http://forums.industryweek.com Talk about the issues raised in a recent IW article, column or news item. en Sat, 10 May 2008 22:15:56 GMT vBulletin 60 http://forums.industryweek.com/IWImages/misc/rss.jpg http://forums.industryweek.com http://feeds.penton.com/~r/IWTalkBackForum/~3/287128767/showthread.php Fri, 09 May 2008 21:44:21 GMT While doing a search on the IndustryWeek Web site about another topic altogether, I ran across this article: Bush -- The Jack Welch of Washington? (http://www.industryweek.com/ReadArticle.aspx?ArticleID=811) This article ran in 2001, less than a month into the George W. Bush Administration. The... While doing a search on the IndustryWeek Web site about another topic altogether, I ran across this article: Bush -- The Jack Welch of Washington? This article ran in 2001, less than a month into the George W. Bush Administration. The deck of the article reads: George W. Bush, America's new CEO, wants the U.S. government operating 'more like a business.'

How well does that story hold up 8 years later? Here are a few outtakes:

With Bush there's an assured command right from the top that's remindful of the determined leadership style of John F. (Jack) Welch Jr., General Electric Co.'s chairman and CEO -- although Bush so far appears kinder and gentler.

"If these guys really want to operate like a business, when they go to Congress to justify their appropriations, they will tie them to outcomes -- and they will explain . . . how they're going to measure those outcomes and report back progress against them."

Among best-managed manufacturers, clear agendas precede outcomes and performance metrics. Like the best-intentioned private-sector executive, Bush has his own clear plan. He, for example, submitted education-reform legislation on his fourth day in office, and last week announced and sent to Capitol Hill a $1.6 trillion tax-cut proposal.

And finally...

What's more, "those who advocate [running the government like a business] really mean running the government like a well-run business," reminds Rice's Whitaker. "And, as you know, not all businesses are necessarily well run."

These snippets are just that, small bites of a longer article. Go ahead and read it and tell me what you think: Does the U.S. government now run more like a business? ]]> Reader Talk-Back Jill Jusko http://forums.industryweek.com/showthread.php?t=1646 http://forums.industryweek.com/showthread.php?t=1646 http://feeds.penton.com/~r/IWTalkBackForum/~3/287060222/showthread.php Fri, 09 May 2008 19:12:06 GMT A Reader Comments: Re:How to Get the Most from an Unbalanced Production Line (http://www.industryweek.com/ReadArticle.aspx?ArticleID=16257) This is a very irresponsible post/article on your website. I routinely value your information, however, upon reviewing this article multiple times, it... A Reader Comments:

Re:How to Get the Most from an Unbalanced Production Line


This is a very irresponsible post/article on your website.

I routinely value your information, however, upon reviewing this article multiple times, it appears that the writers only wanted their names "in the press" and cannot offer any solid decisions to assist manufactures.

The "simulation theory" is valid, however, it is just that -- theory.

People in the real world need conclusions to help them guide improvements and not a set of "it depends" statements.

M. Scheiman
Independence, OH ]]> Reader Talk-Back Adrienne Selko http://forums.industryweek.com/showthread.php?t=1644 http://forums.industryweek.com/showthread.php?t=1644 http://feeds.penton.com/~r/IWTalkBackForum/~3/282253744/showthread.php Fri, 02 May 2008 17:00:52 GMT Re: Canon to Build New Factory in U.S., Create 1,000 Jobs

Sounds like good news to me. Glad to see a new plant opening in the U.S., although I'd love to see it in the Midwest.

Now I'll sit back and wait for all the naysayers to jump in and say that this isn't good news for the U.S. because Canon isn't a U.S.-based firm and they'll just take their money back to Japan. ]]> Reader Talk-Back industrialuser http://forums.industryweek.com/showthread.php?t=1626 http://forums.industryweek.com/showthread.php?t=1626 http://feeds.penton.com/~r/IWTalkBackForum/~3/281626666/showthread.php Thu, 01 May 2008 15:35:13 GMT John,

You now know what to do. Under no circumstances are you to check your bags at any airport with any airline, unless you have items that you potentially do not need for several days or maybe even never...

