GM Inside News Forum banner

1 - 20 of 175 Posts

·
Premium Member
Joined
·
8,639 Posts
Discussion Starter · #2 ·
Did you know that electronics now represent 40% of the cost of making a new vehicle?

What a shame the purchasing departments of the major automakers did not have the foresight to see what was developing in the chip making industry, to say nothing of the effects from the Covid-19 pandemic have had. This shortage is just horrible, and will set aside billions more in lost profits.









.
 

·
Registered
Joined
·
17,456 Posts
Did you know that electronics now represent 40% of the cost of making a new vehicle?

What a shame the purchasing departments of the major automakers did not have the foresight to see what was developing in the chip making industry, to say nothing of the effects from the Covid-19 pandemic have had. This shortage is just horrible, and will set aside billions more in lost profits.
I don't blame the auto makes so much as how can you foresee something like this? To me, this and the other shortages during Covid, really highlights how delicate and precarious our supply chains are. And, realistically, Covid wasn't that bad vs. other things that can happen, such as a solar storm knocking out many of our electronics that could knock us into the 18th century.
 

·
Registered
Joined
·
2,750 Posts
Just-in-time (JIT) manufacturing, also known as just-in-time production or the Toyota Production System (TPS), is a methodology aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. Its origin and development was mainly in Japan, largely in the 1960s and 1970s and particularly at Toyota.[1][page needed][disputeddiscuss], [2][page needed][disputeddiscuss]
Alternative terms for JIT manufacturing have been used. Motorola's choice was short-cycle manufacturing (SCM).[3][4] IBM's was continuous-flow manufacturing (CFM),[5][6] and demand-flow manufacturing (DFM), a term handed down from consultant John Constanza at his Institute of Technology in Colorado.[7] Still another alternative was mentioned by Goddard, who said that "Toyota Production System is often mistakenly referred to as the 'Kanban System'", and pointed out that kanban is but one element of TPS, as well as JIT production.[8]:11
But the wide use of the term JIT manufacturing throughout the 1980s faded fast in the 1990s, as the new term lean manufacturing became established[9][page needed], [10][need quotation to verify] as "a more recent name for JIT".[11] As just one testament to the commonality of the two terms, Toyota production system (TPS) has been and is widely used as a synonym for both JIT and lean manufacturing.[12

It will catch up to everyone!

I do believe this "Chip Shortage" to be somewhat Political, With US/China Tensions, spilling over to Canada with them holding the "Huawei Technologies Chief Financial Officer Meng Wanzhou"
 

·
Registered
Joined
·
5,944 Posts
I more blame the government. Haven't computers, and their component parts, been a national security issue for decades? Don't our companies, our military, our everyday lives, HEAVILY depend on them? But we outsourced them to competing, and sometimes outright hostile governments. Just to save a buck.
 

·
Registered
Joined
·
2,206 Posts
I more blame the government. Haven't computers, and their component parts, been a national security issue for decades? Don't our companies, our military, our everyday lives, HEAVILY depend on them? But we outsourced them to competing, and sometimes outright hostile governments. Just to save a buck.
This may have been by design to take out the US as the dominant world power. Should have never happened. Now with Taiwan under threat, half of the world's capacity for microchip manufacturing is threatened.
 

·
Registered
Joined
·
320 Posts
Intel is supposedly in talks with US automakers to start making chips. Apple and Intel both have new plants being built in US but won't be up and running until 2023. The US needs to be self reliant. We can do it but with government wanting to tax corperations to death is hard to do it. Just in time manufacturing with computer chips will probably not be the plan going forward.
 

·
Registered
Joined
·
224 Posts
Did you know that electronics now represent 40% of the cost of making a new vehicle?

What a shame the purchasing departments of the major automakers did not have the foresight to see what was developing in the chip making industry, to say nothing of the effects from the Covid-19 pandemic have had. This shortage is just horrible, and will set aside billions more in lost profits.









.
So you expect the executives at GM to monitor the daily operations of their company. And analyze the health of every company that they do business with?

Are you kidding me? They people you should be blaming and be pissed at are the companies the produce these chips.
 

