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Old 08-02-2007, 07:08 AM
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Default Another Example of Inefficiency

FOXNews.com - Fisher-Price Recalls Nearly 1 Million Toys Due to Excessive Lead Paint - Business And Money | Business News | Financial News

Outsourcing may be the answer to line the pockets of our politicans and corporate leaders...CEO's.

Do you realize the hundreds of millions of dollars American companies spend on consultants...which our companies our leaders hire to "tell them how to do their jobs??????" How much do the leaders of our corporations make a year...????? Think about it....? Do you realize how much money that wastes, not to mention, a loss of knowledge for their specific jobs? A loss of education?????

And remember, all of the above is to save money...can you imagine,when they outsource our jobs to another country, exactly how much money they are saving...remember, inspections in a 3rd world country, doesn't exist...therefore, we're not only getting shoddy materials and food, but materials that will be tainted. Not to mention, outsourcing certainly cuts expense, but the quality of material and workmanship is definately jeprodized.

What are your thoughts...does anyone else think of these things?

Does it worry you, about the quality of not only toys for our children, but our food. Wasn't the tainted dog food a wake up call?

I don't understand American's that we are so preoccupied, we don't sit down and not only evaluate these issues but ask questions about them...ask ourselves questions...

I ponder the awareness of the American public...we have become I fear, to lazy to think for ourselves...while our leaders take advantage of us...

This isn't about democrates against repulicans or visa versa, freinds, this is about ALL our leaders....and when we stop fighting amongst ourselves, maybe, just maybe, we will then start accomplishing something.

Thank you, sincerely for taking the time to read.

Creme
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Old 08-02-2007, 08:29 AM
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I worked for a company, which shall remain nameless, that moved to Mexico. Let me explain.

I was the Process Engineering Manager for a company that made telephone cables, computer cables, fiber optics jumpers, wireing harness for robotics for chip manufacturing.

We were in the Dallas area. Our customers demanded that we have at least 20% of our manufacturing done in a low cost region. So the company bought plants in Mexico and in China. They figured Dallas for cables on demand, Mexico for cables a week out and China for standard cables that we made a lot of. In reality?

When 9/11 happened, the Trade Center fell on one of the largest trunks in the region. It cut off telecommunications to Wall Street. We had orders by 11 o'clock that day. We had cables on site within 24 hours.

The Mexico plant? You can't keep material in Mexico for more then so many days. If you do, you get taxed, heavily on it. So they set up a warehouse on the Texas side and manufactoring on the Mexico side. So now, when you want a cable, your order on Monday. The warehouse preps the package and waits for the customs inspector. 2-3 days. It is then trucked over the river. 1 day to build it. Now it awaits the other customs inspector. 2-3 days. Figure the cable is going to take 10 days before it is shipped.

China plant? Put cable on a ship and take 32 days to go to China. Same tax restrictions so you don't want to stock pile material. a day to build, 32 days back.

The company finally moved all of it's assets to Mexico and China and didn't invite any of us workers. So the leading manufacturer in the US is no longer in the US. If 9/11 happened today? Wall Street would be shut down completely for 10-65 days.

Outsourcing? What took us 75 employee's in Dallas, to produce $300,000,000 a year. Took over 300 employee's in Mexico. Don't know about the numbers in China. And they produce less then half of that because nobody wants to wait that period of time for products. I wonder what their numbers are now?
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Old 08-02-2007, 08:38 AM
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Quote:
Originally Posted by jgussler View Post
Outsourcing? What took us 75 employee's in Dallas, to produce $300,000,000 a year. Took over 300 employee's in Mexico. Don't know about the numbers in China. And they produce less then half of that because nobody wants to wait that period of time for products. I wonder what their numbers are now?
Indeed, and I also wonder about the quality...yanno, over here, when we manufacture, lets say one piece of perforated pipe....that pipe has a recipe for ingrediants....and I'm wondering what recipes, so to speak, they use to manufacture products in 3rd world countries....?
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Old 08-02-2007, 08:47 AM
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Quote:
Originally Posted by cremebrulee View Post
FOXNews.com - Fisher-Price Recalls Nearly 1 Million Toys Due to Excessive Lead Paint - Business And Money | Business News | Financial News


Do you realize the hundreds of millions of dollars American companies spend on consultants...which our companies our leaders hire to "tell them how to do their jobs??????" How much do the leaders of our corporations make a year...????? Think about it....? Do you realize how much money that wastes, not to mention, a loss of knowledge for their specific jobs? A loss of education?????


What are your thoughts...does anyone else think of these things?

Does it worry you, about the quality of not only toys for our children, but our food. Wasn't the tainted dog food a wake up call?

I don't understand American's that we are so preoccupied, we don't sit down and not only evaluate these issues but ask questions about them...ask ourselves questions...

I ponder the awareness of the American public...we have become I fear, to lazy to think for ourselves...while our leaders take advantage of us...

This isn't about democrates against repulicans or visa versa, freinds, this is about ALL our leaders....and when we stop fighting amongst ourselves, maybe, just maybe, we will then start accomplishing something.

