While our network of 110 factories and 95 distribution centers have historically served 3M well, it is incredibly complex and interconnected, with most SKUs we produce touching multiple factories before reaching the customer. For example, a command strip touches five factories and two distribution points before it hits the store shelf. This extends cycle times, increases goods in transit, and drives up logistics and freight costs. In lean manufacturing and logistics, we're developing a consistent metric around operating equipment efficiency or OEE, to increase equipment utilization and rein in capital spending and mapping modes and flows to lower freight and distribution costs.
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Saw the latest TEBG Q3 townhall . Someone ask the new president for more inventory as there are customers waiting. However it seems inventory control is more important for now.
I felt the new org structure is even worse than A3M. It promotes more silo thinking.
BB talks a good game just like Mike Roman did about growing organic sales and introducing new products. The playbook he is using is the same. 3M blew over a billion dollars buying there own stock between March 31'st and July. He let Gibbons put the Kearny guy in charge of logistics more wasted consultant spending. We have a four to one ratio in management to workers in R&D and strategic planning. That is a lot of wasted spending on what could have been used to replace ancient equipment and automation for new production lines. The reason they are pounding on inventory reduction is the cash situation su-ks and economy is slowing. Good leaders would have seen this change coming Q4 of last year. We changed the top guy but are still running the same sh!tty playbook Roman was running. A lot of the same milking a paycheck leaders are still here. Long past time they restructure upper management and thin out the heads and overlapping VP's. Otherwise it's the same old song and dance, which right now it is. Don't just slash get rid of some actual fluff this time.
Ah yes, “Henry Jackson’s” warehouse. All above board but funny none the less.
In addition to the plant sites & DC's, I wonder if Billy B will figure out that almost every 3M site has a local outsourced warehouse overcharging & su-king 3M dry? Seems like they're run by relatives of employees in most cases.
I work for a large plant and recently we are seeing the large push to cut inventory. It's ruthless. BB is dead serious about hitting targets. Senior leaders who are unable to hit targets will be asked to leave. You can see them scrambling now. Be afraid
Bill Brown, though loathed by employees at his former company, clearly has a vision and "playbook" that will work a lot better for what is left of 3M.
- He clearly doesn't trust long-time 3M bosses. The message is clear that they needed to find a job or be ruthlessly fired. Mikey isn't the only reason for this mess. The only really good senior leader left a year or two ago to Kimberly Clark.
- Monish was a sacrificial lamb to please the masses since he was vilified for his "winning" ways. Plus, he was a threat to want to take over as CEO if Brown got undermined.
- The big winner is Gibbons. He has clearly become the right hand man to Brown. Hence, the Kearney hire for Logistics. Brown trusts that Gibbons will dismantle the rest of this convoluted organization since he has no need for loyalty.
- 3M will streamline a lot of supply chains in anticipation of a 4 or 5 way breakup. 3Ms competitive edge was always its technology, people, and trade secrets. The complex supply chain created fiefdoms, both regional and business.
The future of 3M is so obvious, even a knucklehead could figure it out. GLTA who are left.
During my time at 3M I did product development in different divisions and getting the product into manufacturing was almost always a difficult step if the new product was not a simple modification of an existing product. Can't tell you how many presentations we did through the years to show the market value of the product and the expected return the sales would pull in. Almost always the management would never "risk" the capital to build or modify equipment. The management was repeatedly afraid to spend a dollar on new manufacturing equipment so we had to beg other divisions to get time on their equipment. This meant we were forced to utilize several steps at different locations to finish the product. Scale up time was ridiculously long. Often the product design was compromised so that it would be force-fit onto a manufacturing line. The work in process inventory was huge$$$. 3M management could never differentiate the value of time vs money.
Here’s ex 3mer, who spent years on architecting the leaner supply chain for 3 divisions ;-). Look at any (and I say ANY) production process 3m has and you’ll find ocean of opportunities resulting from the myth that if you centralize your making in one place and then ship to another continent to convert it will be cheaper… it is only giving you a delusional saving of not investing in RSS (regional self sufficiency), or keeping jobs in the location that should be closed 50 years ago… You lose all the way in cash generation by extending these supply chains to uncontrollable monsters. Someone mentioned command - in 2017 it had 20 touchpoints, and components travelled 2,5 times around the globe before hitting the customer. So clear improvement.
“ Just extrude, coat and convert. Anything else.”
Report to Kearny in the morning. 😂
Why would a command strip touch 5 factories? Why could it be done in the one US factory ? Just extrude, coat and convert. Anything else.
Totally agree that so many experienced people who could have helped streamline the supply chain got axed, mainly by Sir Pete.
3M spent too many years thinking complexity was a strategic advantage. Technology and trade secrets are strategic advantages but not complexity.
And bringing in Kearney to help fix it won't work.
Focused factory just takes time and money.
Chances are that many of the folks who could answer questions about focused factory initiatives were fired at random to save money. The new people will have to start from scratch.
BB says restructuring is 75% complete
BB says we don't need 110 factories.
What plants will be targeted?
With his comments, I am not surprised that there are plants will be closing.
New version of focused factory programs. Always a good thing.
I think he proved what a totally empty suit MR really was. Even one of the analysts virtually gushed with awe at how deep BB was in the workings of the company after only three months. He’d have expected that level of detail after a year in the job, not three months. MR should have his excessive pay and $26mm pension clawed back. He was an unmitigated disaster.