I haven't checked a bag in years. I stay happier that way. The airlines have turned into arrogant unfeeling bungholes. I don't care who it is! Even SW, my carrier of choice can be bozos when they want to be...

I tend to think of the lousy service, the cramped flights, the unavailability of flights, etc. as the reason why I usually get in my cramped window seat, pull out my head cushion, and close my eyes to the masking sounds of my iPod or sometimes bury myself in a good read, then fall asleep. Who wants to stay awake for a mouthful of peanuts or some other cheap snack? The golden age of air travel has been over for years. I have adjusted to the discomfort and sheer cattle car mentality. ]]> Reader Talk-Back mikestempo http://forums.industryweek.com/showthread.php?t=1624 http://forums.industryweek.com/showthread.php?t=1624 http://feeds.penton.com/~r/IWTalkBackForum/~3/280895586/showthread.php Wed, 30 Apr 2008 16:21:36 GMT Re: Lincoln Electric Supporting Effort to Relieve Welder Shortage


Isn't this a self inflicted wound? In the past, in shipbuilding, the car industry and heavy industry there were a multitude of welders. However as robotics have taken over, so the role of the human welder has deteriorated to a point at which they have become a specialist.

This is not surprising, and is a consequence of the natural trend towards short term strategy.

Welders have become specialists, and it is reasonable to expect them to be paid as such. Even with this injection of cash, what incentive is there for youngsters to join this trade?

I would venture a guess and say none whatsoever, because the future of this trade continues to be uncertain

R. Wendes

***************************************

Your Guys have to work with the industries, for example my safety director he doesn't know nothing about welding so we want to eliminate our welding shop do to a fire safety concern, people like that create a problems to the future welder.

D. Arroyo
Ft. Lauderdale, Fla. ]]> Reader Talk-Back Adrienne Selko http://forums.industryweek.com/showthread.php?t=1620 http://forums.industryweek.com/showthread.php?t=1620 http://feeds.penton.com/~r/IWTalkBackForum/~3/280128953/showthread.php Tue, 29 Apr 2008 14:31:10 GMT A reader comments: Re: Innovation is No Longer a Choice -- It is about Death or Glory (http://www.industryweek.com/ReadArticle.aspx?ArticleID=16211) Innovation is clearly very important when it comes to positioning your organisation so that it survives the future. Two points come out of... A reader comments:

Re: Innovation is No Longer a Choice -- It is about Death or Glory

Innovation is clearly very important when it comes to positioning your organisation so that it survives the future.

Two points come out of this:-

Innovation has to be cost effective. It's no good putting millions into a product that has no hope of realising its potential. The market may be too small and challenged.

The solution you choose needs to be efficiently executed. Prevarication will just lead to a massive case of self-indulgence which leads nowhere. Innovation still needs to be focussed and expertly executed.

R. Wendes
Tactips ]]> Reader Talk-Back Adrienne Selko http://forums.industryweek.com/showthread.php?t=1618 http://forums.industryweek.com/showthread.php?t=1618 http://feeds.penton.com/~r/IWTalkBackForum/~3/273018864/showthread.php Fri, 18 Apr 2008 16:55:43 GMT When I saw this line in the daily newsletter I wondered if the "Industry Leading Speakers" are going to discuss the terms of borrowing money from Tony Soprano. ]]> Reader Talk-Back rbrooku http://forums.industryweek.com/showthread.php?t=1611 http://forums.industryweek.com/showthread.php?t=1611 http://feeds.penton.com/~r/IWTalkBackForum/~3/271496437/showthread.php Wed, 16 Apr 2008 14:59:28 GMT A Reader Comments:

Re: The Future of R&D: Leveraging Innovation


The way to assure that your company's new product development efforts are headed in the right direction is for a select, cross-functional, executive team to establish "Success Criteria" in advance, delineating the characteristics of the ideal new product line, ranked in order of importance.

