Just-in-time delivery

36 results back to index


pages: 282 words: 92,998

Cyber War: The Next Threat to National Security and What to Do About It by Richard A. Clarke, Robert Knake

barriers to entry, complexity theory, data acquisition, Just-in-time delivery, MITM: man-in-the-middle, nuclear winter, packet switching, RAND corporation, Robert Hanssen: Double agent, Ronald Reagan, Silicon Valley, smart grid, South China Sea, Steve Jobs, trade route, undersea cable, Y2K, zero day

Far beyond e-mail or word processing, these business practices involved automated controls, inventory monitoring, just-in-time delivery, database analytics, and limited applications of artificial-intelligence programs. One Silicon Valley CEO told me enthusiastically in the late 1990s how he had applied these techniques to his own firm. “Somebody wants to buy something, they go online to our site. They customize the product they want and hit BUY. Our system notifies the parts makers, plans to ship the parts to the assembly plant, and schedules assembly and delivery. At the assembly plant, robotic devices put the product together and put it in a box with a delivery label on it. We don’t own the computer server that took the order, the parts plants, the assembly plant, or the delivery aircraft and trucks. It’s all outsourced and it’s all just-in-time delivery.” What he owned was the research department, the design team, and some corporate overhead.

To test whether a cyber warrior could destroy a generator, a federal government lab in Idaho set up a standard control network and hooked it up to a generator. In the experiment, code-named Aurora, the test’s hackers made it into the control network from the Internet and found the program that sends rotation speeds to the generator. Another keystroke and the generator could have severely damaged itself. Like so much else, the enormous generators that power the United States are manufactured when they are ordered, on the just-in-time delivery principle. They are not sitting around, waiting to be sold. If a big generator is badly damaged or destroyed, it is unlikely to be replaced for months. Fortunately, the Federal Electric Regulatory Agency in 2008 finally required electric companies to adopt some specific cyber security measures and warned that it would fine companies for noncompliance up to one million dollars a day. No one has been fined yet.


pages: 266 words: 80,273

Covid-19: The Pandemic That Never Should Have Happened and How to Stop the Next One by Debora MacKenzie

anti-globalists, butterfly effect, coronavirus, COVID-19, Covid-19, creative destruction, crowdsourcing, dark matter, Donald Trump, European colonialism, gig economy, global supply chain, income inequality, Just-in-time delivery, megacity, meta analysis, meta-analysis, microcredit, planetary scale, reshoring, supply-chain management, uranium enrichment

Similarly, protective medical gear and the active ingredients for common, emergency drugs used to be produced widely. Michael Osterholm is an epidemiologist who has studied the possible impacts of pandemics. He told me that now, a few factories in China make nearly all of these vital supplies, as the global industry takes advantage of low labor costs and economies of scale. This is efficient. Hospitals rely on constant, just-in-time deliveries of these items, too: keeping stocks costs money, so this is also efficient. During the early days of the Covid-19 pandemic when much of China was affected, there were fears deliveries would stop, either because China needed more of these things than usual or because factories or shipping might shut down as employees were quarantined. If things had gotten much worse or the shutdown had lasted longer, they might well have.

In 2000, a strike by truck drivers blocked nearly all gasoline deliveries from Britain’s oil refineries for ten days. Public transport collapsed, grocery stores emptied, hospitals ran minimal services, hazardous waste piled up, bodies went unburied. The government had to step in. A subsequent study predicted economic collapse in Britain if all road haulage, not just fuel deliveries, was shut down for only a week. Today, we all depend even more on just-in-time deliveries: if the trucks stop because drivers are locked down, or sick, or dead, or caring for sick family, cities will rapidly have no food, vehicles won’t have fuel, food in depots will rot. In the future, if deliveries depend more on automated systems, trucking may not remain as vulnerable—but the principle remains that if certain hub industries are paralyzed by loss of people, the impact can be far-reaching.


pages: 389 words: 87,758

No Ordinary Disruption: The Four Global Forces Breaking All the Trends by Richard Dobbs, James Manyika

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, access to a mobile phone, additive manufacturing, Airbnb, Amazon Mechanical Turk, American Society of Civil Engineers: Report Card, autonomous vehicles, Bakken shale, barriers to entry, business cycle, business intelligence, Carmen Reinhart, central bank independence, cloud computing, corporate governance, creative destruction, crowdsourcing, demographic dividend, deskilling, disintermediation, disruptive innovation, distributed generation, Erik Brynjolfsson, financial innovation, first square of the chessboard, first square of the chessboard / second half of the chessboard, Gini coefficient, global supply chain, global village, hydraulic fracturing, illegal immigration, income inequality, index fund, industrial robot, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, inventory management, job automation, Just-in-time delivery, Kenneth Rogoff, Kickstarter, knowledge worker, labor-force participation, low skilled workers, Lyft, M-Pesa, mass immigration, megacity, mobile money, Mohammed Bouazizi, Network effects, new economy, New Urbanism, oil shale / tar sands, oil shock, old age dependency ratio, openstreetmap, peer-to-peer lending, pension reform, private sector deleveraging, purchasing power parity, quantitative easing, recommendation engine, Report Card for America’s Infrastructure, RFID, ride hailing / ride sharing, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, Snapchat, sovereign wealth fund, spinning jenny, stem cell, Steve Jobs, supply-chain management, TaskRabbit, The Great Moderation, trade route, transaction costs, Travis Kalanick, uber lyft, urban sprawl, Watson beat the top human players on Jeopardy!, working-age population, Zipcar

Based on our experience across sectors, a combination of project reprioritization, shortening of project life cycles, and tight project execution can deliver as much as a 10 to 25 percent reduction in spending and a 20 to 50 percent reduction in delays.47 A real estate company in the Middle East, for example, reduced cycle time by 30 percent for a $500 million tower project by taking advantage of lean management techniques—such as performance dialogues and war rooms—and prefabricating forms for beams and construction joints. These efforts allowed it to avoid $50 million in penalties for time overruns, while reducing the overall cost.48 When money becomes more expensive, not tying it up unnecessarily becomes more crucial. The just-in-time delivery processes pioneered by Asian manufacturers were, at root, efforts to avoid tying up capital unnecessarily in parts and supplies that would sit idle on factory floors. Today, Japanese and Korean automakers are increasingly adopting a “capital-light” approach to product design and processes. Already, product derivatives and capacity buildup in new markets account for 90 percent of capital expenditures by the typical carmaker.

.), 158, 159 (table) See also Talent Land management, 117 (table), 121 (table), 122 Latin America connectedness ranks in, 81 (table) immigrant talent in, 77 labor market gap in, 163, 164 new consuming class in, 102 Latin American countries Argentina, 77, 81 (table), 113 (table) Bolivia, 77 Chile, 116, 195 Colombia, 164, 176 Mexico, 113 (table), 123, 191 Peru, 28 See also Brazil LG Electronics, 104–105, 109, 122 Life expectancy, 58, 60, 61 LinkedIn, 49 Localization future government centralization or, 191–192 goods and services customization and, 102–105 manufacturing, 27, 105 London, England, 29, 31–32, 143 Lyft, 47, 48, 154 Ma, Jack, 165 Mangalyaan (spacecraft), 3 Manufacturing agility in, 82–83 automation of, 151–152, 153 (table), 154 circular economy approach to, 123–125 commodity demand increase in, 114–116, 117 (table) cycle time reduction in, 141 economic center of gravity and, 17 energy efficiency in, 123 globalized new competitors in, 84 just-in-time delivery processes, 141–142 labor market gap in, 155 local, 27, 105 overruns, 141 for reuse and recycle, 123–125 3-D printing and, 35 (fig.), 37–38, 39, 45, 50, 60, 84 See also Automotive manufacturing industry Marketing to aging population, 66–68 to new consuming class, 105–107 Massachusetts Institute of Technology (MIT), 28, 155 Materials science, 34–36 McAfee, Andrew, 6 McKinsey Global Institute (MGI), 11 Media.


pages: 133 words: 36,528

Peak Car: The Future of Travel by David Metz

autonomous vehicles, bike sharing scheme, Clayton Christensen, congestion charging, crowdsourcing, David Attenborough, decarbonisation, disruptive innovation, edge city, Edward Glaeser, Just-in-time delivery, low cost airline, Network effects, Richard Florida, Robert Gordon, Silicon Valley, Skype, urban sprawl, yield management, young professional

