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Obi Wan

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Steve said:Good points there.....
Back around the same time, Harley Davidson applied for tariff protection to give them some breathing space to get new products, with a new engine, developed properly and brought to the marketplace, which was granted. The new products were so successful, so competitive, that HD requested that the tariffs be removed ahead ot the agreed time.
They worked with the unions to improve their motorcycles, quality and production methods....

There’s a term for it in engineering, <span style="font-weight: bold">NIH</span>; <span style="font-weight: bold">N</span>ot <span style="font-weight: bold">I</span>nvented <span style="font-weight: bold">H</span>ere.Steve said:...Look at where Harley are today.
Why can't the big three use this example as a business model, and go from there?
The management at old school companies is so dense, so arrogant and so set in their ways they’re incapable of opening their minds to alternative approaches.
They will borrow tools, techniques and, most aggressively, <span style="font-style: italic"><span style="font-weight: bold">buzzwords</span></span>. But using somebody else’s methodologies without understanding and adopting their core principles is like borrowing a surgeon’s scalpel without understanding anatomy.
DNK said:Gee, I'm sorry to bring this old thread up again. I really didn't follow it when it was current.
I kind of follow Clark Howard's blog and he posted an interesting note.
<span style="font-family: 'Comic Sans MS'">"This is not, however, a diatribe about the American worker. It's really general management that has failed. Case in point: There was a GM plant in Fremont, California, that was just about the worst plant since the days of the Yugo. Toyota took the plant over; hired back the exact same workers who were employed there under GM; and it went from worst to first within 2 years. Again, there's nothing wrong with the American worker; it's management that's at fault."</span>
Was wondering if anyone is familiar with this and is this a true statement
Yes, the plant was reopened as a joint venture between Toyota and GM, but with all Toyota management. They also had a completely different union contract, following Toyota’s labor model, <span style="font-weight: bold"><span style="font-style: italic">not</span></span> UAW’s or GM’s.
So while it did indeed demonstrate that American <span style="font-style: italic">workers</span> can be as productive as any, it also showed that the ways American management and labor unions commonly approach production was (and generally still is) deeply flawed.
Warranty costs also include costs from failures of vendor supplied parts. The Fremont plant had to use many US vendors who had not yet been brought up to Toyota’s functional standards.RonMacPherson said:...Quality control at the Fremont plant was only slightly better than most other GM plants(based on an old warranty cost per car report that I read a couple of decades ago). ...
What’s most significant in terms of the current financial situation is that the Fremont plant produced those cars in much less time, with much less manpower.
And GM’s practice was to build in random quality and try to fix problems at the end of the line, before shipping a car out (and sometimes expecting dealers to fix them). Everybody (except apparently US managers) knows that fixing a defect is far more expensive and time consuming than doing it right in the first place.
Toyota’s mantra is to get it right as you build it. So even if the final output is the same Toyota’s way costs less and goes faster.
Toyota changed the production equipment and processes to meet <span style="font-style: italic">their way of doing things</span>, which is something no American car company could have or would have done. And they <span style="font-style: italic">used</span> the equipment and processes according to <span style="font-style: italic">their way of doing things</span>.RonMacPherson said:...Production output was signifigantly better, but that was because Toyota changed the production line equipment and assembling....
If you had given the same equipment and assembly instructions to any of the US auto makers they would have failed immediately. It’s not enough to have the tools. You have to have the understanding and the will to use them correctly.
They use what western analysts call <span style="font-weight: bold">TPS</span>, the <span style="font-weight: bold">T</span>oyota <span style="font-weight: bold">P</span>roduction <span style="font-weight: bold">S</span>ystem. Toyota simply calls it “the way we do things.”RonMacPherson said:... They went more to the "Deming"(sp). suggestions on production...
TPS does include much Deming influence, but it’s far more comprehensive. A great deal of it was developed internally, but it also incorporates concepts from many others, like Henry Ford, Frederick Taylor, Frank and Lillian Gilbreth, and the US War Department.
For more on the subject, I’d highly recommend <span style="font-style: italic">The Machine That Changed the World</span> by Womack and Roos. It sort of kicked off America’s understanding of why the Japanese car makers were kicking our butts. Sadly, even though it was first published eighteen years ago and numerous other books, studies and analyses have followed, most of the managers in this country are still clueless.
PC.