These Criteria then also serve as benchmarks for rapidly evaluating any concept proposed from any source.

F. Buggie
Lake Wylie, S.C. ]]> Reader Talk-Back Adrienne Selko http://forums.industryweek.com/showthread.php?t=1607 http://forums.industryweek.com/showthread.php?t=1607 http://feeds.penton.com/~r/IWTalkBackForum/~3/269052589/showthread.php Sat, 12 Apr 2008 17:14:26 GMT Hi, to the community. I think that it was good of Rush Limbaugh to express his views on a Black President and to prove that he is not a racist has promoted Colin Powell and Condoleezza Rice as strong candidates for presidential status. I think that it was fair on the part of Rush to say about is... Hi, to the community. I think that it was good of Rush Limbaugh to express his views on a Black President and to prove that he is not a racist has promoted Colin Powell and Condoleezza Rice as strong candidates for presidential status. I think that it was fair on the part of Rush to say about is comments on a black president. I think that we should thank him….shouldn’t we? ]]> Reader Talk-Back ndojas8 http://forums.industryweek.com/showthread.php?t=1602 http://forums.industryweek.com/showthread.php?t=1602 http://feeds.penton.com/~r/IWTalkBackForum/~3/267590320/showthread.php Thu, 10 Apr 2008 08:44:12 GMT I am seeking help and enlightenment:). Bob Parker recently contributed and article titled "Supporting Lean Supply Chains with Intelligent Operations Management Technology". In the article, Bob refers to "an oft quoted study" by NIST on waste in the electronics supply chain. I am currently researching waste and its causes for a Masters degree and am interested in including this in my research. Does anyone know where i can find the study?
Many thanks ]]> Reader Talk-Back dumboot http://forums.industryweek.com/showthread.php?t=1600 http://forums.industryweek.com/showthread.php?t=1600 http://feeds.penton.com/~r/IWTalkBackForum/~3/267151770/showthread.php Wed, 09 Apr 2008 16:49:07 GMT In the strictest sense, he knew exactly what industrialists of Japan and the Pacific Rim knew; he knew that more profits are to be made when selling to customers in lands where labor is well rewarded. But there the similarity ended; while Japan and its ilk seek to export their product to... In the strictest sense, he knew exactly what industrialists of Japan and the Pacific Rim knew; he knew that more profits are to be made when selling to customers in lands where labor is well rewarded.

But there the similarity ended; while Japan and its ilk seek to export their product to customers in lands where labor is well rewarded, Henry Ford set out to create just such a domestic market. In 1914, Ford's genius came into play when he created the $5 dollar day and a 5-day workweek; plenty of money to spend and time to spend it! Among other things it did, it challenged all industry leaders to come along; it apparently succeeded to a very large degree.

The Census Bureau published a new edition of "Historical Statistics of the United States, Colonial Times to 1970"; it was designated as the Bicentennial Edition. As a data source, it is useful for quantifying much of what went on in the lives of those who preceded us; it is also useful for review of the effects of Ford's historic decision.

http://webpages.charter.net/prologue..._1914_Wage.gif

It was plain to see, there was a new day for wage earners in America's industrial sector. Without doubt, World War I contributed to wage increases during its time, however, the wage boom carried on through the Roaring Twenties. Indeed, Ford's action put millions of new drivers on the road, and into the mud of winter and the dust of summer. Much of the roar of the Roaring 20's can be attributed to a massive highway building effort to overcome the problems of mud and dust.

Was it a boon only to those in industry? There was not a mad rush in all sectors of the economy to do just as Ford had done, that is, to double the wages of all workers. Without getting to deep into the whys or wherefores, let's just look at the results as measured and reported for gains in national output and consumption.

http://webpages.charter.net/prologue...ect_on_GNP.gif

We see that the nation as a whole benefited greatly from the increased purchasing power of labor as sparked by Henry Ford's genius – that is, his genius of 1914. Other highly industrialized nations have benefited; but they have done so not by emulating Ford, but by exporting into the markets he created. Many Third World nations have benefited, even to a greater extent, by providing cheap labor for producing exports into the more lucrative markets of the world.

