Comments on: Time for GM and Ford to Heed Jim Womack’s Advice http://www.reformingprojectmanagement.com/2008/11/13/885/ The magazine for the project age Fri, 15 Apr 2011 17:20:14 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: David Schmaltz http://www.reformingprojectmanagement.com/2008/11/13/885/comment-page-1/#comment-20806 David Schmaltz Fri, 14 Nov 2008 11:22:23 +0000 http://www.reformingprojectmanagement.com/2008/11/13/885/#comment-20806 Hal: Even the lean automakers with operations in the US are sweating GM and Ford's troubles. Toyota uses the same suppliers and has depended upon GM and Ford to provide enough demand to keep those suppliers (and the suppliers of the suppliers) viable. Toyota's US volume can't do that alone. Rather than just being in fierce competition with each other, there's an intricate and delicate social network within this industry, and I suspect within every industry. This community is not, as the invisible hand would have it, out to do their competitors in, but to forge space within a cooperative network without overtly colluding, which would be illegal. Should GM and Ford fold, expect to see the Toyotas head back to Japan. Their supplier management model relies upon GM and Ford also managing their suppliers and the rest of their business well. Seems no company is an island, either. Hal: Even the lean automakers with operations in the US are sweating GM and Ford’s troubles. Toyota uses the same suppliers and has depended upon GM and Ford to provide enough demand to keep those suppliers (and the suppliers of the suppliers) viable. Toyota’s US volume can’t do that alone.

Rather than just being in fierce competition with each other, there’s an intricate and delicate social network within this industry, and I suspect within every industry. This community is not, as the invisible hand would have it, out to do their competitors in, but to forge space within a cooperative network without overtly colluding, which would be illegal.

Should GM and Ford fold, expect to see the Toyotas head back to Japan. Their supplier management model relies upon GM and Ford also managing their suppliers and the rest of their business well. Seems no company is an island, either.

]]> By: John Hunter http://www.reformingprojectmanagement.com/2008/11/13/885/comment-page-1/#comment-20805 John Hunter Fri, 14 Nov 2008 03:28:35 +0000 http://www.reformingprojectmanagement.com/2008/11/13/885/#comment-20805 Here is an article my father wrote in 1986 about the <a href="http://williamghunter.net/articles/longtermcomentary.cfm" rel="nofollow">foolishness of bailing out AMC</a>: "American Motors is an old, weak fish with bad eyesight in a turbulent sea populated with aggressive, healthy predators. These predators are familiar - both foreign (Japanese and European) and domestic (General Motors and Ford). Some are new, unfamiliar breeds from such places as Korea. I predict American Motors will stop making cars in Wisconsin in the near future, whether or not the state's money is used for a temporary propping-up operation." Times have changed and GM has squandered their position. They had plenty of notice 3 decades ago but they failed to adopt the practices of Toyota and Deming. Here is an article my father wrote in 1986 about the foolishness of bailing out AMC: “American Motors is an old, weak fish with bad eyesight in a turbulent sea populated with aggressive, healthy predators. These predators are familiar – both foreign (Japanese and European) and domestic (General Motors and Ford). Some are new, unfamiliar breeds from such places as Korea. I predict American Motors will stop making cars in Wisconsin in the near future, whether or not the state’s money is used for a temporary propping-up operation.”

Times have changed and GM has squandered their position. They had plenty of notice 3 decades ago but they failed to adopt the practices of Toyota and Deming.

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