The lecture on supply chain was more geared toward a high school business class and did not add much value to my over all supply chain knowledge. The tour to Automotive Axle was awesome. Automotive Axle (AA) is a US JV that was previously a Rockwell Automation Company, that now is a JV with Arvin Meritor.
The CFO went through the Company’s history and cost structure. The amazing fact was the $0.90/ hr average labor rate. Also the tour of the factory was very amazing. Since AA has just started their lean journey, there are some very evident flow issues; however at $0.90 per hr labor they can afford some inefficiency. There is not much for a safety program there. Material handlers were loading trucks in flip flops and painters were in the booths with masks, welders were given helmets but held them in their hands 6 inches from the welding area, not an OSHA approved safety program.
The highlight of the evening was another American dining experience at Pizza Hut where their pies are just like we get at home. It is nice to experience 1/3rd of our meals in a familiar setting.
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