May 24 2013
Canada, a Model for Australia’s Automotive industry? | Business Spectator
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“Ford Australia’s move to close its two Australian plants from 2016 and transition to import-only brands only reinforces the sense of a looming death knell. But that isn’t the case with every developed-world auto sector struggling to compete with high domestic production costs and cheaper, mostly-Asian-built imports. Canada’s auto sector has also struggled with factors that would sound familiar to an Australian onlooker, such as its own high dollar, volatile domestic demand, offshore competition and wavering government subsidies.
But as much as those conditions in Canada instigated uncertainty, cuts and job losses, that struggle, which gained pace as the global financial crisis took hold, has also produced a level of productivity-focused innovation worth noting for any manufacturer or policymaker wondering if Australia’s auto sector has crossed its rubicon.”
Ford is closing its plants in Australia, which threatens the entire local automotive industry. The author looks to Canada for a model Australia could follow for this industry to survive and thrive. The article is mostly about Canada, and specificially about the Magna Dortec door latch plant Northeast of Toronto.
See on www.businessspectator.com.au
Jun 4 2013
Enterprise Ireland and Lean | Irish Times
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“The Japanese are renowned worldwide for their car production where the concept of the management philosophy Lean derives from. It all began at Toyota when the car manufacturers discovered a new, more efficient method of producing cars valued by customers all over the world. The principles learned at Toyota became known as Lean which is claimed can be applied to almost any business. The core principle is creating value by reducing waste and unnecessary risk.”
While informing us that the Irish government has an agency promoting Lean, this article reflects common misconceptions.
No, it’s not a “Japanese management philosophy.” it is an approach developed by individuals who happened to be Japanese, which is not the same. Most Japanese today do not know or practice it, and quite a few non-Japanese do.
And this emphasis on “creating value” is an American talking point, not the Toyota Production System.
According to the article “Toyota benchmark themselves constantly,” which is news to me. While it is clear that Toyota is on the lookout for new ideas, I had not heard of Toyota doing benchmarking surveys of competitors. My understanding is that Toyota’s management considers such surveys to be a waste of time.
The article equates Lean with Continuous Improvement, giving the impression that it’s all there is to it.
And finally, the article repeats the Business Week claim that the Shingo Prize is “the Nobel Prize for operational excellence.”
See on www.irishtimes.com
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By Michel Baudin • Press clippings • 0 • Tags: Japan, Lean manufacturing, Shingo prize, Supply chain, Toyota, Toyota Poland, Toyota Production System