There are, in fact, reasons to suppose that the cost of unanticipated congestion is quite small for operators who understand the road network. This points to a better way of managing demand for road travel. Efficient road freight operators under contract with the supermarket chains for long distance transport between central depots and stores typically have to deliver within 30‑minute time slots or face a penalty—an example of what is known as ‘just in time delivery’. This they can achieve because they know the location and control the progress of each vehicle and understand where traffic congestion arises. I had the opportunity to ask a senior executive of a well‑known freight haulier to what extent unanticipated congestion affected performance. His memorable response was that it had less impact than unanticipated delays at customers’ premises. More generally, congestion in Britain is responsible for only about a quarter of delays in road freight transport, and the logistics operators are acquiring the skills to manage this better using advances in digital technologies.


pages: 464 words: 116,945

Seventeen Contradictions and the End of Capitalism by David Harvey

accounting loophole / creative accounting, bitcoin, Branko Milanovic, Bretton Woods, BRICs, British Empire, business climate, California gold rush, call centre, central bank independence, clean water, cloud computing, collapse of Lehman Brothers, colonial rule, creative destruction, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, demographic dividend, Deng Xiaoping, deskilling, drone strike, end world poverty, falling living standards, fiat currency, first square of the chessboard, first square of the chessboard / second half of the chessboard, Food sovereignty, Frank Gehry, future of work, global reserve currency, Guggenheim Bilbao, Gunnar Myrdal, income inequality, informal economy, invention of the steam engine, invisible hand, Isaac Newton, Jane Jacobs, Jarndyce and Jarndyce, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Just-in-time delivery, knowledge worker, low skilled workers, Mahatma Gandhi, market clearing, Martin Wolf, means of production, microcredit, new economy, New Urbanism, Occupy movement, peak oil, phenotype, plutocrats, Plutocrats, Ponzi scheme, quantitative easing, rent-seeking, reserve currency, road to serfdom, Robert Gordon, Ronald Reagan, short selling, Silicon Valley, special economic zone, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, transaction costs, Tyler Cowen: Great Stagnation, wages for housework, Wall-E, women in the workforce, working poor, working-age population

Capital’s immediate purpose is to increase productivity, efficiency and profit rates, and to create new and, if possible, ever more profitable product lines. When considering the trajectories of technological change, it is vital to remember that the software and the organisational forms are every bit as important as the hardware. Organisational forms, like the control structures of the contemporary corporation, the credit system, just-in-time delivery systems, along with the software incorporated into robotics, data management, artificial intelligence and electronic banking, are just as crucial to profitability as the hardware embodied in machines. To take a contemporary example, cloud computing is the organisational form, Word is the software and this Mac, upon which I write, the hardware. All three elements – hardware, software and organisational form – are combined in computer technology.

It was the profitability of the steam engine makers rather than that of the different industries using steam power (for example, transport, cotton factories and mining) that mattered, though plainly the profitability of the one could not be achieved without that of the other. The search for ever-newer and better forms of not only the steam engine but also energy and power application quickly followed. The search for generic technologies that could be applied almost anywhere – in recent years think of fields such as computers, just-in-time delivery systems and theories of organisation – became important. A vast business of invention and innovation catering to all and sundry sprang up, providing new technologies of consumption as well as of production, circulation, governance, military power, surveillance and administration. Technological innovation became big business, not ‘big’ necessarily in the sense of some vast consolidated corporation (though examples of that sort now abound in fields like agribusiness, energy and pharmaceuticals) but ‘big’ in the sense of multiple firms, many of them small-scale start-ups and venture enterprises, exploring innovation for innovation’s sake.


pages: 460 words: 131,579

Masters of Management: How the Business Gurus and Their Ideas Have Changed the World—for Better and for Worse by Adrian Wooldridge

affirmative action, barriers to entry, Black Swan, blood diamonds, borderless world, business climate, business cycle, business intelligence, business process, carbon footprint, Cass Sunstein, Clayton Christensen, cloud computing, collaborative consumption, collapse of Lehman Brothers, collateralized debt obligation, commoditize, corporate governance, corporate social responsibility, creative destruction, credit crunch, crowdsourcing, David Brooks, David Ricardo: comparative advantage, disintermediation, disruptive innovation, don't be evil, Donald Trump, Edward Glaeser, Exxon Valdez, financial deregulation, Frederick Winslow Taylor, future of work, George Gilder, global supply chain, industrial cluster, intangible asset, job satisfaction, job-hopping, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kickstarter, knowledge economy, knowledge worker, lake wobegon effect, Long Term Capital Management, low skilled workers, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, Naomi Klein, Netflix Prize, Network effects, new economy, Nick Leeson, Norman Macrae, patent troll, Ponzi scheme, popular capitalism, post-industrial society, profit motive, purchasing power parity, Ralph Nader, recommendation engine, Richard Florida, Richard Thaler, risk tolerance, Ronald Reagan, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Steven Levy, supply-chain management, technoutopianism, The Wealth of Nations by Adam Smith, Thomas Davenport, Tony Hsieh, too big to fail, wealth creators, women in the workforce, young professional, Zipcar

Iwasaki donated some of her royalties to the Japan Drucker Workshop and the Peter Drucker and Mastoshi Ito Graduate School of Management. But the novel did more than this: it promoted a salutary debate about the business habits of a country that, thanks in part to Drucker, had shaken up the business world in the 1960s and 1970s with a succession of management innovations, such as “lean production” and “just-in-time delivery,” but has been locked in a recession for two decades. Should Japanese companies set themselves clearer objectives rather than wallowing in consensus? And should they adopt clearer structures rather than sprawling into dozens of businesses? Five years after his death, Drucker still mattered. In 1996, Adrian Wooldridge and I published a book on the management gurus called The Witch Doctors.

It takes the assembly-line principle literally: four operating tables are laid side by side and two doctors operate on adjacent tables. When the first operation is done, the second patient is already in place. These three business innovations are remarkable. But something even more fundamental is going on: business innovation in the emerging world has arguably gotten to the point where all the individual advances add up to more than the sum of their parts. Just as Japan’s quality circles and just-in-time delivery were part of a new system called “lean production,” so the emerging world’s reverse innovation and frugal production are part of a new approach to management. This new management paradigm pushes two familiar ideas beyond their previous limits: that the customer is king, and that economies of scale can produce radical reductions in unit costs. Companies are starting with the needs of some of the world’s poorest people and redesigning not just products but entire production processes to meet those needs.


pages: 475 words: 155,554

The Default Line: The Inside Story of People, Banks and Entire Nations on the Edge by Faisal Islam

Asian financial crisis, asset-backed security, balance sheet recession, bank run, banking crisis, Basel III, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, British Empire, capital controls, carbon footprint, Celtic Tiger, central bank independence, centre right, collapse of Lehman Brothers, credit crunch, Credit Default Swap, crony capitalism, dark matter, deindustrialization, Deng Xiaoping, disintermediation, energy security, Eugene Fama: efficient market hypothesis, eurozone crisis, financial deregulation, financial innovation, financial repression, floating exchange rates, forensic accounting, forward guidance, full employment, G4S, ghettoisation, global rebalancing, global reserve currency, hiring and firing, inflation targeting, Irish property bubble, Just-in-time delivery, labour market flexibility, light touch regulation, London Whale, Long Term Capital Management, margin call, market clearing, megacity, Mikhail Gorbachev, mini-job, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, mutually assured destruction, Myron Scholes, negative equity, North Sea oil, Northern Rock, offshore financial centre, open economy, paradox of thrift, Pearl River Delta, pension reform, price mechanism, price stability, profit motive, quantitative easing, quantitative trading / quantitative finance, race to the bottom, regulatory arbitrage, reserve currency, reshoring, Right to Buy, rising living standards, Ronald Reagan, savings glut, shareholder value, sovereign wealth fund, The Chicago School, the payments system, too big to fail, trade route, transaction costs, two tier labour market, unorthodox policies, uranium enrichment, urban planning, value at risk, WikiLeaks, working-age population, zero-sum game

Had the previous day’s sit-down protest by the bank workers turned into a riot? The truth was even more extraordinary. At the Central Bank itself, tense meetings between international financiers, American management consultants, British Treasury advisers and Cypriot bankers suddenly broke off. Four very large green juggernauts laden with euros had arrived from the European Central Bank, just hours before Cyprus’s banks were due to reopen. An historic just-in-time delivery. That afternoon a Boeing 767 cargo plane in the livery of Maersk Star Air had been spotted amidst a crowd of smaller private jets parked at the end of the runway at Larnaca airport. Flight logs record that the Boeing 767, registration OY-SRH, had flown from Cologne to Munich in the early hours, and then, via Athens, to Larnaca. Its cargo? Five billion euros in notes. The cash had been transferred from the Bundesbank logistical reserve at the request of the ECB.

This is the first time since the Second World War that the United Kingdom has been able to absorb a very large depreciation of its currency without domestically generated inflation wage costs picking up. I think that’s an achievement for monetary policy and I think the MPC [Monetary Policy Committee of the Bank of England] can be rightly proud of that.’ I first saw this dynamic at first hand at the Honda factory in Swindon in 2009. Japanese just-in-time delivery stretched to their employment practices. A collapse in demand for cars was transmitted immediately around the world and led to them cutting down on working time as much as on steel. Workers accepted a 3 per cent pay cut for workers and 5 per cent for management in the place of compulsory redundancies, to cope with the slump in world trade after the Lehman collapse. It was the new ‘Honda Effect’.


pages: 353 words: 355

The Long Boom: A Vision for the Coming Age of Prosperity by Peter Schwartz, Peter Leyden, Joel Hyatt

American ideology, Asian financial crisis, Berlin Wall, centre right, computer age, crony capitalism, cross-subsidies, Deng Xiaoping, Dissolution of the Soviet Union, European colonialism, Fall of the Berlin Wall, financial innovation, hydrogen economy, industrial cluster, informal economy, intangible asset, Just-in-time delivery, knowledge economy, knowledge worker, life extension, market bubble, mass immigration, megacity, Mikhail Gorbachev, Nelson Mandela, new economy, oil shock, open borders, Productivity paradox, QR code, Ronald Reagan, shareholder value, Silicon Valley, Steve Jobs, the scientific method, upwardly mobile, Washington Consensus, Y2K

TliE qfobAl JNfoRMATiON JNfRASTRUCTURE led TO A "qUss pipEliNE," whERE The MOVEMENT of All PARTS ANd psoducTS ANd pEople could bE closely TRAckEd Th«ouqh EVERY sTAqe of pRoducriON, AbNq WlTh ThAT fltNdAMENTAl cliANqE JN COMMUNICATIONS, JN MOViNq INfORMA- TiON, CAME A biq IEAP foRWARd IN woviNq Thtwqs, A NEW qewERATiON of VERY IAST fREiqhTERS ANd lARqe CARqo pUwes bEEfed up Tk CARRyiNq CAPACITY white kEEpiwq TRANSPORT COSTS low, IN 2005, A NEW cUss of supERfREiqhTCR T!<AT could CARRY EVEN bulk CARQO, likE W^EAT, WENT INTO SERVJCE, CUTTINq lllE TIME foR TRANSPORT fROM T^E EAST COAST of AE UNlTEd STATES TO EUROPE ffiOM TEN dAyS TO T^REE. MANAqERS BECAME Much MORE efficiENT wi?h jusT'iN'TiME dEliveRiEs of EVERYThiNq fRow RAW MATERIA! TO polished pRoducis, Awd AvoidiNq Niqh INVENTORIES which WERE All COST ANd liwlE VAluE. IN AddmoN, ih£ ENTIRE wofild could bE usEd TO qer The besT pRices ON supplies,- NO BUSINESS OR CONSUMER WAS TRApped IN A loCAlilEd MARkET. IN ThE EARly iNdusTRiftl ECONOMY, All MAJOR PARTS supptas foR A DETROJT AU' TOMAkER hAd TO be locAl. IN ThE IATER iwdusTRiAl ERA, Thsy All NAd TO bE WITHIN ThE SAME NATION.


pages: 614 words: 176,458

Meat: A Benign Extravagance by Simon Fairlie

agricultural Revolution, Albert Einstein, back-to-the-land, Boris Johnson, call centre, carbon footprint, Community Supported Agriculture, deindustrialization, en.wikipedia.org, food miles, Food sovereignty, Haber-Bosch Process, Hugh Fearnley-Whittingstall, informal economy, Intergovernmental Panel on Climate Change (IPCC), Just-in-time delivery, land reform, Mahatma Gandhi, Martin Wolf, megacity, Northern Rock, Panamax, peak oil, refrigerator car, scientific mainstream, sexual politics, stem cell, The Wealth of Nations by Adam Smith, trade liberalization, University of East Anglia, upwardly mobile, women in the workforce, zero-sum game

Assuming for simplicity, that the latter two effects compensate each other, the total annual meat transport-induced CO2 emission would be in the order of 800–850,000 tonnes of CO2. 62 In other words, ‘for simplicity’, the FAO has omitted to take into account all surface transport and airfreight anywhere in the world – all the cattle trucks and milk tankers, the lorries loaded with hay and straw, the vets’ visits to farms and the relief milkers’ trips to work, the deliveries of feed and fertilizer, the Spanish artics and the Tesco vans, the just-in-time deliveries of McDonalds burgers and M & S chilled beef vindaloo – all of this is discounted in order to cancel out a modest overestimate made in its calculation about international shipping. Sea transport represents a minor part of food transport emissions. The UK imports around 40 per cent of its food, but international shipping represents just 13.5 per cent of transport emissions, whereas road transport constitutes 73 per cent and aviation 13.5 per cent.63 It is hard to pin down what other assumptions the FAO may have made to ‘simplify’ their calculations.

The FAO analysis accounts for CO2 from tractors, fertilizers, on-farm processing and a miniscule amount for transport – but it doesn’t register all the high impact baggage that tends to come with intensive farming, in order to accommodate its so called economies of scale: 4x4s, concrete yards, paved roads, electric lights, air conditioning, refrigeration, burglar alarms, slaughterhouse costs, animal waste disposal, health and safety measures, carcase incineration, livestock registration and identification, product tracking, computerized accounts, conferences, packaging, advertising, middlemen, retail chains, just-in-time delivery, supermarket journeys, processing waste disposal, domestic waste disposal, journeys to work etc. You don’t buy into the intensive farmers’ club with just a tractor and sack of fertilizer – intensive farming brings with it all the paraphernalia of an industrialized urbanized lifestyle, which the peasant in a local economy for the most part manages without. That is why nearly two thirds of global warming is caused by fossil fuels.


pages: 756 words: 167,393

The Tylenol Mafia by Scott Bartz

Donald Trump, en.wikipedia.org, intangible asset, inventory management, Just-in-time delivery, life extension, Ronald Reagan, Ted Kaczynski, the scientific method, too big to fail

Officials never disclosed the name of the distributor that delivered the poisoned Tylenol capsules to Central DuPage Hospital, but they did spend a great deal of time questioning employees at the largest distributor of Tylenol to hospitals in the Chicago area - the Louis Zahn Drug Company. 19 ________ The Louis Zahn Drug Company When Central DuPage Hospital converted its pharmacy to a unit-dose system in 1974, it also contracted with a local distributor to manage its inventory and provide frequent deliveries of drugs and other products to its pharmacy. Distributors make “just in time” deliveries to hospital pharmacies, usually several times per week. This system allows pharmacies to keep very low inventory levels and thus reduce costs. The distribution company that gained the pharmacy-service-provider contract for Central DuPage Hospital is the same distribution company that delivered the cyanide-laced Extra Strength Tylenol capsules to the hospital’s pharmacy. Those poisoned capsules had already been filled with cyanide before they were loaded onto the delivery truck at the distribution center and then delivered to the pharmacy at Central DuPage Hospital.

These employees provided the same type of services as the rack jobbers who worked for Sav-A-Stop, delivering Tylenol and other products to the local stores and placing them on the store’s shelves. Bottles of Extra Strength Tylenol capsules were rarely delivered to retail customers by the full case of 72 bottles. Rather, they were delivered in multiples of six Tylenol bottles or one Tylenol bottle, depending on how the picking system was set up. Retail stores and hospital pharmacies received just-in-time deliveries of drugs and other products. Most retail stores ordered just enough Tylenol bottles to cover sales until the next shipment arrived, typically, no more than a week later. Managers at Jewel stores told NBC-News that they were selling one or two bottles of Extra Strength Tylenol capsules per day. For those stores, a typical weekly order would have been around a dozen bottles of Extra Strength Tylenol capsules.


pages: 255 words: 68,829

How PowerPoint Makes You Stupid by Franck Frommer

Albert Einstein, business continuity plan, cuban missile crisis, dematerialisation, hypertext link, invention of writing, inventory management, invisible hand, Just-in-time delivery, knowledge worker, Marshall McLuhan, means of production, new economy, oil shock, Ronald Reagan, Silicon Valley, Steve Jobs, Steve Wozniak, union organizing

Cadres had to be given career prospects other than advancement through seniority. The hierarchical and bureaucratic model was criticized and replaced by a type of organization in which participants were more autonomous, multi-specialists, participating in decision making. The Japanese Toyota model played a significant role, bringing to antiquated Taylorism the new charms of constant improvement, “just in time” delivery, and “zero delay.” This was the time of the “lean, open, and stable company”6—“lean” because to be responsive, the company could no longer operate with multiple hierarchical ladders; “open” in the sense that organizations had to be streamlined and there should be no hesitation in relying on subcontractors; and “stable” because the organization had to be carefully planned. In more general terms, companies sought to restore the individual to the center of things.


pages: 243 words: 66,908

Thinking in Systems: A Primer by Meadows. Donella, Diana Wright

affirmative action, agricultural Revolution, Albert Einstein, Buckminster Fuller, business cycle, clean water, Dissolution of the Soviet Union, game design, Gunnar Myrdal, illegal immigration, invisible hand, Just-in-time delivery, Kickstarter, means of production, Mikhail Gorbachev, Nelson Mandela, peak oil, race to the bottom, Ralph Waldo Emerson, Ronald Reagan, Stanford prison experiment, the scientific method, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, Whole Earth Review

• Injections of genetically engineered bovine growth hormone increase the milk production of a cow without proportionately increasing the cow’s food intake. The hormone diverts some of the cow’s metabolic energy from other bodily functions to milk production. (Cattle breeding over centuries has done much the same thing but not to the same degree.) The cost of increased production is lowered resilience. The cow is less healthy, less long-lived, more dependent on human management. • Just-in-time deliveries of products to retailers or parts to manufacturers have reduced inventory instabilities and brought down costs in many industries. The just-in-time model also has made the production system more vulnerable, however, to perturbations in fuel supply, traffic flow, computer breakdown, labor availability, and other possible glitches. • Hundreds of years of intensive management of the forests of Europe gradually have replaced native ecosystems with single age, single-species plantations, often of nonnative trees.


pages: 244 words: 79,044

Money Mavericks: Confessions of a Hedge Fund Manager by Lars Kroijer

activist fund / activist shareholder / activist investor, Bernie Madoff, capital asset pricing model, corporate raider, diversification, diversified portfolio, family office, fixed income, forensic accounting, Gordon Gekko, hiring and firing, implied volatility, index fund, intangible asset, Jeff Bezos, Just-in-time delivery, Long Term Capital Management, merger arbitrage, NetJets, new economy, Ponzi scheme, post-work, risk-adjusted returns, risk/return, shareholder value, Silicon Valley, six sigma, statistical arbitrage, Vanguard fund, zero-coupon bond

Little Holte Capital was a significant shareholder in a company that was a borderline Swedish household name. It was amazing how different our worlds were. The CEO of Bure, Lennart Svantesson, was a real hands-on guy who relished and excelled at sorting out operational issues facing the portfolio companies. His struggles involved meeting delivery dates and managing working capital while facing down the unions. He even used the term ‘just-in-time delivery’ which was the first time I had heard the expression since business school. By contrast, he clearly did not know what to make of me. At 33, I was too young to have come up through the ranks of an operating business to suddenly appear on his list of leading shareholders. He knew that I ran my own investment firm and therefore he did not have to look over my shoulder to see who was really making the decisions, but he also gathered that I had not grown up with wealth.


pages: 258 words: 83,303

Why Your World Is About to Get a Whole Lot Smaller: Oil and the End of Globalization by Jeff Rubin

addicted to oil, air freight, banking crisis, big-box store, BRICs, business cycle, carbon footprint, collateralized debt obligation, collective bargaining, creative destruction, credit crunch, David Ricardo: comparative advantage, decarbonisation, energy security, food miles, hydrogen economy, illegal immigration, immigration reform, Intergovernmental Panel on Climate Change (IPCC), invisible hand, James Watt: steam engine, Just-in-time delivery, market clearing, megacity, North Sea oil, oil shale / tar sands, oil shock, peak oil, profit maximization, reserve currency, South Sea Bubble, the market place, The Wealth of Nations by Adam Smith, trade liberalization, zero-sum game

In the near future there is going to be less salmon on our tables—and probably fewer restaurants to eat in, too. Because the cheap-oil subsidy that makes Norwegian salmon affordable is about to disappear. And as it does, your world is about to get smaller—much, much smaller. To get that salmon from the ocean to your plate takes a ridiculous amount of energy. Think of the fuel for the fishing boats, container ships and just-in-time delivery trucks; the energy to freeze and process the fish, to sell it in a supermarket (retail stores use almost as much energy per square foot as factories do, just on heating, cooling and lighting). We invest a lot more energy to get that salmon than we get out of it when we eat it, which in itself makes the fish a bad energy deal. Economics calls it a “diminishing rate of return.” But it gets worse.


pages: 791 words: 85,159

Social Life of Information by John Seely Brown, Paul Duguid

business process, Claude Shannon: information theory, computer age, cross-subsidies, disintermediation, double entry bookkeeping, Frank Gehry, frictionless, frictionless market, future of work, George Gilder, George Santayana, global village, Howard Rheingold, informal economy, information retrieval, invisible hand, Isaac Newton, John Markoff, Just-in-time delivery, Kenneth Arrow, Kevin Kelly, knowledge economy, knowledge worker, lateral thinking, loose coupling, Marshall McLuhan, medical malpractice, moral hazard, Network effects, new economy, Productivity paradox, Robert Metcalfe, rolodex, Ronald Coase, shareholder value, Shoshana Zuboff, Silicon Valley, Steve Jobs, Superbowl ad, Ted Nelson, telepresence, the medium is the message, The Nature of the Firm, The Wealth of Nations by Adam Smith, Thomas Malthus, transaction costs, Turing test, Vannevar Bush, Y2K

Consequently, looking at reengineering in the light of knowledge, as we do here, may help reveal both the strengths (often hidden behind catcalls) and the weaknesses (equally hidden behind cheerleading) of reengineering. Page 94 Perfecting Process It is perhaps significant that many of the celebrated cases of business process reengineering come from a fairly narrow band of operations. Procurement, shipping and receiving, warehousing, fulfillment, and billing are favorites. These generally account for the most impressive results, with inventories transformed into just-in-time delivery, fulfillment and billing accomplished in days rather than weeks. In these areas of work, processes are relatively well defined. They usually have clearly measurable inputs and outputs. And, as we might expect from a process-oriented view, they emphasize a linear view of how organizations work. To complete a process, something passes from A on to B ending with Cfrom, for example, receiving to manufacturing to shipping.


pages: 472 words: 80,835

Life as a Passenger: How Driverless Cars Will Change the World by David Kerrigan

3D printing, Airbnb, airport security, Albert Einstein, autonomous vehicles, big-box store, butterfly effect, call centre, car-free, Cesare Marchetti: Marchetti’s constant, Chris Urmson, commoditize, computer vision, congestion charging, connected car, DARPA: Urban Challenge, deskilling, disruptive innovation, edge city, Elon Musk, en.wikipedia.org, future of work, invention of the wheel, Just-in-time delivery, loss aversion, Lyft, Marchetti’s constant, Mars Rover, megacity, Menlo Park, Metcalfe’s law, Minecraft, Nash equilibrium, New Urbanism, QWERTY keyboard, Ralph Nader, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Rodney Brooks, Sam Peltzman, self-driving car, sensor fusion, Silicon Valley, Simon Kuznets, smart cities, Snapchat, Stanford marshmallow experiment, Steve Jobs, technoutopianism, the built environment, Thorstein Veblen, traffic fines, transit-oriented development, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, Unsafe at Any Speed, urban planning, urban sprawl, Yogi Berra, young professional, zero-sum game, Zipcar

