Comments on: 60 Minutes: So will GM be "braindead?" http://www.leanblog.org/2006/04/60-minutes-so-will-gm-be-braindead/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Fri, 10 Feb 2012 10:01:31 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chet Frame http://www.leanblog.org/2006/04/60-minutes-so-will-gm-be-braindead/#comment-423 Chet Frame Mon, 03 Apr 2006 13:52:00 +0000 http://leanblog.bigbigdesign.net/2006/04/60-minutes-so-will-gm-be-braindead/#comment-423 I saw the program, and had the same take aways as you and your wife. The other thing that caught my attention was the negative comments about moving jobs to Mexico. They have moved jobs out of the U.S. to Mexico, Canada and many other countries. The Delphi Engineering Center is here in Juarez. They can't move many more jobs out of the country unless they move the assembly plants as well, but it seems like a stick that they use to beat up on their employees. "We'll move to a lower cost country." The direct labor cost is a very small part of their cost structure. They have beat their vendors for every cent they can wring out of the components they buy. They have not worked as diligently at Lean Management or Lean Office as a way to reduce their ~50% overhead. I saw the program, and had the same take aways as you and your wife. The other thing that caught my attention was the negative comments about moving jobs to Mexico. They have moved jobs out of the U.S. to Mexico, Canada and many other countries. The Delphi Engineering Center is here in Juarez. They can’t move many more jobs out of the country unless they move the assembly plants as well, but it seems like a stick that they use to beat up on their employees. “We’ll move to a lower cost country.” The direct labor cost is a very small part of their cost structure. They have beat their vendors for every cent they can wring out of the components they buy. They have not worked as diligently at Lean Management or Lean Office as a way to reduce their ~50% overhead.

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