 The
Newsletter of Lean Manufacturing & Factory Science
May
19,
2003
www.strategosinc.com
Manufacturing
Strategy
The
Great Nuclear Fizzle at Babcock & Wilcox
In
the late 1960's, Babcock and Wilcox already had more than 100 years
experience with steam boilers for marine propulsion and power generation. When
the company entered the nuclear power business, everything seemed to go
wrong. The aftermath brought delivery delays, strikes,
lawsuits, red ink and a bizarre suicide. B&W even managed to create
new competitors in a market niche they had previously owned outright.
The
conventional analysis of this classic case study brings forth a long
laundry list of management errors, mistakes and miscalculations. Yet, this
seems improbable for such an experienced and competent organization. How
could they make so many mistakes in so many different areas?
Wickham
Skinner first used this example in his 1978 book, "Manufacturing
in the Corporate Strategy". He
traced B&W's troubles to a single root cause: management had failed to
identify the "Key Manufacturing
Task". Everything else
emanated from this simple omission. As Karl von Clausewitz noted, simple
does not mean easy.
This
issue of "Lean Briefing" initiates a series on Manufacturing
Strategy and how it fits with Lean
Manufacturing. You may download The
Great Nuclear Fizzle along with teaching and discussion
notes. It makes a great introduction for a classroom or management team.
The case is a bit long, but entertaining and easy to read. This narrative
first appeared in Fortune magazine.
Our
next issue pursues the topic of Manufacturing Strategy with a discussion
of The Focused Factory, another
important insight from Wickham Skinner. See you then.
Quarterman
Lee
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