What did Ford know, and how did he come to know it?


I have read a lot of, and a lot about Henry Ford; years ago, I read his autobiography, "My Life and Times" and one of the other biographies—I don't remember which. Since the emergence of the WWW, I have read much more about him; but I still have no idea of Ford's own reading habits. But from what Ford did in life, I could accept the possibility that he read Adam Smith and some early writers who followed Smith's philosophy.

The 1914 wage increase in particular smacks of Adam Smith in Smith's later years; the later years being after he had spent a quarter-century studying the nature and causes of the wealth of nations. In his early years, Smith seemed to think everyone shared more or less the same fortune in life; even the beggar who suns himself by the side of the highway. (In his first use of the Invisible Hand metaphor, Smith described his sentiments in that regard.)

http://webpages.charter.net/prologue..._Sentiment.gif

What might have seemed obvious in mid 18th-century in Scotland did not appear so obvious when the Wealth of Nations was published in 1776. Smith's more mature view of the realities of the reward of labor looked more like the following; and in that, we may catch a glimpse of Ford's genius. Could Ford have gone to school on Adam Smith?

“The liberal reward of labour, therefore, as it is the necessary effect, so it is the natural symptom of increasing national wealth. The scanty maintenance of the labouring poor, on the other hand, is the natural symptom that things are at a stand, and their starving condition that they are going backwards.” (An Inquiry Into the Nature and Causes of the Wealth of Nations, The Modern Library, New York, Book I, Chap. VIII, pp 73-74.)

But what of the alternatives Smith found to the liberal reward of labor; the scanty maintenance or the starving condition – did Smith invent them? Of course he didn't invent them; they were always there and he found them during his long inquiry. The truth is; they are still there – in the nations that flood our markets with the produce of cheap labor and whose émigrés flood our borders.

But why do those conditions still exist; were Smith's arguments so weak that the whole world could not find the better way that Smith proposed? There was no fault in Smith's logic as regards the reward of labor; some among our founding fathers were in acceptance of Smith's findings and those of Smith's more ardent disciples. But there were some among them that marched to a different drummer, and that drummer was David Ricardo.

Ricardo, in effect, gave the world a license to ignore Adam Smith and continue their long existing practices, whatever they were. Whereas Adam Smith identified three alternatives for the reward of labor, David Ricardo suggested there was only one; and that one came to be known as "The Iron Law of Wages." From the Modern History Sourcebook: "David Ricardo (1772-1823), an English banker was also an important early economist. His most well known argument was that wages "naturally" tended towards a minimum level corresponding to the subsistence needs of the workers. The attraction of this idea for factory owners is evident."

But perhaps Daniel Fusfeld best describes Ricardo’s view of the proper reward of labor. “Savings are made, not as an end to themselves, but in order to employ labor in production. Mistakes can lead to a glut of a single commodity, but demand for all other commodities is not thereby reduced. A reallocation of productive effort will occur. Furthermore, unemployment causes wages to fall, inducing business firms to hire the idle laborers with the capital created by savings. In this way, all capital is put back into use and all willing workers are once again employed. The basic cure, therefore, is not income redistribution and public works, but lower wages and higher profits.” (The Age of the Economist, 6th ed., Scott, Foresman/Little Brown, pp 47-48.)

The sad story is that David Ricardo became the defacto godfather of the Classical School of Economics. And that is the license by which much of the world continues the practice of the scanty maintenance of labor or the starving condition.

TGoodwin

PS; In my next post on this subject, I will review the process by which Ricardo displaced Adam Smith in the building of the Classical School. ]]> Reader Talk-Back TGoodwin http://forums.industryweek.com/showthread.php?t=1598 http://forums.industryweek.com/showthread.php?t=1598