Here is the latest posting from Darren Dolcemascolo, who also publishes a lean email newsletter (and does lean consulting, as well).
“First of all, “open book” or transparent costing must be in place. That is, the buyer should be able to know how much it costs the supplier to produce components. “
Working a company that is trying (at least on some level) to get lean, this one would be a huge barrier — the need to build trust. Whether it's procurement building trust with suppliers or management building trust with workers, it can't happen overnight.
Is your company anywhere close to having this kind of supplier relationships? Tell us about it by clicking on “Comments”.
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Check out my latest book, The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation: