Supply Chain by the Numbers: August 21, 2008

Supply Chain by the Numbers

-August 28, 2008

The Numbers Worth Knowing this Week in Supply Chain and Logistics

This Week: 3-Day Weekend May be New Standard at Chrysler; Taking Spice (and Manufacturing Cost) Out of the Helper; Tata Threatens to Nix Indian Nano Factory; "Country of Origin" Food Labeling to Add Cost Across the Board



1938
The year the Fair Labor Standards Act was passed, standardizing the 8-hour work day and the 40-hour work week. Until that time, work hours, especially in the factory, were quite arbitrary, and generally much longer, but the 5 x 8 paradigm has stuck for 70 years. Now, Chrysler is considering moving to a four, 10-hour per day work week. (See Will Rising Energy Costs Drive Manufacturers to Rethink Plant Scheduling?)

10%

The reduction in manufacturing costs that General Mills has achieved in its Hamburger Helper line by reducing the number of spice and ingredient pouches it uses and the number of different pasta shapes, in the face of soaring food commodity prices.


$345 million
The amount of investment in a new auto plant that Tata Motors is threatening to walk away from, as the factory built to make the new Nano mini-car faces continued protests by farmers (occasionally violent) and some local politicians in the Indian state of West Bengal.




$2.53 billion
The estimated cost to producers, distributors, packers and retailers of new “country of origin” food labeling requirements, according to the US Agriculture Department. The new requirements take effect next month, and are expected to add some additional upward cost pressure on already rapidly rising food prices.