Retail As an area already hit hard by the rise of technology in the form of online shopping, what will happen to retailing in the world of driverless cars? What remaining strengths retail has are often linked to the car. What of weekly shopping? Will consumers who currently do their weekly grocery shop send a car to pick it up for them using some future Instacart-style service? Will shoppers seek to return to city centres if driverless cars make them more pedestrian friendly, at the expense of out of town malls? Perhaps the growth of just in time deliveries (via drones[246] or robots), anticipatory shipping[247] and re-order technologies such as Amazon Dash[248] will change the nature of shopping patterns regardless of driverless cars? Obvious changes to the relative importance of gas stations in a world of driverless cars (and likely a world of more electric vehicles) will be accompanied by changes in the sales for products that sell in significant volumes as impulse or attached purchases.


pages: 309 words: 85,584

Nine Crises: Fifty Years of Covering the British Economy From Devaluation to Brexit by William Keegan

banking crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, Bretton Woods, British Empire, capital controls, congestion charging, deindustrialization, Donald Trump, Etonian, eurozone crisis, Fall of the Berlin Wall, financial innovation, financial thriller, floating exchange rates, full employment, gig economy, inflation targeting, Just-in-time delivery, light touch regulation, liquidity trap, Martin Wolf, moral hazard, negative equity, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, oil shock, Parkinson's law, Paul Samuelson, pre–internet, price mechanism, quantitative easing, Ronald Reagan, school vouchers, short selling, South Sea Bubble, The Chicago School, transaction costs, tulip mania, Winter of Discontent, Yom Kippur War

One is geopolitical rather than economic: it seems unwise, to put it mildly, to try to unhook ourselves from the rest of Europe when the United States, under Donald Trump, has declared a trade war on the rest of the world and Europe is very concerned about a threat from President Putin’s Russia. The second concern is obviously economic: we have spent forty-five years being integrated into the wider European economy and in effect we have become an economic region of the EU. So much industrial production is geared to intricate supply lines and what is known as ‘just in time’ delivery systems. I suspect that a lot of the people who voted for Brexit do not realise that many of the things they take for granted, like the ability to buy fruit and vegetables delivered to their supermarkets overnight from France, Spain and other European countries, would be put at risk by the kind of customs restrictions that would be imposed by Brexit. One personal example: we needed at home a replacement part for a washing machine.


pages: 369 words: 94,588

The Enigma of Capital: And the Crises of Capitalism by David Harvey

accounting loophole / creative accounting, anti-communist, Asian financial crisis, bank run, banking crisis, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business climate, call centre, capital controls, creative destruction, credit crunch, Credit Default Swap, David Ricardo: comparative advantage, deindustrialization, Deng Xiaoping, deskilling, equal pay for equal work, European colonialism, failed state, financial innovation, Frank Gehry, full employment, global reserve currency, Google Earth, Guggenheim Bilbao, Gunnar Myrdal, illegal immigration, indoor plumbing, interest rate swap, invention of the steam engine, Jane Jacobs, joint-stock company, Joseph Schumpeter, Just-in-time delivery, land reform, liquidity trap, Long Term Capital Management, market bubble, means of production, megacity, microcredit, moral hazard, mortgage debt, Myron Scholes, new economy, New Urbanism, Northern Rock, oil shale / tar sands, peak oil, Pearl River Delta, place-making, Ponzi scheme, precariat, reserve currency, Ronald Reagan, sharing economy, Silicon Valley, special drawing rights, special economic zone, statistical arbitrage, structural adjustment programs, the built environment, the market place, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, Thorstein Veblen, too big to fail, trickle-down economics, urban renewal, urban sprawl, white flight, women in the workforce

This typically produces a perpetual stream of innovations in technologies and organisational forms simply because those capitalists with more efficient, effective and productive labour processes gain higher profits than the rest. The quest for greater efficiency actually encompasses all aspects of the circulation of capital, from the procuring of labour supplies and means of production (hence the supply-chain structure of just-in-time delivery from subcontractors to the modern corporation) through to efficient and low-cost marketing strategies (the Wal-Mart syndrome). Capitalist entities, from individual entrepreneurs to vast corporations, are therefore forced to pay close attention to organisational and technological forms and are always on the look-out for those innovations that yield them excess profit, at least for a time.


pages: 285 words: 86,853

What Algorithms Want: Imagination in the Age of Computing by Ed Finn

Airbnb, Albert Einstein, algorithmic trading, Amazon Mechanical Turk, Amazon Web Services, bitcoin, blockchain, Chuck Templeton: OpenTable:, Claude Shannon: information theory, commoditize, Credit Default Swap, crowdsourcing, cryptocurrency, disruptive innovation, Donald Knuth, Douglas Engelbart, Douglas Engelbart, Elon Musk, factory automation, fiat currency, Filter Bubble, Flash crash, game design, Google Glasses, Google X / Alphabet X, High speed trading, hiring and firing, invisible hand, Isaac Newton, iterative process, Jaron Lanier, Jeff Bezos, job automation, John Conway, John Markoff, Just-in-time delivery, Kickstarter, late fees, lifelogging, Loebner Prize, Lyft, Mother of all demos, Nate Silver, natural language processing, Netflix Prize, new economy, Nicholas Carr, Norbert Wiener, PageRank, peer-to-peer, Peter Thiel, Ray Kurzweil, recommendation engine, Republic of Letters, ride hailing / ride sharing, Satoshi Nakamoto, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, social graph, software studies, speech recognition, statistical model, Steve Jobs, Steven Levy, Stewart Brand, supply-chain management, TaskRabbit, technological singularity, technoutopianism, The Coming Technological Singularity, the scientific method, The Signal and the Noise by Nate Silver, The Structural Transformation of the Public Sphere, The Wealth of Nations by Adam Smith, transaction costs, traveling salesman, Turing machine, Turing test, Uber and Lyft, Uber for X, uber lyft, urban planning, Vannevar Bush, Vernor Vinge, wage slave

These companies operate in what design entrepreneur Scott Belsky calls the “interface layer,” using appealing design to clarify and rationalize messy aspects of cultural life into simple, dependable choices.32 The Interface Economy If Zynga and its cohort of game-makers have found ways to extract labor value from entertainment, the new wave of interface layer companies is reframing labor as a kind of entertainment, adopting the optimistic framing of the “sharing economy.” Their rhetoric relies on the notion of technological collaboration and just-in-time delivery: taking advantage of unused resources like empty seats in cars, unused rooms in houses, and so forth. But all of these interactions are grounded in the mediating computational layer that manages ad hoc logistics, matches buyers and sellers of services, and structures access to platforms through carefully constructed interfaces. Indeed, as we’ll see below, that last factor is so important that it makes much more sense to call this the “interface economy,” where traditional social and commercial interactions are increasingly conducted through apps and screens that depend on sophisticated, tightly designed forms of abstraction and simplification.


pages: 227 words: 32,306

Using Open Source Platforms for Business Intelligence: Avoid Pitfalls and Maximize Roi by Lyndsay Wise

barriers to entry, business intelligence, business process, call centre, cloud computing, commoditize, different worldview, en.wikipedia.org, Just-in-time delivery, knowledge worker, Richard Stallman, software as a service, statistical model, supply-chain management, the market place

Even though there isn’t a single solution that will meet the requirements of everyone within the organization, fine-tuning a solution to meet the needs of most will eliminate the need for rework later on.1 Applying this directly to technical considerations means identifying all of the factors that affect the business from a technical standpoint. For example, manufacturers require the ability to manage 1 http://mimiandeunice.com/ Evaluating the current IT infrastructure 145 parts how many exist in what place at any given time, defective parts, just-in-time delivery, supply chain and parts management, as well as placements in warehouses before use. For e-commerce and retailers, similar requirements exist. Not only do products need to be tracked, but sales trends and customer preferences need to be identified to make sure that consumers have positive experiences to induce them to become and/or remain customers. Aside from all of the implications, taking the time to look at the impact of technology on the business provides a great starting point to develop a short list of possible vendors.


pages: 368 words: 96,825

Bold: How to Go Big, Create Wealth and Impact the World by Peter H. Diamandis, Steven Kotler

