In 1945 the Raytheon Company faced a tremendous demand for magnetron tubes to power the new radar system used to detect enemy aircraft. One day when a Raytheon engineer named Percy L. Spencer stepped too close to a magnetron tube, he noticed that the chocolate bar in his pocket had melted.
Other engineers had noticed the same thing, but didn’t give it much thought. Spencer, on … [ Read more ]
The EOQ formula dates back to the Industrial Revolution and a 1913 article by Ford Whitman Harris, a self-trained engineer at Westinghouse Electric Company, in Factory: The Magazine of Management, a relic of another era. The article showed how to balance the fixed cost of ordering or producing a batch of goods with the cost of carrying the inventory between order periods. Graphically displayed with … [ Read more ]
In 1959, Play of the Week, an icon of civilization on television, was at risk of being canceled. Broadcast on Channel 13, New Yorkâ€™s public television station, the show offered high-quality theater week after week â€” including works by such writers as Eugene Oâ€™Neill, John Steinbeck, and Jean-Paul Sartre, with top talent. But the ratings were low, and sponsors were dropping out.
Ogilvy was looking for … [ Read more ]
In an article from FredHarriman.com, ex-Toyota Group manager Chihiro Nakao relates his experience with Taiichi Ohno, who originated Toyota’s Lean Production in collaboration with Shigeo Shingo. Here’s the punchline:
As Mr. Taiichi Ohno drove deeper and deeper in the effort to achieve Just in Time ideals among the companies of the Toyota Group, [â€¦] the struggle was to keep people from [ordering] too much too
… [ Read more ]