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Playing Russian Roulette with a Chicken...

5/26/2015

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Modern revolvers generally have either 5 or 6 chambers to hold the bullets. So, if you decide to play Russian roulette you have either a 1 in 5 or 1 in 6 chance of losing. However, when you buy chicken at the store, even organic, you have a 25 % chance of having a product that is contaminated with a harmful bacteria.  So, now the odds are better of getting sickened at 1 in 4. But wait, it gets worse! Consumer Reports sampled 300 packages of chicken breasts from across the country and found that 97 % were contaminated with harmful bacteria. (See the report here). So, just load the gun with bullets and pull the trigger!
The most recent warnings about contaminated chicken come from the popular PBS series Frontline which aired a special report called “The Trouble with Chicken”. The emphasis in this documentary focused on the Foster Farms contamination of salmonella in 2013 and 2014 and particularly the strain called Heidelberg.  It is more drug resistant and causes more sickness and death than the more common strain. It was responsible for the largest outbreak of sickness and death in the US.
Currently, the Food Safety Inspection Service (FSIS) which operates under the auspices of the United States Department of Agriculture (USDA) can only require a recall if the contaminant  or pathogen has already been banned by the USDA. A good example is E. coli 0157. The ban allowed the massive beef recall of hamburger meat during the last year. So, why is salmonella not banned and allowed to linger in stores across the nation?
Let us consider what happens at a chicken producer’s factory. The FSIS inspectors are looking at the chickens for gross signs of damage or disease and not checking for pathogens. That is the responsibility of the company and apparently they are either not catching the pathogens or they are not reporting the results to the USDA. But the Center for Disease Control (CDC) is tracking the outbreaks as hospitals report salmonella events. So, after the outbreak has occurred and is getting worse, the CDC tells the USDA, and they tell FSIS who has no authority to demand a stop to production and start a recall. All the FSIS can do is request a recall by the company. And around we go as more people get sick!
There are two bills in both the US Senate and the House of Representatives. In the Senate it is the Meat and Poultry Recall Notification Act. In the House it is the Pathogen Reduction and Testing Reform Act. Both bills are sponsored by Democrats, and in the current gridlock, passage may be in jeopardy. And, as an added bonus we have the lobbyists for the poultry industry. They have a lot of power and can probably block the bill from ever being given a chance.
I have a thought about how to proceed with this dilemma. The next company that has a reported pathogen in their product should be told to shut down and taken to court by the USDA! Yes, recall the contaminated product but stop all production until the courts test the authority of the USDA. Of course, the problem is to find someone in the USDA with the brass to do anything. We all know that bureaucrats are risk-averse. So until then, cook chicken until dry (above 145 F) and clean everything with bleach. And maybe wear disposable gloves. On second thought, maybe just use “the other white meat”…

 

 

 

 


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Manufacturing and Vertical Integration...

5/2/2015

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This is the third in a series concerning manufacturing and the increasing probability that we will continue to see products being made domestically. (Search for manufacturing to read the other posts). Currently, the vast majority of products are either imported directly, or the parts are imported and assembled here. But there are problems with either approach and they can disrupt the sale and distribution of those products.
The most obvious drawback of offshore manufacturing is the distance factor. The time between ordering and receiving products from another country can cripple an otherwise successful company. Quality issues, time to delivery, import costs and delays, and unintended problems that the supplier has can all lead to a failure.
The second concern is that of communication. There are language barriers, time to resolve issues, and simple engineering mistakes. There is the case of a start- up company that sent engineering drawings to the Chinese manufacturer with all of the measurements in fractional inches assuming that they would understand the product. But, the first 100 prototype parts came back in metric measurements and nothing could be assembled.
But perhaps the most important aspect is the ability for a company to be nimble and flexible in their manufacturing processes. For example, what happens if a competitive product appears and the need for a reduction in number of products assembled decreases? How fast can the supply pipeline be stopped? Or conversely, what happens when your product sells really well and you need more? Can the demand be met in a timely fashion? All of the above mentioned problems can be encountered in this horizontal integration model. This simply means that the individual processes are detached from a controlled source. The design, production, and distribution are not centrally located or under the company’s ability to react efficiently. One of the best answers is in the vertical integration paradigm.
Vertical integration can be considered “Back to the Future” as it was a mainstay of the early 20th century. Andrew Carnegie realized that centralized and controlled manufacturing would strengthen his steel business. So, he owned the mines that provided the ore, the coke that fueled the furnaces to melt the ore, trains to transport the steel, and the factories to provide the finished product. The same was true for the oil companies. So, what would the current start-up electronics company look like if it was vertically integrated?
The design engineers, printed circuit board manufacture, component selection, assembly, quality control, and distribution would all be located in the same facility. If not all literally in the same building they would be close enough to respond to problems, changes in production numbers, and customer response. Add advertising and marketing and we have a true latchkey business. No offshore parts, no call centers with non-English support, and fast turnaround.
There are already good examples of this vertical integration. Tesla Motors in Fremont, California has its design team, engineers, and production in one facility. And, the concept is catching on again. It would be great to see American products not only succeed but to thrive. And, vertical integration can make the difference between success and failure…

 

 


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