3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, Charles Lindbergh, cloud computing, creative destruction, crowdsourcing, Daniel Kahneman / Amos Tversky, dematerialisation, deskilling, disruptive innovation, Elon Musk, en.wikipedia.org, Exxon Valdez, fear of failure, Firefox, Galaxy Zoo, Google Glasses, Google Hangouts, gravity well, ImageNet competition, industrial robot, Internet of things, Jeff Bezos, John Harrison: Longitude, John Markoff, Jono Bacon, Just-in-time delivery, Kickstarter, Kodak vs Instagram, Law of Accelerating Returns, Lean Startup, life extension, loss aversion, Louis Pasteur, low earth orbit, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, Mars Rover, meta analysis, meta-analysis, microbiome, minimum viable product, move fast and break things, Narrative Science, Netflix Prize, Network effects, Oculus Rift, optical character recognition, packet switching, PageRank, pattern recognition, performance metric, Peter H. Diamandis: Planetary Resources, Peter Thiel, pre–internet, Ray Kurzweil, recommendation engine, Richard Feynman, ride hailing / ride sharing, risk tolerance, rolodex, self-driving car, sentiment analysis, shareholder value, Silicon Valley, Silicon Valley startup, skunkworks, Skype, smart grid, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, Stewart Brand, superconnector, technoutopianism, telepresence, telepresence robot, Turing test, urban renewal, web application, X Prize, Y Combinator, zero-sum game

Turning our attention to automation—which is essentially the process of gathering all the data collected by the IoT, turning it into a series of next actions, and then, without human intervention, executing those actions. Already, we’ve seen the first wave of this in the smart assembly lines and supply chains (what’s technically called process optimization) that have enabled things like just-in-time delivery. With the smart grid for energy and the smart grid for water—what’s technically called resource consumption optimization—we’re seeing the second wave. Next up is the automation and control of far more complex autonomous systems—such as self-driving cars. There are even further opportunities in finding simpler ways to connect decision makers to sensor data in real time. The aforementioned plants that tweet their owners when they need watering were an early (2010) iteration of this sector.


pages: 326 words: 29,543

The Docks by Bill Sharpsteen

affirmative action, anti-communist, big-box store, collective bargaining, Google Earth, intermodal, inventory management, jitney, Just-in-time delivery, new economy, Panamax, place-making, Port of Oakland, post-Panamax, RAND corporation, refrigerator car, strikebreaker, women in the workforce

Geraldine Knatz, executive director of the Port of Los Angeles, tells me about cargo coming off a Maersk ship 155 156â•… /â•… The Shipper that was delayed at the port because of a crane fire that held up the discharge operation by a measly thirteen hours. But that was all it took to miss the train leaving for Dallas, where the containers filled with items for a department store chain’s Labor Day sale were headed for further distribution in the Midwest. Because the shipment had been scheduled for just-in-time delivery, there was no way to catch up. The products were too late for the store sales, and the corporate office had to yank the sale ads before they were published. And while it’s entirely possible that no one in Kansas City cares about what happens at the port, as Knatz puts it, “If I lived near that store and I was going to get my kids’ school clothes right before Labor Day and I went in there and they didn’t have the school uniforms, I would have really been pissed off.”


pages: 387 words: 110,820

Cheap: The High Cost of Discount Culture by Ellen Ruppel Shell

barriers to entry, Berlin Wall, big-box store, business cycle, cognitive dissonance, computer age, creative destruction, Daniel Kahneman / Amos Tversky, delayed gratification, deskilling, Donald Trump, Edward Glaeser, fear of failure, Ford paid five dollars a day, Frederick Winslow Taylor, George Akerlof, global supply chain, global village, Howard Zinn, income inequality, interchangeable parts, inventory management, invisible hand, James Watt: steam engine, Joseph Schumpeter, Just-in-time delivery, knowledge economy, loss aversion, market design, means of production, mental accounting, Monkeys Reject Unequal Pay, Pearl River Delta, Ponzi scheme, price anchoring, price discrimination, race to the bottom, Richard Thaler, Ronald Reagan, side project, Steve Jobs, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, traveling salesman, ultimatum game, Victor Gruen, washing machines reduced drudgery, working poor, yield management, zero-sum game

They reduced theft, spoilage, delays, and over 90 percent of the cost. Unloaded by crane from boat to truck to train to barge, no backs were wrenched, no whiskey or watch or gold gone missing. Today, a skeleton crew of a dozen hands can navigate a vessel freighted with up to six thousand containers, each the size and shape of a railroad car. Containers made shipping fast and predictable, enabling the just-in-time delivery system that retailers have come to depend on. In the estimations of some economists, containers made the transport of goods so cheap as to be essentially free. They certainly help make many things from China unbelievably cheap. Big Boxes, Category Killers, Bargain Basements, and Dollar Stores all owe their existence to fast boats from China and the containers they carry. The Port of Los Angeles is the busiest container port in the United States, a veritable Ellis Island for stuff.


pages: 335 words: 107,779

Some Remarks by Neal Stephenson

airport security, augmented reality, barriers to entry, British Empire, cable laying ship, call centre, cellular automata, edge city, Eratosthenes, Fellow of the Royal Society, Hacker Ethic, impulse control, Iridium satellite, Isaac Newton, Jaron Lanier, John von Neumann, Just-in-time delivery, Kevin Kelly, music of the spheres, Norbert Wiener, offshore financial centre, oil shock, packet switching, pirate software, Richard Feynman, Saturday Night Live, shareholder value, Silicon Valley, Skype, slashdot, social web, Socratic dialogue, South China Sea, special economic zone, Stephen Hawking, the scientific method, trade route, Turing machine, undersea cable, uranium enrichment, Vernor Vinge, X Prize

In addition to running their undercover operation in the sidewalk stand, they are targeting a number of operations in other countries, which probably provides a foretaste of what’s going to happen in mainland China a few years down the road. Most East Asian countries have sort of a stolen intellectual property shopping mall where people sit all day in front of cheap computers swapping disks, copying the software while you wait—the vaunted just-in-time delivery system. After a few of these got busted, many switched to a networked approach. One guy in Taiwan is selling a set of 7 CD-ROMs containing hundreds of pirated programs. He has no known name or address, just a pager. Taiwan, the most technologically advanced part of Greater China, makes a lot of PCs, all of which need system software, so there the name of the game is counterfeiting, not pirating.


pages: 405 words: 109,114

Unfinished Business by Tamim Bayoumi

algorithmic trading, Asian financial crisis, bank run, banking crisis, Basel III, battle of ideas, Ben Bernanke: helicopter money, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, British Empire, business cycle, buy and hold, capital controls, Celtic Tiger, central bank independence, collapse of Lehman Brothers, collateralized debt obligation, credit crunch, currency manipulation / currency intervention, currency peg, Doha Development Round, facts on the ground, Fall of the Berlin Wall, financial deregulation, floating exchange rates, full employment, hiring and firing, housing crisis, inflation targeting, Just-in-time delivery, Kenneth Rogoff, liberal capitalism, light touch regulation, London Interbank Offered Rate, Long Term Capital Management, market bubble, Martin Wolf, moral hazard, oil shale / tar sands, oil shock, price stability, prisoner's dilemma, profit maximization, quantitative easing, race to the bottom, random walk, reserve currency, Robert Shiller, Robert Shiller, Rubik’s Cube, savings glut, technology bubble, The Great Moderation, The Myth of the Rational Market, the payments system, The Wisdom of Crowds, too big to fail, trade liberalization, transaction costs, value at risk

Figure 40: US output growth stabilized after the mid-1980s. Source: US National Accounts. As the reality of lower volatility came to be accepted, the debate moved to explaining this moderation. Three main explanations were put forward: structural changes in the US economy, good luck, or better monetary policy. Investigators generally placed some weight on structural changes coming from the adoption of “just in time” delivery as a result of the information technology revolution. The timing worked, as such techniques were introduced in the early 1980s. In addition, the fall in output volatility was accompanied by a reduction in the variability of production relative to sales, consistent with the view that firms were able to use technology to better synchronize production with the demand for their goods. By contrast, the role of the switch toward production of less volatile services (think restaurant meals versus cars) and deeper financial markets that made it easier for firms to ride out bad times by borrowing, were generally discounted.


