GM parts supplier declares ch 11 . . .
07-15-16, 03:08 PM
#16
The Japanese automakers treat their suppliers differently than the American automakers. The Japanese learned from the American Dr. W. Edwards Deming, now revered as a quality guru, that you should work cooperatively with suppliers rather than dictating to them; the Americans refused to learn from their own. In study after study, suppliers consistently say that they prefer to work with the Japanese automakers rather than the American ones because the Japanese treat them with more respect.
If an automaker wants something from a supplier, like lower-cost parts, Dr. Deming said that the buyer should work together with the supplier to figure out how to do that, to the benefit of both supplier and buyer. An automaker should not dictate "Lower your costs or else!" because the supplier may then be forced to sell at money-losing prices, the supplier eventually goes bankrupt and the automaker must stop assembly lines while they are forced to wait for the supplier. In the end, it is bad for the supplier and bad for the automaker.
If an automaker wants something from a supplier, like lower-cost parts, Dr. Deming said that the buyer should work together with the supplier to figure out how to do that, to the benefit of both supplier and buyer. An automaker should not dictate "Lower your costs or else!" because the supplier may then be forced to sell at money-losing prices, the supplier eventually goes bankrupt and the automaker must stop assembly lines while they are forced to wait for the supplier. In the end, it is bad for the supplier and bad for the automaker.
07-15-16, 03:10 PM
#17
You hit the nail on the head. I have assisted a college buddy with his relatively small company in a niche industry. While he has dealt successfully with national retailers, several years ago one of the big box stores came to him for a line of his product. Initially he was enamored at the attention, but after a short time of dealing with their stocking requirements, price points, and slow pay, he cut his losses and terminated the relationship.
07-15-16, 03:53 PM
#18
That is the stupidity of LEAN manufacturing. Rule one in lean is don't stock any excess parts only make what you use now. The other stupid part of any manufacturing is having anything done by a vender, it adds cost to the product because you the manufacture have to pay the venders inflated price on the items. Now why is that? Because the vender is a whole nother company with all the taxes, overhead, building and logistics to have to pay for.
07-15-16, 05:12 PM
#19
Lexus Champion
That is the stupidity of LEAN manufacturing. Rule one in lean is don't stock any excess parts only make what you use now. The other stupid part of any manufacturing is having anything done by a vender, it adds cost to the product because you the manufacture have to pay the venders inflated price on the items. Now why is that? Because the vender is a whole nother company with all the taxes, overhead, building and logistics to have to pay for.
07-15-16, 07:59 PM
#20
Lexus Fanatic
iTrader: (20)
The Japanese automakers treat their suppliers differently than the American automakers. The Japanese learned from the American Dr. W. Edwards Deming, now revered as a quality guru, that you should work cooperatively with suppliers rather than dictating to them; the Americans refused to learn from their own. In study after study, suppliers consistently say that they prefer to work with the Japanese automakers rather than the American ones because the Japanese treat them with more respect.
If an automaker wants something from a supplier, like lower-cost parts, Dr. Deming said that the buyer should work together with the supplier to figure out how to do that, to the benefit of both supplier and buyer. An automaker should not dictate "Lower your costs or else!" because the supplier may then be forced to sell at money-losing prices, the supplier eventually goes bankrupt and the automaker must stop assembly lines while they are forced to wait for the supplier. In the end, it is bad for the supplier and bad for the automaker.
07-15-16, 10:05 PM
#21
Lexus Fanatic
That is the stupidity of LEAN manufacturing. Rule one in lean is don't stock any excess parts only make what you use now. The other stupid part of any manufacturing is having anything done by a vender, it adds cost to the product because you the manufacture have to pay the venders inflated price on the items. Now why is that? Because the vender is a whole nother company with all the taxes, overhead, building and logistics to have to pay for.
07-16-16, 12:24 PM
#23
Lexus Champion
Just-in-time manufacturing works best when you have suppliers close by (ideally within the same manufacturing campus). That way, there is NO NEED to stock any parts at all; they come in only as you need them. The manufacturer saves money by not having a huge warehouse of stock.
But manufacturers want to save even more money so they continue to source supplies from the lowest-cost manufacturers all around the world.
If you have your suppliers spread out all over the world, what you are doing is transferring your warehouse from one big building to hundreds of trucks, ships and planes between the suppliers' factories and your final assembly line. Transportation is constantly going between the suppliers and the final assembly line.
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