GM Red Tags Dealer Inventory

By Jon Miller | Post Date: November 14, 2005 12:51 PM | Comments: 0

Oh the irony. I didn't know whether to laugh or cry when I read the first sentence of the Wall Street Journal article General Motors Unveils New Incentive Program.

"Hoping to boost sales, General Motors Corp. announced a new incentives program of "Red Tag" prices on cars and light trucks through Jan. 3."

Lean companies red tag things they don't need as the first step in 5S. In other words red tags signify scrap, obsolete, excess, or unnecessary items. Please don't red tag things you want your customers to think are good products.

I have been conditioned to see things with red tags on them as the result of a 5S sorting activity. I no longer see "red tagged" items in stores as items for sale.

Quick hint to the Lean team at GM: give the marketing & sales folks a clue. Ask them to call the new incentive program something else.

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