For those who are not baseball fans, let me give you a quick update: The Chicago Cubs are really good this year. They won over 100 games in the regular season and have now jumped out to a 2 – 0 lead in their best-of-five series with the San Francisco Giants. FiveThirtyEight has them as the favorite to win the World Series.
If all of that is news to you, you should also be told that the Cubs have, frankly, sucked for a long, long time. They haven’t won a pennant since 1945 and a World Series since 1908. There is even a short story (The Last Pennant Before Armageddon) tying the Cubs winning a pennant to the end of the world. (To answer the obvious question, the World Series is scheduled to start on October 25th. Barring rain delays, the last possible game would be on November 2nd. The US presidential election is on November 8th.)
So if the Cubs make it to the World Series, there will be a lot of excitement around here. If they actually win the Series, Cook County will likely shut down for a month. And that all raises a question: How many Cubs t-shirts can be sold?
There’s a lot of ways of thinking about that but I think that few would argue that information should be exchanged digitally. In a world in which products are designed and optimized in a computer, it is hard to see why diagrams and blueprints should have to be printed out. Except as Marketplace reports, not everyone is necessarily ready for a digital world (Legacy equipment still hinders digital manufacturing, Jan 28).
The last few years have been rather rough on Takata. Once the firm could accurately have been described as a fairly anonymous auto parts supplier. Your car may have contained some components made by Takata, but you were likely unaware of just what they were. That has changed rather significantly has it has come to light that the firm has produced a large number of defective airbags. Defective in the sense that they explode and send shrapnel into the car as opposed to inflating. To date, numerous automakers have recalled over 24 million vehicles in the US. To put that number in perspective, total car sales in the US set a record at 17.5 million last year.
As you might expect, the firm has been involved in the requisite activities of apologizing and ass-covering. As part of the latter, they commissioned a committee led by a former transportation secretary to review how the firm has managed. The resulting report doesn’t pick a particularly nice picture (Takata Lacks Processes for Tackling Air-Bag Defects, Panel Says, Wall St. Journal, Feb 2).
Takata Corp., the supplier behind defective air bags in millions of recalled vehicles, lacks clear processes for tackling potential safety defects and needs improved manufacturing methods, an outside panel the company commissioned found.
Takata employees tasked with raising safety concerns don’t have well-defined roles and rely on reports from auto makers about quality problems instead of ferreting out problems themselves, according to the report from the panel led by Samuel Skinner, the former transportation secretary under President George H.W. Bush.
The report found Takata lacked its own program for spotting defects in air bags once they’re installed in vehicles that now typically stay on U.S. roads for more than a decade.
I have been teaching the MBA core operations class this quarter. This week we just wrapped up talking about bottlenecks and capacity. I consequently found an article in The Guardian rather timely (The tube at a standstill: why TfL stopped people walking up the escalators, Jan 16). TfL in the article title refers to “Transport for London” which runs the Underground. The article reports on an experiment run at their Holborn station.
The experiment in question gets to a bit of escalator etiquette. Specifically, when using an escalator, should people stand to one side so those in a hurry (or in need of a work out) can walk up the escalator or should people patiently stand two abreast? Now if you prefer to chug up the stairs, you clearly lose under the second scenario. However, can it be the case that accommodating the walkers cost the system as a whole an unacceptable amount of capacity?
It’s all very well keeping one side of the escalator clear for people in a rush, but in stations with long, steep walkways, only a small proportion are likely to be willing to climb. In lots of places, with short escalators or minimal congestion, this doesn’t much matter. But a 2002 study of escalator capacity on the Underground found that on machines such as those at Holborn, with a vertical height of 24 metres, only 40% would even contemplate it. By encouraging their preference, TfL effectively halves the capacity of the escalator in question, and creates significantly more crowding below, slowing everyone down.
Last week, we had a post on how the rise of e-commerce was messing with college dorms. Now the Wall Street Journal is reporting that the influx of package deliveries is also causing headaches at apartment complexes across the country (Web-Shopping Deluge Boxes In Landlords, Oct 20).
The onslaught has turned management offices of apartment buildings into de facto receiving centers as landlords grapple with recording packages, tracking tenants down to pick them up and finding places to store the parcels.
Camden Property Trust, the 14th-largest U.S. apartment operator by number of units, stopped accepting parcels at all of its 169 properties nationwide this year. Executives said the Houston-based landlord, which has roughly 59,000 units in 10 states and the District of Columbia, had received almost a million packages in 2014, and the rate was increasing by 50% a year. …
Each package results in about 10 minutes of lost productivity, Camden executives estimated. At a rate of $20 an hour for employee wages, that amounts to about $3.3 million a year, they said.
Beyond the staff costs, there are a number of other complications. For example, having the office at a complex open normal business hours may suffice for most things, but if residents leave for work before 8:00AM and don’t get home before 6:00PM, coordinating pick up can be a hassle for both the landlord and the resident. There is also a question of liability. If the office signs for a package as a courtesy for a resident, who is on the hook when it somehow goes missing? Given that these problem scale with more delivery, I can understand the desire to refuse to accept packages. Of course, that decision is not terribly popular with many renters. The article has multiple quotes from people who now have packages delivered to a relative’s house or who are just itching for their lease to be done so they can move to a more accommodating complex. Continue Reading »
The big news in the restaurant world this past week is that Danny Meyer, one of New York City’s most prominent restaurateurs, is going to be abolishing tipping at all his establishments. He discussed the move on CBS.
(He also had an interview on CNBC that covered a lot of the same ground plus a few other points that I will mention below.)
Tipping — at restaurants and in hotels — is something we have covered before. As much as I like the idea of linking pay to performance, I think that tipping is a pretty miserable custom. Meyer touches on some of these points in explaining why he is banning the pourboire. But he also highlights a completely different issue: Attracting and retaining talent.