|
| WebNote |
|
|
Click Here to go...
BACK |
Supplier Cost Control |
|
| |
Womack, Jones and Roos describe yet another major difference in cost control strategies between businesses in the West, and businesses in Japan. In the West, suppliers, subcontractors and their buyers all expect prices and costs to go up over time, due to inflation. But in Japan, all parties expect prices and costs to go down as a function of learning. When suppliers, subcontractors and their buyers collaborate to achieve cost reductions, the gains are shared fairly between all participants. Buyers get a lower price, and suppliers and subcontractors take a larger profit margin. When suppliers and subcontractors achieve cost reductions through their own efforts, buyers allow them to keep the fruits of their labour.
|
|
| |
|
| |
Womack, James P., Jones, Daniel T., Roos, Daniel. The Machine that Changed the World: The Story of Lean Production. Harper Perennial. New York. 1990.
This book is the result of the Massachusetts Institute of Technology's International Motor Vehicle Program -- the most comprehensive examination of the global auto industry ever undertaken. The authors use hard data and intimately informed insight to cut through the myths and misinformation which cloud the common understanding of good manufacturing practice.
|
|
| |
Even though this book focuses on the automobile industry, the model of Lean Production -- which is called "Japan's secret weapon" -- can be applied to any enterprise in any industry. Womack, Jones and Roos bring western readers up to speed with the Japanese concepts of Kaizen (continuous, incremental improvement) and Kanban (just-in-time production), claiming and proving that Lean Production is a superior method for manufacturing excellence.
|
|
|
