Oct 22 2013
Employees are Colleagues, Not Assets | Eric Bigelow | IndustryWeek
See on Scoop.it – lean manufacturing
“A lot of organizations claim that employees are their greatest assets. To many this seems like a very profound way to view the employees. I disagree. I think that this terminology can be very harmful to organizational culture.
The word asset means ‘anything tangible or intangible that is capable of being owned or controlled to produce value.'”
This is a point I have grown tired of making in vain. Assets are things you own and, unless they are slaves, you don’t own the people who work for you. Saying “People are our greatest assets,” is not only inaccurate and distasteful, it also suggests that you want to have as many assets as you can.
In private life, it may be true: the more you own, presumably, the better off you are. Business, however, is different: you want to generate income with as few assets as you can get away with. That’s why you monitor ratios like “Return on Assets.”
Assets and liabilities are mistakenly viewed as positives and negatives. They are in fact technical terms from accounting to designate respectively what you own and what you owe. Whether you like it or not, you own excess inventory, and it is an asset you would rather not have. A 0% long-term loan, on the other hand, is a liability you are happy to have.
In and of themselves, employees are neither assets nor liabilities. On the balance sheet, what the company owes them in benefits appears in the Liabilities column. So does the shareholders’ equity. There should be no value judgement attached to terms like Asset or Liability.
See on www.industryweek.com
Oct 24 2013
Toyota Lagging in Part Standardisation and Platform Sharing | Autocar
See on Scoop.it – lean manufacturing
“Kanban-style just-in time parts deliveries, kaizen policies of continuous improvement – Toyota has been a banner-carrier for these and many other methodologies that long ago gave it an edge when it comes to productivity and robust, repeatable quality.
So it’s a bit of a surprise to hear, as we did last week in Toyota’s Nagoya headquarters, that the company has been a bit less effective when it comes to parts standardisation, platform sharing and common parts strategies.”
I was taken aback by the article’s original title, describing Toyota as a “master of mass production,” but read on nonetheless and found the rest intriguing.
In essence, it asserts that Toyota paid for the autonomy of its product development teams in the form of too many different parts and platforms, and is undertaking to change this for the future.
The article does not say how Toyota proposes to do it.
See on www.autocar.co.uk
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By Michel Baudin • Press clippings 0 • Tags: Common platforms, Part standardisation, Toyota