pages: 363 words: 105,039

Sandworm: A New Era of Cyberwar and the Hunt for the Kremlin's Most Dangerous Hackers by Andy Greenberg

air freight, Airbnb, Bernie Sanders, bitcoin, blockchain, call centre, clean water, data acquisition, Donald Trump, Edward Snowden, global supply chain, hive mind, Julian Assange, Just-in-time delivery, Kickstarter, Mikhail Gorbachev, open borders, pirate software, pre–internet, profit motive, ransomware, RFID, speech recognition, Steven Levy, Stuxnet, undersea cable, uranium enrichment, Valery Gerasimov, WikiLeaks, zero day

Jeffrey Bader, president of a Port Newark–based trucking group, the Association of Bi-State Motor Carriers, estimates that the unreimbursed cost for trucking companies and truckers alone was in the tens of millions. “It was a nightmare,” Bader said. “We lost a lot of money, and we’re angry.” The wider cost of Maersk’s disruption to the global supply chain as a whole—which depends on just-in-time delivery of products and manufacturing components—is far harder to measure. And, of course, Maersk was only one victim. Only when you start to multiply Maersk’s story—imagining the same paralysis, the same serial crises, the same grueling recovery—playing out across dozens of other NotPetya victims and countless other industries does the true scale of Russia’s cyberwar crime begin to come into focus.


pages: 397 words: 112,034

What's Next?: Unconventional Wisdom on the Future of the World Economy by David Hale, Lyric Hughes Hale

affirmative action, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Black Swan, Bretton Woods, business cycle, capital controls, Cass Sunstein, central bank independence, cognitive bias, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate social responsibility, creative destruction, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, Daniel Kahneman / Amos Tversky, debt deflation, declining real wages, deindustrialization, diversification, energy security, Erik Brynjolfsson, Fall of the Berlin Wall, financial innovation, floating exchange rates, full employment, Gini coefficient, global reserve currency, global village, high net worth, Home mortgage interest deduction, housing crisis, index fund, inflation targeting, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Just-in-time delivery, Kenneth Rogoff, Long Term Capital Management, Mahatma Gandhi, Martin Wolf, Mexican peso crisis / tequila crisis, Mikhail Gorbachev, money market fund, money: store of value / unit of account / medium of exchange, mortgage tax deduction, Network effects, new economy, Nicholas Carr, oil shale / tar sands, oil shock, open economy, passive investing, payday loans, peak oil, Ponzi scheme, post-oil, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, regulatory arbitrage, rent-seeking, reserve currency, Richard Thaler, risk/return, Robert Shiller, Robert Shiller, Ronald Reagan, sovereign wealth fund, special drawing rights, technology bubble, The Great Moderation, Thomas Kuhn: the structure of scientific revolutions, Tobin tax, too big to fail, total factor productivity, trade liberalization, Washington Consensus, Westphalian system, WikiLeaks, women in the workforce, yield curve

My own opinion is that what we are witnessing are the growing pains of the internationalization of markets. Lessons learned, we will create greater long-term stability. A gradual economic rebalancing will take place. Inexorable trends, such as outsourcing of US manufacturing to China, will reverse themselves over time. In fact, that has already begun to happen. Concerns over logistics costs, rising wages in China, and productivity issues such as just-in-time delivery have now given US companies an edge. US manufacturing has made a gradual recovery, which in turn will create more jobs. The unanswerable question is when. Many of our contributors have bravely tried to answer this question. They have ably presented their knowledge and experience and have offered their assumptions for debate with the reader. Our goal is not only to help you answer the question “What’s Next?”


pages: 415 words: 103,231

Gusher of Lies: The Dangerous Delusions of Energy Independence by Robert Bryce

addicted to oil, Berlin Wall, Charles Lindbergh, Colonization of Mars, decarbonisation, en.wikipedia.org, energy security, energy transition, financial independence, flex fuel, hydrogen economy, Intergovernmental Panel on Climate Change (IPCC), John Markoff, Just-in-time delivery, low earth orbit, Nelson Mandela, new economy, oil shale / tar sands, oil shock, peak oil, price stability, Project for a New American Century, rolodex, Ronald Reagan, Silicon Valley, Stewart Brand, Thomas L Friedman, Whole Earth Catalog, X Prize, Yom Kippur War

In mid2007, Michael Harter, the chairman of the Tulsa Welding School, the largest welding school in the U.S., told me that there are “3 to 10 job opportunities” for every welder who graduates from his school.73 The backdrop for all of these challenges is the fact that the industry has little spare production capacity. For watchers of global business, that fact should not be a surprise. The oil industry has simply adopted some of the strategies of other major industries that use just-in-time delivery systems. In every industry, spare capacity of any type (manufacturing, power generation, consumer goods) is expensive. In order to stay competitive, companies are providing only as much production capacity as is needed by their customers at any given time. They meet the demands of their customers and they do it just in time. That’s what the global oil business has done. Maintaining extra oil wells or platforms that are not producing to meet immediate oil demand is just too expensive.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

"Robert Solow", Airbnb, Albert Einstein, American ideology, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, laissez-faire capitalism, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, uber lyft, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

Deregulation, however, led to a rapidly expanding market – and made it far more open to innovation and general changes in the transportation market. This was a boon for the economy. Logistics is a general purpose industry and its own improvements have direct consequences for innovation and competition in other sectors. The logistics revolution in the 1980s was critical for the growth of lean production, an important process innovation that required just-in-time delivery of many source products and components. It provided companies with many new opportunities for where to start or grow businesses, and ways to reach consumers. Market deregulation helped to accelerate the diffusion of new technologies, making it easier for a company to take an innovation to market and for a user to adopt it.35 Moreover, changes in product market regulation reduced the capacity of companies to use market power such as first-mover advantage to limit innovation competition or to block markets to new entrants.36 Even in markets that have become more concentrated in recent phases of globalization, the spirit of competition brought by deregulation has been maintained and continues to limit the role of first-mover advantage.


pages: 589 words: 147,053

The Age of Em: Work, Love and Life When Robots Rule the Earth by Robin Hanson

8-hour work day, artificial general intelligence, augmented reality, Berlin Wall, bitcoin, blockchain, brain emulation, business cycle, business process, Clayton Christensen, cloud computing, correlation does not imply causation, creative destruction, demographic transition, Erik Brynjolfsson, Ethereum, ethereum blockchain, experimental subject, fault tolerance, financial intermediation, Flynn Effect, hindsight bias, information asymmetry, job automation, job satisfaction, John Markoff, Just-in-time delivery, lone genius, Machinery of Freedom by David Friedman, market design, meta analysis, meta-analysis, Nash equilibrium, new economy, prediction markets, rent control, rent-seeking, reversible computing, risk tolerance, Silicon Valley, smart contracts, statistical model, stem cell, Thomas Malthus, trade route, Turing test, Vernor Vinge

Because of learning and increased competitive pressures, we should expect em firms to use more of these good management practices, relative to firms of today. These practices include performance-based rewards and job-placement, demanding but attainable goals, managers evaluated on attracting and retaining talent, regular equipment maintenance, thorough analysis of failures, clear job descriptions, just-in-time delivery, tracking production by order, pricing orders based on production costs, and frequent and detailed tracking of inputs, outputs, and performance. Many other business practices today are suspected of being inefficient, even if the case against them isn’t quite as strong. We should also (more weakly) expect these practices to decline in em firms, because of continued firm learning and increased competitive pressures.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

*2 As the Yale political scientist Bruce Russett has demonstrated, conflict is highest in regions such as the Middle East and Central Asia where there is low intra-regional trade and despotic rule. *3 The unoriginal name BCIM (Bangladesh, China, India, Myanmar) is an acronym arranged to avoid sounding like the ICBM missile. *4 Toyota’s twin innovations of simplifying the number of components and accelerating toward just-in-time delivery ushered in a new era of lean management in global supply chains. But since the Taiwan earthquake in 1999 and the Japanese tsunami of 2011, companies learned not to over-concentrate the production of critical components in a single geography that, if suddenly lost, would send shock waves through the system. Japanese and Taiwanese companies now ensure that they distribute their industrial capacity to include backup areas in the event of natural disasters


pages: 537 words: 149,628

Ghost Fleet: A Novel of the Next World War by P. W. Singer, August Cole

3D printing, Admiral Zheng, augmented reality, British Empire, digital map, energy security, Firefox, glass ceiling, global reserve currency, Google Earth, Google Glasses, IFF: identification friend or foe, Just-in-time delivery, low earth orbit, Maui Hawaii, MITM: man-in-the-middle, new economy, old-boy network, RAND corporation, reserve currency, RFID, Silicon Valley, Silicon Valley startup, South China Sea, sovereign wealth fund, stealth mode startup, trade route, Wall-E, We are Anonymous. We are Legion, WikiLeaks, zero day, zero-sum game