Thank you, sincerely for taking the time to read.

Creme
You have three different issues merged in a single discussion topic, outsourcing, use of consultants and product/food safety. I want to address each separately and briefly.

Outsourcing is actually OK with me because it expands world market production and consumption. Over the long term, an improved Chinese or any other economy equals long term job growth the world over. With the long term falling dollar our production and component processes get more competitively priced, and if you look at job and income growth at the aggregate level things really aren't bad at all. Folks got overextended in real estate due to their eyes being bigger than their wallet, and believing investment ideas that others may find odd, but that happens and then corrects itself, at some level of individual pain and inconvenience.

Use of consultants is primarily for two purposes, neither having to do with getting sound advice. A consultant proposal of how you should proceed insulates the top managers/directors/board from personal criticism for decisions because they just point to the third party, independent consultant report advising them of actions. Actually, back door discussions frequently and perhaps usually steer consultants to draw and draft the conclusions managers/directors/board members have already decided to do, but this provides political cover. The second issue is that it is part of a network, and top managers/directors/board members participate in other company boards too, providing cover for each other. Take a look at who sits on each board, and how companies provide consultant services for each other and see this for yourself.

The third issue is product and food safety, and this is simply inadequate protection from your elected officials, much like patrolling the national boarders. You elected them, and if you don't think they are doing their job you have the ability to send the message at election time.
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Old 08-02-2007, 08:52 AM
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Originally Posted by cremebrulee View Post
Indeed, and I also wonder about the quality...yanno, over here, when we manufacture, lets say one piece of perforated pipe....that pipe has a recipe for ingrediants....and I'm wondering what recipes, so to speak, they use to manufacture products in 3rd world countries....?
Excellent point. In this case, when we transitioned everything South, all of the material, and the processes were US. Just move US material across the line, use US processes, move finished product back to Texas to be shipped. Just labor used south.

But how long is it going to be before somebody says, "hey, we can buy that compound cheaper from here."

Also, because it originates here, and ships from here, it carries a label on it that says, "Made in the USA".
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Old 08-02-2007, 09:06 AM
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Here, the Ford plant (did F-150's) just got shut down because it "cost too much" to continue making them there. There were many people there making $30+/hr because of the Union there. Now, the F-150's *the ALL-AMERICAN* truck is being produced in Mexico.

All in all, it seems companies are sacrificing quality for money-saving. It lines their pockets and consumers' products aren't lasting as long, so they end up having to buy another when the original breaks or runs down.

For instance, the quality difference between a desk or entertainment center made in the 80's vice one at a <i>similiar</i> price (including inflation) today.
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Old 08-02-2007, 09:06 AM
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Quote:
Originally Posted by NewToCA View Post
You have three different issues merged in a single discussion topic, outsourcing, use of consultants and product/food safety. I want to address each separately and briefly.

Outsourcing is actually OK with me because it expands world market production and consumption. Over the long term, an improved Chinese or any other economy equals long term job growth the world over. With the long term falling dollar our production and component processes get more competitively priced, and if you look at job and income growth at the aggregate level things really aren't bad at all. Folks got overextended in real estate due to their eyes being bigger than their wallet, and believing investment ideas that others may find odd, but that happens and then corrects itself, at some level of individual pain and inconvenience.

Use of consultants is primarily for two purposes, neither having to do with getting sound advice. A consultant proposal of how you should proceed insulates the top managers/directors/board from personal criticism for decisions because they just point to the third party, independent consultant report advising them of actions. Actually, back door discussions frequently and perhaps usually steer consultants to draw and draft the conclusions managers/directors/board members have already decided to do, but this provides political cover. The second issue is that it is part of a network, and top managers/directors/board members participate in other company boards too, providing cover for each other. Take a look at who sits on each board, and how companies provide consultant services for each other and see this for yourself.

The third issue is product and food safety, and this is simply inadequate protection from your elected officials, much like patrolling the national boarders. You elected them, and if you don't think they are doing their job you have the ability to send the message at election time.
I thank you for reading and commenting but strongly disagree with your points...and all 3 issues to me, at this present time are trends, but American's will eventually learn, they are trends that are not on behalf of American citizens, they are though, on behalf of those who will most likely benefit by these decissions.

Outsourcing is becoming our nation's 2nd defincincy...and will result in two problems...1. quality of products will and already are being jeprodized.... 2. a loss of hands on experience and knowledge here in America

You said....

inadequate protection from your elected officials, much like patrolling the national boarders. You elected them, and if you don't think they are doing their job you have the ability to send the message at election time.

Good point, but moot, b/c we only get to choose from two candidates hardly a choice...

Consultants: Yes, you are correct, it is a choice by American Corporations to use them to keep themselves from getting suied....but, in the same, your using people who are book fed, and not hands on experience, so we are loosing someting in the process...not to mention...we pay our leaders to know their jobs...and they are getting paid anywhere from 300,000.00 a year to know that job....then add on the millions of dollars they pay to consultants to come in a perform studies to tell them how to go about doing their jobs??????? This is Most certainly a Trend in the U.S. resulting from a hugh deficency in our judical systems...b/c judges appease attorneys instead of throwing all the ridiculous law suits out of court.

