Posted on 12/16/2008 8:15:56 AM PST by OldTCS
Received today in email:
A Modern Parable
A Japanese company ( Toyota ) and an American company (Ford Motors) decided to have a canoe race on the Missouri River . Both teams practiced long and hard to reach their peak performance before the race.
On the big day, the Japanese won by a mile.
The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.
Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.
Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.
They advised, of course, that too many people were steering the boat, while not enough people were rowing.
Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager.
They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to 'equal the competition' and some of the resultant savings were channeled into morale-boosting programs and teamwork posters.
The next year the Japanese won by two miles.
Humiliated, the American management laid off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses.
The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year's racing team was out-sourced to India .
Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.
TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter's results:
TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.
Ford folks are still scratching their heads, collecting bonuses... And asking for a "bail-out"...
IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY.
Moral of the story?
I am moving to Japan.
Moral of the story?
Beware UAW Union members sending out stupid emails badmouthing management as the problem with stupid analogies.
“For November 2008, versus that month one year ago, American Honda sales dropped 31.6 percent. Toyota Motor Sales U.S.A.’s sales slid 33.8 percent, and VW of America, Inc. fared slightly better with a sales decrease of 19.2 percent.”
Honda is going to three day work week. No layoffs for ‘associates’. Department heads will work full time. If you’re hourly and want to work more you’re invited back. They’ll find something for you to do.
Until the Shrinking 3 can figure out that their current business model is akin to selling dollar bills for 75 cents, it won’t matter how many dollars they sell, they’ll continue to go belly up.
I still remember the time a couple Ford supplier quality auditors were in our plant. They knew Honda and Toyota were our biggest customers, but wanted to know why we couldn't provide the same quality to them. "What are they doing? They're auditing you more, aren't they?" I was stifling back the laughter/tears. Idiots. The transplants are not auditing near as much, getting into our hair, micro-managing us and finding excuses to block quality improvements and changes at every turn because of a fear that something will go wrong and they'll get punished for it.
Ford says they don’t want bailout money.
When they eliminated the Mark VIII and turned the Town Car into a Grand Marquis, that said how they were thinking.
Much like the Dixie Chicks, they don’t respect their market. How else do we explain the Fusion?
The transplants pay their bills on a timely basis; that’s the biggest difference to suppliers.
RE :”Here’s something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can’t make money paying American wages.
TOYOTA has spent the last thirty years building more than a dozen plants inside the US . The last quarter’s results:
TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses. “
There are costs with trying to manage a plant overseas (education, communication, travel, culture) but the UAW and Northern States drive the costs so high, anything is better.
I've lived there....you probably wouldn't like it!
Yeah, now that I think about it, I like my space.
"You know it's a real crisis when even Toyota Motor Corp. is seriously hurting - and it is... Toyota's vehicle sales and profits are plummeting globally... It has slashed its profit projections almost 70% for the current fiscal year, and its credit rating has been downgraded."
The article notes that Toyota is more truck-oriented than Honda, which has been hurting it recently. I expect some degree of recovery as people get used to cheaper gas prices again. We'll see if 2009 brings any pent-up demand from the lost sales of 2008. I'm inclined to favor 'gloom and doom' long term, but in the near term I think that there is a chance, if government doesn't completely screw up, for a more rapid recovery in the auto sector than most are expecting. But that comes with a big caveat about the Democrats controlling all their worst instincts...
buy it for a dollar, sell it for .99 cents, and make up the difference in volume.......
Well it is more like 1 person steering, 1 person rowing, 2 people in the jobs bank, and 4 people retired with full pay.
Don't blame management for that. Blame the UAW that exists to make sure that people who don't work not only get paid but get paid well.
Retired with full pay?!? I retired from the Navy and only get 1/2 pay!
Here’s a great idea! Have the Shrinking 3 collect cans and bottles with a 5 cent deposit from around the country and haul them to Michigan and cash them in for a dime apiece! Newman, you magnificent Bastard!
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