plan was unsound!” The primary focus was on inventory velocity, total cost of ownership and the ethics of investing. Now we are in the middle of a S^&% storm of COVID-19 with world-wide impact to supply chains and the global economy.

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February 16, 2020

Teams and Conflict

How are your teams at? Forming Norming Storming Performing How well your teams move through these steps will determine their impact, performance and conflict levels. https://youtu.be/XAQC_Am5ywU

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February 3, 2020

E-Mail Is A Decoupled Process

If you’re like me, you likely rely on e-mail for many for functions.

Many times we take to path of least resistance. When you’re a Supply Chain or Operations team member with a heavy work load trying to get the daily task completed, it’s common for short cuts to be taken; hence the path of least resistance. These work-arounds become tribal knowledge and halt proper change management.

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January 12, 2020

When Ludicrous becomes Scandalous

When Ludicrous becomes Scandalous.

I like to have fun with the words ludicrous and scandalous. By personal definitions are as follows:

Ludicrous; We’ve all been there… Billy always has the crazy ideas. Often, they’re actually worth looking into and determining if they have any substance. However, with any good brainstorming there are the occasional ludicrous ideas. There is absolutely nothing wrong with the occasional ludicrous idea, just don’t spend resources on it.

Scandalous; Is spending time and money on that ludicrous idea…!

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December 7, 2019

Inventory Is NOT a Security Blanket!

Why do we care about inventory?

  • It costs money
  • It uses needed capacity
  • It negatively affect service
  • It hides problems therefore… It delays fixing problems!!!
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November 11, 2019

Enterprise vs Cost Center Thinking

Don’t fool yourself by only considering incremental cost.

World class organizations think enterprise wide when completing cost analysis.

Don’t get trapped into trying to optimize,

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October 24, 2019

Leadership starts with Change… And Change starts with Leadership…

A colleague recently asked what I use to train Change Management.

Leadership starts with Change… And Change starts with Leadership…

Helps to set the tone of importance and the dependence of both.

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October 17, 2019

Plan “B” for China

Let’s start with the realization that plan “A” to relocate operations to China had a major flaw. If you moved manufacturing to China, India or any other low- cost producing country with the intention of importing goods back to North America or Europe (half a world away), then your plan was unsound!

I was taught to do everything possible to reduce lead-times and increase inventory velocity! Why is this important? Longer lead-times increase inventory. More inventory equates to less profits. Why? Because inventory delays fixing problems. When I see corporations chasing the labor “ghost”, I cringe! Labor typically accounts for 8-12% of the total cost of ownership. But too many leaders only have one play in their play book: to reduce labor costs by moving head count to low cost countries! They are missing 90% of the total cost of ownership!

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