Yeah, if you ever need stories on just how stupid senior managers can be, look at supply-chain case studies. And don’t blame the accountants: it’s their job to report costs, but it’s the job of the managers to deal with risk. And running ultra-lean JIT comes with the risk that a five-minute delay in delivery of some critical component can shut down your line. It’s not the beancounters’ job to have appropriate plans in place to prevent that from happening. It’s the biz-school bell-ends who are asleep at the wheel or thinking that they’ll just pretend there’s no risk and hope they’re lucky enough to translate those low running costs into their quarterly bonuses. And the contingency planning if the supply chain does glitch? Often it goes no deeper than having a scapegoat lined up.
Yeah, if you ever need stories on just how stupid senior managers can be, look at supply-chain case studies. And don’t blame the accountants: it’s their job to report costs, but it’s the job of the managers to deal with risk. And running ultra-lean JIT comes with the risk that a five-minute delay in delivery of some critical component can shut down your line. It’s not the beancounters’ job to have appropriate plans in place to prevent that from happening. It’s the biz-school bell-ends who are asleep at the wheel or thinking that they’ll just pretend there’s no risk and hope they’re lucky enough to translate those low running costs into their quarterly bonuses. And the contingency planning if the supply chain does glitch? Often it goes no deeper than having a scapegoat lined up.