Do you now see the ripple effect that I so often speak of...we are all connected, and any decission you make, is not about only you, but will result in effecting so many people's lives, in either a positive way, or a negative way.

Bottom line is...while we're all running around trying to figure out what to do, we are loosing leaders that are able to make decissions...and sometimes those decissions are unpopular, but when they are made for all the people in comparrison to the few...they will be successful...and that to, is what I'm pointing out...

there is no better experience then hand's on experience, and with the loss of that, we are also loosing people who do not fear making decissions...or the capability of taking a chance...

We loose all the way around...and the ripple effect will of course be the next generation....who will change things around once again...hopefully and realize, it didn't work for the betterment of the country this way....global is ok, but now your talking controlling an entire world, instead of a country...that is many different opinions and culture of a great magnitude? I dunno...doesn't sound sound to me?

Creme
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Old 08-02-2007, 09:09 AM
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Quote:
Originally Posted by jgussler View Post
Excellent point. In this case, when we transitioned everything South, all of the material, and the processes were US. Just move US material across the line, use US processes, move finished product back to Texas to be shipped. Just labor used south.

But how long is it going to be before somebody says, "hey, we can buy that compound cheaper from here."

Also, because it originates here, and ships from here, it carries a label on it that says, "Made in the USA".
Yes, and again, consider the lack of inspections.....compared to what we had overhere, hence, tainted dog food, tainted toys, tainted foods, now, consider what people with a bad intent toward our country could do...wow, it could be catistrophic...we are talking here, an entire break down of not only all our systems...but a lack of knowledge about them....it isn't going to work, and the end result, could be our demise? All in the name of greed, and the impression of sucess....ahhh hem, or what we deem to be success, 500,00.00 homes, limos..travelling from point A to Point B in a helecopter but hey, farm all your work out to 3rd world countries so you can put more money in your pocket????? Sheesh.....and all the while a deterrent of illegal immigration...and crime running rampid...

it all ties in....all in the name of companies transforming their businesses and operating models....yeah, right....]to me this goes against loyalty to homeland and family....and will result in the end, with great problems...cost efficency, and a lack of quality....loss of the ability to problem solve, loss of knowlege which is loss of many other things that made this great country...all for the name of the dollar...

If your leaders are corrupt, so to, will your people be.

The trickle down effect....
Now excuse me, while I retreat to that dirt floor cabin in the forests...with all the animlas....

Last edited by cremebrulee; 08-02-2007 at 09:19 AM..
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Old 08-02-2007, 09:35 AM
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Quote:
Originally Posted by Kuharai View Post
Here, the Ford plant (did F-150's) just got shut down because it "cost too much" to continue making them there. There were many people there making $30+/hr because of the Union there. Now, the F-150's *the ALL-AMERICAN* truck is being produced in Mexico.

All in all, it seems companies are sacrificing quality for money-saving. It lines their pockets and consumers' products aren't lasting as long, so they end up having to buy another when the original breaks or runs down.

For instance, the quality difference between a desk or entertainment center made in the 80's vice one at a <i>similiar</i> price (including inflation) today.

Its greed, living over our means, and we're destroying ourselves, loosing our jobs....it isn't only unions, it is also about everyone needing more and more money....
Why do you think medical costs, insurance costs, drug costs, materials for buidling homes are so darn expensive...? If the union guys were making 30.00+, how much do you think their Execs were making? do the math, it is ridiculous...

Its all about greed and again, the ripple effect of this is a loss of so much...it effects so many other things and causes so many other problems, but American's are serioulsy loosing the ability to problem solve and foresee this
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Old 08-02-2007, 10:14 AM
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Quote:
Originally Posted by cremebrulee View Post
Outsourcing is becoming our nation's 2nd defincincy...and will result in two problems...1. quality of products will and already are being jeprodized.... 2. a loss of hands on experience and knowledge here in America
Creme
As mentioned hands on experience is the key. Fewer and fewer people are capable of thinking outside of the box.
With so many manufacturing jobs leaving the US the term “American Ingenuity” is disappearing. Factory work was once the building blocks of the American worker. Some of these workers would take these hands on experiences and go on to create a “better mouse trap”.

The “real” development of American manufacturing was done by the workers doing the “hands on” they improved the process and perfected the product. Many of these workers had an “on the job” education where “common sense” was more valuable than “theory memorization”. The “educated” engineers took all the credit, but they got most of the ideas from the workers telling them what was happening and what needed to be changed.

Sadly much of the hands on work that was once done by the “mighty middle class” has gone to other countries. Now on order to get a job that pays enough to stay in the middle class you have to have a college degree. I’m not bashing college, but not everyone is cut out for pushing paper. With all the manufacturing leaving fewer students are willing to risk getting a degree in a discipline that has fewer job prospects waiting at the other end.

If America loses it’s manufacturing base then America will lose it’s ability to be self sufficient.
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