1. The Unreliable Supplier Group 9 Peter Kilger Ryan Price Wayne Linford Operations Management EMBA 530

2. Murphy’s Law if anything can go wrong, it will

3. The Dilema What do you do with an Unreliable Supplier? What do you do with an Unreliable Supplier? Manufacturing Business Manufacturing Business Fix ’em or Fire ‘em Fix ’em or Fire ‘em Service Business Service Business One supplier is often the customer One supplier is often the customer You can’t fire the customer (unless you serve soup) You can’t fire the customer (unless you serve soup)

4. Customer’s Role

5. Poka-Yoke Poka-yoke () Poka-yoke ( ポカヨケ ) pronounced "POH-kah YOH-keh" pronounced "POH-kah YOH-keh" Japanese for “ mistake -proofing ” Japanese for “ mistake -proofing ” Term attributed to Shigeo Shingo of Toyota Term attributed to Shigeo Shingo of Toyota First term was actually “ idiot-proofing ”, then changed to “ mistake-proofing ” First term was actually “ idiot-proofing ”, then changed to “ mistake-proofing ”

6. Need for Poka-Yoke

7. School Bus Service Customer (supplier): School children Potential Error: Children walk in front of bus so close the driver can’t see them. Poka-Yoke: An arm

8. Grass Cutting Service Customer (supplier): Lawn care giver Potential Error: Sticking hand or foot in where the blade can cut it. Poka-Yoke: A dead-man’s switch

9. Invalid Credit Card Customer (supplier): Online Customer Potential Error: Entering a wrong credit card Poka-Yoke: An error message

10. File Cabinet Customer (supplier): Office equipment user Potential Error: File cabinet tipping over due to multiple top drawers open Poka-Yoke: Only one drawer can be opened at a time

11. Automobiles Customer (supplier): Automobile Drivers Potential Error: Leave gas cap at gas station Poka-Yoke: Fastened Gas gap

12. Clearance Signs Customer (supplier): Drivers of tall vehicles Potential Error: Vehicles crashing into bridge, tunnel, parking facility, etc Poka-Yoke: Signs or devices to inform driver of vehicle height restrictions

13. Clearance Signs

14. Table Saws Customer (supplier): Operators of Table Saws Potential Error: Operators accidentally severely injuring themselves Poka-Yoke: New technology to stop blades and prevent severe damage

16. General Steps in Fail-safing Review the process to find failures Review the process to find failures Determine the source of the failure Determine the source of the failure Setup a simple poka-yoke to eliminate mistakes Setup a simple poka-yoke to eliminate mistakes

17. Fail-safing Example: ATM

19. Fail-safing Services Mistakes Happen Poka-Yokes are a great way to shape customer behavior