OM in the News: Apple and its Supplier Problems (Again)

Rainto, 12, said he was worried about landslides in the mine he works in Indonesia
Rainto, 12, said he was worried about landslides in the mine he works in Indonesia

BBC’s secret filming of a Chinese iPhone production line showed Apple’s longstanding promises to protect workers were routinely broken (BBC News, Dec. 18, 2014). It found standards on workers’ hours, ID cards, dormitories, work meetings and juvenile workers were being breached at the factories. Exhausted workers were filmed falling asleep on their 12-hour shifts at the Pegatron supplier. One undercover reporter had to work 18 days in a row despite repeated requests for a day off.

Apple responded, saying: “We are aware of no other company doing as much as Apple to ensure fair and safe working conditions. We work with suppliers to address shortfalls, and we see continuous and significant improvement, but we know our work is never done.”

The poor conditions in Chinese factories were highlighted in 2010 when 14 workers killed themselves at Apple’s biggest supplier, Foxconn. Following the suicides, Apple published a set of standards spelling out how factory workers should be treated. It also moved some of its production work to Pegatron’s factories on the outskirts of Shanghai. But BBC’s undercover reporters found that these standards were routinely breached on the factory floor. Overtime is supposed to be voluntary, but none of the reporters were offered any choice. One reporter was housed in a dormitory where 12 workers shared a cramped room.

BBC also travelled further down Apple’s supply chain to Indonesia. Apple says it is dedicated to the ethical sourcing of minerals, but BBC found evidence that tin from illegal mines could be entering its supply chain. It found children digging tin ore out by hand in extremely dangerous conditions. Apple says its Indonesia situation is complex, with tens of thousands of miners selling tin through many middle men. It wrote: “The simplest course of action would be for Apple to unilaterally refuse any tin from Indonesian mines. But that would also be the lazy and cowardly path, since it would do nothing to improve the situation. We have chosen to stay engaged and attempt to drive changes on the ground.”

Classroom discussion questions:

1. Evaluate Apple’s choices.

2. Why is supply chain integrity so important–and so difficult?

 

OM in the News: Robots That Kill

robot cage“The Return of the Killer Robots”—sounds like the title of a bad sci-fi movie!  But The New York Times (June 17, 2014) reports the dangers that robots pose to the humans who work alongside them, documenting at least 33 workplace deaths and injuries in the U.S., a number may well understate the perils ahead.

Robots have long toiled alongside workers in factories and warehouses, where they load boxes with items ordered online, drill and weld car parts, or move food from one conveyor belt to the next.

Unlike today’s robots, which generally work in cages, the next generation will have much more autonomy and freedom to move on their own. “In order for robots to work more productively, they must escape from their cages and be able to work alongside people,” said one industry expert. “To achieve this goal safely, robots must become more like people. They must have eyes and a sense of touch, as well as the intelligence to use those senses.”

Until now, robots have largely been used in manufacturing, particularly in the auto industry. They have mostly been “dumb robots,” designed for repetitive tasks that are dirty, dangerous or dull. But the robots whose generation is being born today collaborate with humans and travel freely in open environments where people live and work. They are products of the declining cost of sensors and improved artificial intelligence algorithms in areas such as machine vision. The Baxter robot, which does repetitive jobs in workplaces like packaging small items, is designed to sense humans and stop before coming in contact with them. It also has a display screen that cues those who are nearby about what the robot is focusing on and planning to do next.

Classroom discussion questions:

1. Describe some service applications of robots.

2. How are robots a part of Computer-Integrated Manufacturing (CIM), discussed in Chapter 7?