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Manufacture, Import, Export – Uh Oh!

Written by Orchid

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February 23, 2013

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There’s a point of pride in that “Made in the U.S.A.” stamp. But, have you ever wondered what you would see stamped on parts if the camera zoomed in on foreign military bases and nuclear development sites?   Mainstream media rarely covers the plight – and flight – of parts and data from US manufacturers to hostile foreign governments.  In plain site, however, are the reports of the Department of Justice, which cite the breaks in the defense contract manufacturing chain. Released December 2012 is an 86-page report by DOJ, summarizing just the major U.S. export enforcement, economic espionage, trade secret, and embargo-related criminal cases pursued between January 2007 and December 6, 2012.  Any one of the cases could star Tom Cruise, along side the latest Hollywood bad guy, in plots that would keep screenwriters employed for years.  The problem of course being that these are real people, real events, and problems for current manufacturers. Looking at a variety of these cases through the lens of manufacturing are there some simple, practical tips for consideration by management and solid employee training?  To be sure, one must rattle off at least the basics of compliance, such as the Arms Export Control Act (AECA), the International Emergency Economic Powers Act (IAR), and so forth.  But how can we make compliance specifications easier and more tangible for our manufacturing workforce? First, post a global map on the wall and red-line countries on the Department of State, Directorate of Defense Trade Controls, “Country Policies and Embargoes” website page.  It is a fast, easy way to stay atop unstable regions with a single click.  And, when current events are significant, such as the reported North Korean nuclear device testing on February 12, 2013, print out a report, paste it up as well, and link it with classroom yarn to the highlighted country.  Reliance upon employees to expound geography lessons and read foreign news stories can be misplaced.  This exercise takes its inspiration from the type of town-center news bulletin boards used by Jefferson, Hamilton, Jay, and Madison.  Employees should be at least current in their knowledge of the travel advisory list so that they ask questions when calls and e-mails come in to the plant. Second, provide explanations and demonstrations of how each employee’s job contributes to the final product for the Department of Defense or its contractor.  An employee who makes 5,000 identical parts measuring less than 1” in size may not reflect on a daily basis about the relative harm that can ensue if the component part makes its connection into military equipment in a hostile nation or terrorist organization.  Adam Smith may have launched our still-current thinking on labor force specialization and government contract quality control tolerances may reinforce hyper-specialization, but creation of a culture of compliance requires integration of every worker into the globe and every part into the end product and its capabilities. Third, establish multiple layers of inventory controls that include physically reviewing the parts and equipment.  Computers have a critical place in the global market, but so too do human eyes and hands.  More than one case in the 2012 Summary involved employees taking parts and equipment off-site and selling them on e-bay.  Operational controls should be a multi-sensory activity, conducted by more than one person. The practical approach to manufacturing compliance is workforce education and strategic utilization.  The compliance officer cannot be everywhere at once, but can engage the company-wide workforce.  Tools from visualization techniques to current events to parts integration to hands-on security can all be designed to buttress that “Made in the U.S.A.” stamp for stays with the U.S.A. and its allies.

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