I'll be brief. The thing that frustrates me the most here is that HW doesn’t know how to maintain an inventory. Anyone else?
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The planner loads the bill of material and SAP know the lead time and orders the raw material and gets built and delivered Friday swingshift handcarried to the line
Inventory at my site has been a weak spot for several years. I've never heard Ford or Chevy shut lines down for lug nuts, but we have shut lines down for items I can buy at a hardware store. However, we know the terms dictate cr---y vendors. Credit cards have saved several customers orders when individuals take an initiative to supply a site, where the system continues to fail.
Shocking!! JIT doesn’t work in Aerospace? 1990 was the decade Honeywell leadership thought JIT was great. Id--ts. Even the cleaning services folks knew it wouldn’t work.
We threw out $1mil of expired product at a HW Mexico site because they didn't adjust forecast downturn for Covid and didn't know what FIFO was. Cheaper?
Well, when you have 90-day terms that you slow pay suppliers, to always getting paid late, and maybe twice a year at best; Do you think you will be treated well as far as delivery to keep stock?
Probably not. Everyone, and I mean EVERYONE in the supply side of delivering anything to HON knows they are a slow-pay company that inflates their balance sheet, income statement, inventory-turns, and cash-flow. EVERYONE knows that when they visit a HON site and new a new ISC Manager is based in NA, that person is a "d*ad-man walking" who has a 36-month life span at best. So, the suppliers simply smile and add a net present value of negative cash flow baked into their pricing.
Inventory management in Honeywell is all about saving costs which can be returned as profits to our shareholders. As a result core items are continuously out of stock. As a result many customers switched to competitor brands. As a result many employees have left Honeywell last year.
Honeywell seems to have an excellent supply line fot suckers.
Only inventory they need.
Wow, Inventory management? That's way way way down the list.
Ordered, built, and stocked... just in time. I can understand not wanting to hold inventory as its a lost fund. But to not have enough attrition or orders to meet demand. Cmon, someone out there sucks.