Dec 5 2014
When Finance Runs the Factory | William Levinson | Industry Week
“Henry Ford achieved world-class results with three key performance indicators (KPIs), none of which were financial. His successors’ changeover to financial metrics, on the other hand, caused the company to forget what we now call the Toyota production system.”
Source: www.industryweek.com
Yes, giving power over manufacturing companies to accountants, as American industry massively did in the 1950s yielded disastrous results. The summary given in this article’s lead paragraph, however, does not match the historical record from other sources.
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Dec 7 2014
Bridging the Gap between Buyers and Suppliers | Robert Moakler | IndustryWeek
Source: www.industryweek.com
Robert Moakler reiterates the well known fact that collaboration between suppliers and customers is a win/win, and offers an e-sourcing platform as the better mousetrap that will make it happen.
As COO of an “online marketplace exclusively developed for the American manufacturing industry,” Moakler is forthright about where he is coming from. But is lack of technology the reason why adversarial, arm’s length relations between suppliers and customers remain the norm?
My own findings on this matter — summarized in Lean Logistics, on pp. 342-350 — is that each side stands to gain a short-term advantage from unilaterally breaking a collaborative relationship, and that the business history of the past 25 years shows examples of this happening.
On the customer side, a new VP of purchasing can instruct buyers to use the information suppliers have shared to force price concessions. Conversely, suppliers can leverage intimate, single-sourcing, collaborative relations with a customer to charge above-market prices.
None of these behaviors is viable in the long term, but not all managers care about the long term, and the toughest challenge in establishing collaborative relations is defusing well-founded fears about the future behavior of the other side.
While wishing Mr. Moakley the best of luck in his business, I don’t believe technology is the problem.
See on Scoop.it – lean manufacturing
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By Michel Baudin • Press clippings • 1 • Tags: Lean supply chain, Supply Chain Management