ISM: US manufacturing sector slows in June | GM Q2 sales drop 15% year over year amid slow production | Commentary: Lean management requires all senses
American manufacturing slowed in June as output stalled and new orders declined amid weaker client demand, providing further evidence that the economy was cooling amid monetary policy tightening by the Federal Reserve, according to the Institute for Supply Management. The ISM index of national factory activity dropped to 53.0 in June, the lowest since June 2020, tracking with recent data showing rising interest rates dampening demand.
General Motors reported a 15% year-over-year drop in second-quarter sales auto sale as a global chip shortage and supply chain challenges left about 100,000 vehicles without semiconductors and other parts, prompting the company to withhold them from dealers. The company is easing into its production ramp-up for the new Hummer electric pickup truck, but expects output to increase later this year.
While managers often convince themselves that looking at digital data is sufficient to oversee operations, lean managers should spend time on the floor to understand how well manufacturing processes are performing, two consultants write. They note that lean practitioners use their senses, such as touching equipment and machinery, to provide baseline data that allows managers to catch small changes later.
Ultra Safe Nuclear Corp. is at the forefront of efforts to establish a reliable fuel supply chain for the next generation of nuclear reactors, and has recently launched operations at two US manufacturing facilities for core materials and its TRISO-based Fully Ceramic Microencapsulated fuel. In this article, Kurt Terrani, executive vice president of USNC's core division, dives into the company's operations, processes, technologies and objectives.
A spate of ransomware attacks on manufacturers has elevated the need for industrial control system security, especially concerning remote-access connections, writes Chen Fradkin, data scientist at Claroty. "Security professionals in these industries should verify that VPN vulnerabilities are patched, monitor any and all remote connections and enforce permissions and administrative controls related to user access," Fradkin writes.
Procurement officers can improve supply chain forecasting by mining aggregated demand data for better insights, which can then be applied to sales, inventory and operations planning, write consultants Dorothea Grimes-Farrow and Michael Conley of SGS-Maine Pointe. Their outline for this process starts with two key decisions.
Shorter supply chains help companies weather economic issues, says Nick Pinchuk, president, chairperson and CEO of Snap-on, a Wisconsin-based designer and manufacturer of high-end tools and equipment. Snap-on manufactures its products in the countries it markets them, which has helped with shipping constraints and acquiring materials to keep up with product demand.
Major West Coast ports with no potential for expansion need to turn to automation to increase their capacity, but with new labor contracts uncertain, workers could choose to drastically disrupt business by slow-walking their work until agreements are finalized, writes Peter Tirschwell, vice president of maritime, trade and supply chain at S&P Global Market Intelligence. In a worst-case scenario, port workers could go on strike, but companies would be wise to prepare for either scenario's extended period of supply chain disruptions, Tirschwell writes.
Boeing's 2022 sustainability report focuses on the manufacturer's commitment to building more efficient aircraft that can run on sustainable fuel. The report highlights Boeing's sustainability pillars, including its commitment to deliver 100% SAF-capable airplanes by 2030.
East Haven High School in Connecticut is preparing to open an advanced manufacturing lab. Assistant Principal Amy Farotti said the investment stems from the need for skilled workers in the community.