·
Registered
Joined
·
2,846 Posts
Intel is supposedly in talks with US automakers to start making chips. Apple and Intel both have new plants being built in US but won't be up and running until 2023. The US needs to be self reliant. We can do it but with government wanting to tax corperations to death is hard to do it. Just in time manufacturing with computer chips will probably not be the plan going forward.
Right??? I mean come on...if anything the Government should be giving corporations more subsidies and tax breaks. Those execs need to make payments on their private jets and their beach house in the Hamptons. Besides, there's way more common folk in the 99% that can cough up more tax money to help the Execs...The Execs can then, contribute more money to their politicians and bada bing bada bang...new house in Tahoe! Now if only they could figure out a way to pay no taxes, then, that money would really trickle down to the common folk, right?
 

·
Registered
Joined
·
1,096 Posts
Perfect opportunity to bring back carburetors and points ignitions, like the good old days.
And yes this is saurcasm, or is it?
 

·
Registered
Joined
·
17,456 Posts
Right??? I mean come on...if anything the Government should be giving corporations more subsidies and tax breaks. Those execs need to make payments on their private jets and their beach house in the Hamptons. Besides, there's way more common folk in the 99% that can cough up more tax money to help the Execs...The Execs can then, contribute more money to their politicians and bada bing bada bang...new house in Tahoe! Now if only they could figure out a way to pay no taxes, then, that money would really trickle down to the common folk, right?
One thing for certain, raising corporate taxes WILL trickle down to the consumer in both higher prices and the cost of lost jobs as it invites more companies to shut down US manufacturing.
 

·
Registered
Joined
·
1,434 Posts
Perfect opportunity to bring back carburetors and points ignitions, like the good old days.
And yes this is saurcasm, or is it?
I keep my well-oiled, points-fired machine ready for the zombie apocalypse.

 

·
Registered
Joined
·
4,861 Posts
So you expect the executives at GM to monitor the daily operations of their company. And analyze the health of every company that they do business with?

Are you kidding me? They people you should be blaming and be pissed at are the companies the produce these chips.
Actually, this kind of "know your supply chain" stuff has become very standard in a lot of industries. I used to work in a food company - we were expected to be completely on top of our suppliers and know what they were up to before we trusted them at all. I think this is very common in industries of all kinds these days.
 

·
Premium Member
Joined
·
35,649 Posts
Actually, this kind of "know your supply chain" stuff has become very standard in a lot of industries. I used to work in a food company - we were expected to be completely on top of our suppliers and know what they were up to before we trusted them at all. I think this is very common in industries of all kinds these days.
Yeah. Doesn't that fall under the category of "Know Your Job, Know WTF You're Doing"?
 

·
Registered
Joined
·
17,456 Posts
Actually, this kind of "know your supply chain" stuff has become very standard in a lot of industries. I used to work in a food company - we were expected to be completely on top of our suppliers and know what they were up to before we trusted them at all. I think this is very common in industries of all kinds these days.
Exactly, that's why executives have all those employees. The employees will surface any potential issues and that will bubble up to the executive level for them to deal with. Plus, the executives should overall understand the entire flow and be thinking of any potential downfalls.
 

·
Registered
Joined
·
1,699 Posts
So you expect the executives at GM to monitor the daily operations of their company. And analyze the health of every company that they do business with?

Are you kidding me? They people you should be blaming and be pissed at are the companies the produce these chips.
Lol, never heard of a customer audit before?

Yes, GM should be analyzing the health of their suppliers, all corporations do that.
 

·
Registered
Joined
·
2,142 Posts
The more I read about this situation the more surprised I am at how unprepared the OEMs were. What happened with their Supply Chain Management that they didn't get some kind of indicator weeks, or months, in advance? The OEM buyers should have been informed by their supplier contacts and, in turn, the buyers should have run this up the ladder. It seems like there was a lot of miscommunication going on. But at all the major OEMs (except Toyota)? Seems a little suggestive that something else might be going on. :unsure::rolleyes::)
 

·
Registered
2014 BMW 320i; 1972 Chevy Nova
Joined
·
3,554 Posts
So you expect the executives at GM to monitor the daily operations of their company. And analyze the health of every company that they do business with?
Absolutely. That's part of those executives' fiduciary duties to GM shareholders.
 
1 - 20 of 175 Posts
Top