Comments on: Toyota "Bucks Trend" by NOT Outsourcing http://www.leanblog.org/2005/10/toyota-bucks-trend-by-not-outsourcing/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: "Favorite Posts" Q4 2005 — Lean Blog http://www.leanblog.org/2005/10/toyota-bucks-trend-by-not-outsourcing/#comment-22779 "Favorite Posts" Q4 2005 — Lean Blog Thu, 28 Jul 2011 03:08:19 +0000 http://leanblog.bigbigdesign.net/2005/10/toyota-bucks-trend-by-not-outsourcing/#comment-22779 [...] Toyota Bucks Trend by NOT Outsourcing [...] [...] Toyota Bucks Trend by NOT Outsourcing [...]

Like or Dislike: Thumb up 0 Thumb down 0

]]> By: Anonymous http://www.leanblog.org/2005/10/toyota-bucks-trend-by-not-outsourcing/#comment-152 Anonymous Thu, 03 Nov 2005 22:36:00 +0000 http://leanblog.bigbigdesign.net/2005/10/toyota-bucks-trend-by-not-outsourcing/#comment-152 1) Vertical integration failed in GM because the unions were able to use the vertical integration to their advantage. By strategically striking a component line, multiple assemly lines go down, followed by more component lines. In this environment, mangement stops considering the vertical integration an asset and begins to neglect it in favor of simpler outsouring arrangements. <br/>2) Outsourcing masks ineffective management. By outsourcing, an immediate cost savings can generally be had without hassles. Any problems can be blamed on the suppliers. 1) Vertical integration failed in GM because the unions were able to use the vertical integration to their advantage. By strategically striking a component line, multiple assemly lines go down, followed by more component lines. In this environment, mangement stops considering the vertical integration an asset and begins to neglect it in favor of simpler outsouring arrangements.
2) Outsourcing masks ineffective management. By outsourcing, an immediate cost savings can generally be had without hassles. Any problems can be blamed on the suppliers.

Like or Dislike: Thumb up 0 Thumb down 0

]]> By: Steve http://www.leanblog.org/2005/10/toyota-bucks-trend-by-not-outsourcing/#comment-142 Steve Wed, 26 Oct 2005 21:04:00 +0000 http://leanblog.bigbigdesign.net/2005/10/toyota-bucks-trend-by-not-outsourcing/#comment-142 It is obvious that the methods that Deming taught the Japanese still ring true. <br/><br/>You don't outsource because it is a fad. You outsource only if you can save money.<br/><br/>If someone is going to offer a better product and/or price that what Toyota makes internally, they have to be more productive. In the manufacturing world, elimination of scrap and rework accomplishes this. In the IT sector, the same concepts apply.<br/><br/>Lost cost per hour doesn't necessarily equate to lowest cost of production.<br/><br/><br/>Steve Larrison<br/>www.surviveoutsourcing.com It is obvious that the methods that Deming taught the Japanese still ring true.

You don’t outsource because it is a fad. You outsource only if you can save money.

If someone is going to offer a better product and/or price that what Toyota makes internally, they have to be more productive. In the manufacturing world, elimination of scrap and rework accomplishes this. In the IT sector, the same concepts apply.

Lost cost per hour doesn’t necessarily equate to lowest cost of production.

Steve Larrison
http://www.surviveoutsourcing.com

Like or Dislike: Thumb up 0 Thumb down 0

]]>