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Summary and Comments

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Category: 

Domino_Effect

Date: 

1998-04-06 21:42:37

Subject: 

General Motors Has 85,000 Suppliers. Is One Compliant?

  Link:

http://www.smh.com.au:80/daily/content/980323/business/business3.html

Comment: 

This report from Australia indicates the vastness of the problem. If a supplier is not compliant, can this shut down a production line?

What if, say, 15,000 aren't compliant?

This problem cannot be solved. Yet very few people want to admit this. The problem is systemic.

Anyone who says y2k can be solved should provide a cogent explanation of how just one firm, GM, could solve it.

The burden of proof is on the optimist.

This is from the SYDNEY MORNING HERALD (March 23).

* * * * * *

If one cog in the supply chain falls out of step, the results will disrupt the industry globally.

"The supply chain is a highly integrated system and all the stars are aligned at the same time and everything is set around a single deadline," says Mr Pauley.

A vehicle manufacturing plant would face chaos if suppliers with just-in-time inventories and delivery systems set off a chain reaction by failing to make the deadline.

The problem flows through the system, including suppliers of everything from steel and paint to the rubber gloves worn by the workers.

Mr Joe Klimaski, project manager for the General Motors year 2000 supplier readiness program, said GM's supply chain had up to 85,000 suppliers, many of whom also supplied other car companies.

Link: 

http://www.smh.com.au:80/daily/content/980323/business/business3.html

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