Low cost go south

Interesting article in the Globe and Mail highlighting re-shoring and the giant strides the US has made overall in increasing productivity.

Average wage rates also don’t reflect the productivity difference between the two countries. U.S. manufacturers have achieved such high productivity that real labour costs are less now than they were in 1995 – and, for all practical purposes, operate in a huge zero-inflation zone. The decline in the value of the U.S. dollar, along with the gradual, grudging rise in the value of the Chinese Yuan, makes U.S. exports more competitive still. 

http://www.theglobeandmail.com/report-on-business/commentary/neil-reynolds/us-manufacturers-are-leaving-china-behind/article2041599/ 

The full Boston Consulting Group report estimates that net manufacturing labour costs between the US and China to converge in 2015.  That is not far away.  Rising Chinese labour costs (15-20% annually) and higher shipping costs have eroded the Chinese cost advantage.  Increasing US productivity has lowered US costs. The situation for the US especially their low cost / non unionized States looks optimistic.  How the US will be able to tool and more importantly skill up over the next decade will be interesting to watch.  I suspect it may be harder than it should as educators and politicians do not now see the opportunity that may be ahead of them.
Where Canada sits in comparison is probably not favourable, there historically between a 25% productivity gap between the Canada and the US.  And where Alberta sits within this equation is probably worse. 
Here in Alberta we have very different labour challenges to the US with Oil and Gas having an almost insatiable appetite for labour often at any price this leaves the rest of Alberta industry in a difficult situation.  In competing with foreign (including US) companies we have little control of labour cost, the only function we do have control of is productivity. 
What can we do about it?  Alberta Productivity are working hard at raising awareness.  How much change is happening in Alberta is harder to gauge, time will tell.

Biggest progress bar in Calgary possibly the world

I've enjoyed watch the Bow go up.  Watching it climb over the horizon when walking along nose creek or other parts of town.  It is sign of the drive that makes Calgary the city it is.  Looking at the side of it from the North I noticed the floor numbers which show how far the building has progressed.

Awesome Soviet safety posters

Just awesome

Source - http://www.howtobearetronaut.com/2011/03/soviet-accident-prevention-posters/

Green Chips ????

Excellent article in the Calgary Herald (I know a rarity), syndicated from somewhere (Pepsico publicity department?).
Can you beat this from Walkers Crisps (Chips) in the UK:

Potatoes are 80% water, most of which is lost as steam when 350,000 tons of spuds are sliced and fried annually at the factory. Seal hopes to condense the steam, possibly with a system of cooling tubes, and reuse the captured H2O to clean equipment, help wash potatoes along manufacturing lines, and even irrigate the shrubs outside. The method could save the plant $1 million a year. "Lots of people think we're nuts," says Seal. "We're trying to push the boundaries to make a difference."

Joke is for the Brits only

There are 3 main reasons to do Green manufacturing; 1 for your own ethical reasons, 2 to look good, generally known as Green-washing and 3rd to improve your environmental impact and save money.

These examples hit reason 3 head on. Green shouldn't be about looking green but being green and putting more green-back into your pocket.

Read more: http://www.calgaryherald.com/business/smart-shift/fp/sustainability+winning+over+CEOs/4556285/story.html#ixzz1Il1a7PVi

Poke Yoke, Bikes and Safety

Poke Yoke, bikes and safety don't seem a natural combination.  The rear wheel on my bike I knew was coming to the end of its life, when that would be I didn't know.  And the integrity of a real is an important issue, a real safety issue.  With lots of stop start cycling in Calgary with all the stops signs and the age of the wheel, the wheel has undergone a lot of braking action. Most brakes on bikes use the rim as the braking surface. This surface wears and at some point the rim either fails or the braking surface detaches from the rim. This is what happened to me, the braking surface started to come loose and each time the wheel rotated it rubbed up against the brakes.  Letting me know something serious was up.
Next step was to get the wheel fixed, so off to Lifesport in Kensington.  Wheel building is a skilled job and one best left to the experts.  First step was to choose a new rim. For the type of use this wheel gets (all year cycling and some cyclocross racing) there were two choices the Mavic Open Sport or Open Pro. I'm a snob, I was replacing a Open Pro rim so I went with the Pro again, but I did think about it. Ok only for a couple of miliseconds.

The Sport comes with this lovely black line along the rim:, its actually a wear groove :

Actually its a wear groove about 1.5mm deep. When you can no longer see or more likely feel with your fingers its time to replace the rim and stay safe.
The Pro is lighter and doesn't have the structural shape to carry a wear line

Of course I paid the extra $30 and went with the lighter rim, but no Poke Yoke wear groove and a little less safety knowledge down the road.

.... and the place should be obvious

One of the great things about my job and about life in general is I am always learning.  While glancing through Sundays paper online looking at the cooking I noticed an article on "Managing your clutter", I took a moment out to read it and realized in 20 years of doing 5S here I was learning something new. Thanks Guardian.

From the article emphasis is mine

HOW TO DECLUTTER

There are two general rules you need to absorb before you throw yourself into a major prune: everything should have its own place and the place should be obvious; any system created must be one that can be maintained. Your aim at the end of a declutter is to know where everything is. That's everything, from your last phone bill to the extra scourers.

These I know are the tenants of 5S.  My appreciation is how they are said and the emphasis given. How many 5S implementations end up as just a clearing out and cleaning up exercise, and how many more die on the vine for no good maintenance system?

The article is great and I would recommend you make a minute to read it. 
http://www.guardian.co.uk/lifeandstyle/2011/mar/28/managing-clutter 

Go see II

Following up from the blog on the falling over packages the team doing the Muda walk, took the time and worked out where the packages where falling over.  The place was marked with a piece of tape and and the end of the run a better look was taken.  That better look uncovered a small piece of paper that was stuck under the conveyor line.  Paper was removed and the falling package issue 'disappeared'. Well done to the guys.

The important issue here is that we could have talked about the issue as much as we wanted away from the line, holed up in meeting room, drawing Ishikawa (fishbone) diagrams, filling out A3 problem solving sheets and allocating tasks without understanding and hence being able to solve the problem.  Very often the most important thing we can do is go out to the line and look at the problem.  Then we can ask and answer questions, is the area well maintained, is 5S up to standard, are work instructions nearby. where is the problem happening, when is the problems happening?

I love the fact that Gemba in Japanese also means the crime scene, having been the work place of the criminal and now being the work place of the detective.  For us the crime was the wastes being created (motion, transport, over processing, waiting, defect).  By being detectives and going to the Gemba the team were able to solve the crime.