Thread regarding Honeywell International Inc. layoffs

Supply Chain Operations in Aero

Forget about what you learned about Supply Chain Management in school. Here's how Honeywell Aero does it.

Supplier A has been making a widget for 3 years and has finally got the start-up bugs worked out. But HON says the widget costs too much so we want you to host a 3 day workshop to find ways to reduce cost. After the exercise the recommendation is to change the drawing to eliminate an unnecessary process step, which was proposed 3 years earlier when A started making the part. HON says, costs money, no can do.

So HON decides to look for another supplier and auctions the part off. Supplier B agrees to make the part for a little less cost than A. To maximize savings, HON immediately stops buying from A and places all production orders with B. B finds the same start-up issues as A did 3 years earlier, and gets behind in their orders.

Soon deliveries of the doo-hicky platform to BOEBUS is delayed because of the widget. HON tells BOEBUS it's the supplier's fault and will begin an intensive program involving HON quality engineers at the supplier site every day and preparation of charts for HON Management to review weekly. After 4 weeks the charts tell the same story (start up problems and drawing change would improve the process). HON tells BOEBUS it's the HON quality engineer's fault for not making any improvements, so he's been "elbowed". Also, HON is bringing in more Senior Directors to review the charts.

BOEBUS begins to fine HON for late deliveries and management becomes concerned about the bottom line. Secretly they plan to fire all the "elbowed" employees before the end of the year, avoiding the deferred 401K contributions to those individuals. Profit is positive once again, shareholders are happy, and Sr Managers get their bonus.

And that's how it's done at Honeywell Aero!

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| 3737 views | | 13 replies (last ) | Reply
Post ID: @OP+ScnkW0M

13 replies (most recent on top)

MM has a different goal he is measured to. His is to purge and raise cash. He seems to be doing ok job at it. Everything else is workers' fault.

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Post ID: @7xvr+ScnkW0M

Great point 6rdl! Why does MM still have a job when MS got fired for the same situation?

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Post ID: @7iwe+ScnkW0M

Don't forget the detail where,

during continuous crisis mode,

it is helpful to have

not just one

daily morning status roundtable telecon,

one hour long,

and sometimes a half-hour makeup telecon for one of the many managers who missed the first telecon because they were on another telecon for another more dire crisis,

but to often have a second one hour telecon at the end of the day,

so the following morning everyone gets harangued about not getting anything done since last night's status call

and there is a mandate to work 2 hours minimum EEI (unpaid overtime) because not enough is getting done,

and there are helpful reminders that we need better productivity,

and everyone needs to provide a daily work achievement summary, and daily updates on the communal Excel status spreadsheet,

as well as a weekly work achievement highlights/lowlights self-assessment summary

email

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Post ID: @6zjc+ScnkW0M

Snr. Managers aren’t taking in hefty bonuses as many may think. Contrary to what ppl say, managers are probably getting less than their employees in bonuses. Sad but true fact.

Past dues are indeed at a all time high which is strange that the previous VP was let go because of the same reason while the current still seems to hold on to the reins pretty darn firm.

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Post ID: @6rdl+ScnkW0M

MM has totally f’d up ISC since he took over. People fired or quit. Past due at all time high. How does he still have a job?

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Post ID: @4oed+ScnkW0M

"The further a society drifts from the truth, the more it will hate those that speak it." — George Orwell

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Post ID: @3qwf+ScnkW0M

...and the competition that understands the importance of Nash Equlibriums will eat HON's lunch.

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Post ID: @2jiw+ScnkW0M

Nailed it except for one thing. MM cries "not my fault," rest of ALT afraid to tell him he's wrong, tells their orgs to work harder and smarter to make up for MMs mistakes, and finance told to make magic in the financials. DA happy. Wall Street happy. Rank and file employees miserable and getting out, if not already RIFd as OP astutely pointed out.

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Post ID: @1ggw+ScnkW0M

You nailed it! And not just in Aero. Pathetic really.

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Post ID: @1wbm+ScnkW0M

Bravo, bravo!

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Post ID: @1mnd+ScnkW0M

It really was, a long time ago, a great place to work, where one could look forward to going to work in the morning.

The description of Supply Chain Operations in Aero is accurate from my observations.

Sad.

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Post ID: @vso+ScnkW0M

Wow! Spot on. I could have named Honeywell here even without you mentioning them

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Post ID: @gqk+ScnkW0M

Not fake news

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Post ID: @znt+ScnkW0M

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