Major Carolyne “Conan” Doyle of the U.S. Marine Corps put the garage-door opener back in the plastic sandwich bag and shoved it into the cargo pocket on her pants. Nothing could go to waste in this kind of war. It was all so different from any of the combat she had seen in Yemen from the pilot’s seat of an MV-22K Osprey gunship. Here everything itched, everything rusted, and everything had to be scavenged. There was no just-in-time delivery of whatever ammunition or spare part you needed. And instead of government-issue combat footwear, they fought in sandals and running shoes, the group being made up of a few escapees from the captured bases and those who’d been lucky enough to be on leave the day of the attack. Between the dirty civilian clothes and the tactical playbook they were cribbing from, the insurgents quickly realized they were becoming the very bastards they’d spent most their professional military careers fighting.


pages: 554 words: 149,489

The Content Trap: A Strategist's Guide to Digital Change by Bharat Anand

Airbnb, Benjamin Mako Hill, Bernie Sanders, Clayton Christensen, cloud computing, commoditize, correlation does not imply causation, creative destruction, crowdsourcing, death of newspapers, disruptive innovation, Donald Trump, Google Glasses, Google X / Alphabet X, information asymmetry, Internet of things, inventory management, Jean Tirole, Jeff Bezos, John Markoff, Just-in-time delivery, Khan Academy, Kickstarter, late fees, Mark Zuckerberg, market design, Minecraft, multi-sided market, Network effects, post-work, price discrimination, publish or perish, QR code, recommendation engine, ride hailing / ride sharing, selection bias, self-driving car, shareholder value, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, social graph, social web, special economic zone, Stephen Hawking, Steve Jobs, Steven Levy, Thomas L Friedman, transaction costs, two-sided market, ubercab, WikiLeaks, winner-take-all economy, zero-sum game

They have two desks, two editors, and two approaches. The core insight was not just to reduce the number of journalists but to spread their output over time. It was reminiscent of Walmart’s strategy to spread warehouse costs across store clusters. Planned journalism resulted not only in fewer journalists but in greater productivity. Journalists could write more and better. Munck spoke of the contrast: “Just-in-time delivery resulted in more mistakes, worse designs, less flexibility, loss of editorial control, higher costs, and staff working late. And the news was still old.” In contrast, by planning ahead, “you have more time, you do better research, you do more investigative journalism, you can get all the graphics and rich multimedia that you can’t get when a story comes up five minutes before deadline.” The results were impressive.


pages: 611 words: 186,716

The Diamond Age by Neal Stephenson

British Empire, clean water, dark matter, defense in depth, digital map, edge city, Just-in-time delivery, low earth orbit, Mason jar, pattern recognition, sensible shoes, Silicon Valley, Socratic dialogue, South China Sea, the scientific method, Turing machine, wage slave

Bud surprised himself with how long he went before he had to use the skull gun in anger. Just knowing it was in there gave him such an attitude that no one in his right mind would Rick with him, especially when they saw his Sights and the black leather. He got his way just by giving people the evil eye. It was time to move up the ladder. He sought work as a lookout. It wasn't easy. The alternative pharmaceuticals industry ran on a start, just-in-time delivery system, keeping inventories low so that there was never much evidence for the cops to seize. The stuff was grown in illicit matter compilers, squirreled away in vacant low-rent housing blocks, and carried by the runners to the actual street dealers. Meanwhile, a cloud of lookouts and decoys circulated probabilistically through the neighborhood, never stopping long enough to be picked up for loitering, monitoring the approach of cops (or cops' surveillance pods) through huds in their sunglasses.


pages: 850 words: 254,117

Basic Economics by Thomas Sowell

affirmative action, air freight, airline deregulation, American Legislative Exchange Council, bank run, barriers to entry, big-box store, British Empire, business cycle, clean water, collective bargaining, colonial rule, corporate governance, correlation does not imply causation, cross-subsidies, David Brooks, David Ricardo: comparative advantage, declining real wages, Dissolution of the Soviet Union, diversified portfolio, European colonialism, fixed income, Fractional reserve banking, full employment, global village, Gunnar Myrdal, Hernando de Soto, hiring and firing, housing crisis, income inequality, income per capita, index fund, informal economy, inventory management, invisible hand, John Maynard Keynes: technological unemployment, joint-stock company, Just-in-time delivery, Kenneth Arrow, knowledge economy, labor-force participation, land reform, late fees, low cost airline, low cost carrier, low skilled workers, means of production, Mikhail Gorbachev, minimum wage unemployment, moral hazard, offshore financial centre, oil shale / tar sands, payday loans, price discrimination, price stability, profit motive, quantitative easing, Ralph Nader, rent control, road to serfdom, Ronald Reagan, Silicon Valley, surplus humans, The Bell Curve by Richard Herrnstein and Charles Murray, The Chicago School, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, transcontinental railway, Vanguard fund, War on Poverty

A company manufacturing television sets in China might not be as efficient in transporting those sets as a specialized transport enterprise would be, but at least they were less likely to damage their own TV sets by handling them roughly in transit. One of the other side effects of unreliable deliveries has been that Chinese firms have had to keep more goods in inventory, foregoing the advantages of “just in time” delivery practices in Japan, which reduce the Japanese firms’ costs of maintaining inventories. Dell Computers in the United States likewise operates with very small inventories, relative to their sales, but this is possible only because there are shipping firms like Federal Express or UPS that Dell can rely on to get components to them and computers to their customers quickly and safely. The net result of habits and patterns of behavior left over from the days of a government-run economy is that China spends about twice as high a share of its national income on transportation as the United States does, even though the U.S. has a larger territory, including two states separated by more than a thousand miles from the other 48 states.


Wealth and Poverty of Nations by David S. Landes

"Robert Solow", Admiral Zheng, affirmative action, agricultural Revolution, Atahualpa, Ayatollah Khomeini, Bartolomé de las Casas, British Empire, business cycle, Cape to Cairo, clean water, colonial rule, Columbian Exchange, computer age, David Ricardo: comparative advantage, deindustrialization, deskilling, European colonialism, Fellow of the Royal Society, financial intermediation, Francisco Pizarro, germ theory of disease, glass ceiling, illegal immigration, income inequality, Index librorum prohibitorum, interchangeable parts, invention of agriculture, invention of movable type, invisible hand, Isaac Newton, James Watt: steam engine, John Harrison: Longitude, joint-stock company, Just-in-time delivery, Kenneth Arrow, land tenure, lateral thinking, mass immigration, Mexican peso crisis / tequila crisis, MITM: man-in-the-middle, Monroe Doctrine, Murano, Venice glass, new economy, New Urbanism, North Sea oil, out of africa, passive investing, Paul Erdős, Paul Samuelson, Philip Mirowski, rent-seeking, Right to Buy, Scramble for Africa, Simon Kuznets, South China Sea, spice trade, spinning jenny, The Wealth of Nations by Adam Smith, trade route, transaction costs, transatlantic slave trade, Vilfredo Pareto, zero-sum game

T h e s t o c k a p ­ preciated e n o r m o u s l y w h e n Chrysler g o t back o n track, at which p o i n t Chrysler tried t o a r g u e t h a t t h e g o v e r n m e n t s h o u l d n o t g e t t h e c a p i t a l g a i n . O n e c a n well i m a g i n e w h a t C h r y s l e r w o u l d h a v e s a i d h a d t h i n g s g o n e t h e o t h e r way. W h e r e fair play? 490 T H E W E A L T H AND POVERTY OF N A T I O N S japonaise and holding their wage bill down. To keep inventories lean, they are demanding just-in-time deliveries, some of them at twentyminute intervals. Some affiliated partsmakers are now working for outside car makers as well as for the mother assembly plant, thereby maximizing the rate o f utilization. C o m e a strike against the parent company, should the workers in the plant continue to produce for competitors? That's a hard one. Old-timers say no; others point to painful reality. If labor gets too difficult, they warn, the auto makers will turn to more cooperative suppliers, say in Mexico.