Saturday, July 03, 2021
EXPERIENCE SURVIVES. THEORY KILLS.
Wolf Richter shows what happens when one company LEARNS FROM EXPERIENCE:
The problem wasn’t lack of demand, but lack of supply. At the end of April, Ford announced that it would likely cut global production in Q2 by half. The entire first half was marred by production cuts at various plants. On June 30, Ford announced further production cuts for July and August. The culprit is the same every time: semiconductor shortages and parts shortages. Toyota, paragon of just-in-time inventory, blew everyone away by having stockpiled chips. Following the Fukushima disaster in 2011, which massively tangled up its just-in-time supply chain, Toyota demanded from its suppliers that they stockpile two to six months of semiconductors of all kinds for Toyota.We "learned" from Toyota's JIT crap and turned JIT into an axiom. Any company that wanted to RAISE SHARE VALUE had to eliminate every aspect of normal business. No storage, no savings, no learning, no experience, no factories, no production, no profit, no employees. Just raw abstract math and infinite debt. Will we learn from the lockdowns? No. EXPERIENCE SURVIVES. THEORY KILLS.
Labels: Experiential education, storage
¶ 10:18 PM
