When Technology Fails

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OCTOBER 1, 2013

New Fairbanks Airport barricadeWe are certainly a technology driven society, with our ATMs and EFTs, on-line newspapers and e-books, robotic surgery and robotic butchering, and optical scanners. So what happens when something as simple as a phone app for navigation fails?

If you are headed for the Fairbanks, Alaska, Airport, just don’t ask your iPhone for help. The Detroit News (Sept. 27, 2013) reports that Apple has disabled driving directions to the Fairbanks International Airport after a glitch in its maps app guided drivers to the edge of a runway instead of a terminal.  Two times, drivers continued on and cut across an active runway to reach the terminal. Now, when someone puts in the airport as their final destination, a message pops up and says, “Directions not available, direction cannot be found between these locations.”

Previous directions on newer iPhones and iPads guided drivers to the edge of the tarmac instead of the correct route to the terminal. In incidents Sept. 6 and Sept. 20, drivers went through a gate, past warning lights and signs, and then across an active runway, to reach the terminal. The first mishap involved an out-of-state visitor trying to return a rental car before a flight, and the second was an Alaska resident trying to get to the airport.

The airport has since barricaded that entrance to the taxiway. A sign posted there gives a phone number for people to call to get the correct directions to the airport. After the first incident, airport authorities immediately contacted Apple requesting a fix.

This post provided courtesy of Jay and Barry’s OM Blog at www.heizerrenderom.wordpress.com. Professors Jay Heizer and Barry Render are authors of Operations Management , the world’s top selling textbook in its field, published by Pearson.

Robots vs. Anesthesiologists

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SEPTEMBER 27, 2013

J&J's Sedasys system

Anesthesiologists, who are among the highest-paid physicians, have long fought people in health care who target their specialty to curb costs.Now the doctors are confronting a different kind of foe, writesThe Wall Street Journal (Sept. 26, 2013): machines.

A new system called Sedasys, made by Johnson & Johnson, automates the sedation of many patients undergoing colon-cancer screenings called colonoscopies. That could take anesthesiologists out of the room, eliminating a big source of income for the doctors. More than $1 billion is spent each year sedating patients undergoing otherwise painful colonoscopies.  Sedasys “is a great way to improve care and reduce costs,” says J&J’s CEO.

Anesthesiologist’s involvement typically adds $600 to $2,000 to the colon-cancer screening procedure’s cost, By contrast, Sedasys would cost about $150 a procedure.

As J&J markets Sedasys, many anesthesiologists are sounding the alarm. They say the machine could endanger some patients because it uses a powerful drug known as propofol that could be used improperly. They also worry that if the anesthesiologist isn’t in the room, he might not be able to get to an emergency fast enough to prevent harm.

But during testing, none of the 1,700 patients sedated by Sedasys required rescuing. This past May, the FDA approved Sedasys for use on healthy patients 18 years of age and older who require mild or moderate levels of sedation during the colon-cancer screenings.

This post provided courtesy of Jay and Barry’s OM Blog at www.heizerrenderom.wordpress.com. Professors Jay Heizer and Barry Render are authors of Operations Management , the world’s top selling textbook in its field, published by Pearson.

Textile Plants Humming Once Again in the Carolinas

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SEPTEMBER 23, 2013

The old textile mills in the Carolinas are mostly gone now. Gaffney Manufacturing, National Textiles, Cherokee — clangorous, dusty, productive engines of the Carolinas fabric trade — fell one by one to the forces of globalization. Just as the Carolinas benefited when manufacturing migrated first from England to New England and then to here, where labor was even cheaper, they suffered in the 1990s when the textile industry mostly left the US. It headed to China, India, Mexico — wherever people would spool, spin and sew for a few dollars or less a day.

But remarkably, Parkdale Mills, the country’s largest buyer of raw cotton, has reopened and is thriving–another indication of the resurgence of US manufacturing, reports The New York Times (Sept. 20, 2013) in its cover story. For example, just last year, clothing maker American Giant was buying fabric from a factory in India. Now, it is cheaper to shop in the US, using Parkdale yarn.

American manufacturing has several advantages over outsourcing. Transportation costs are a fraction of what they are overseas. Turnaround time is quicker. Most striking, labor costs aren’t that much higher than overseas because the factories that survived the outsourcing wave have turned to automation and are employing far fewer workers. Further, monitoring worker safety in places like Bangladesh, has become a huge challenge.

In 2012, textile exports were $22.7 billion, up 37% from just 3 years earlier. That the industry is thriving again is indicative of a broader reassessment by companies about manufacturing in the US. A recent M.I.T. survey found that 1/3 of American companies with manufacturing overseas said they were considering backsourcing some production, while 15% said they had already decided to do so. This means jobs–but on nowhere near the scale there was before, because machines have replaced humans at almost every point in the production process. Take Parkdale: The mill produces 2.5 million pounds of yarn a week with about 140 workers. In 1980, that production level would have required more than 2,000 people.

This post provided courtesy of Jay and Barry’s OM Blog at www.heizerrenderom.wordpress.com. Professors Jay Heizer and Barry Render are authors of Operations Management , the world’s top selling textbook in its field, published by Pearson.