As can be seen, anatomically speaking, these two factories
are almost complete opposites. In the latter case, the sales
price is set according to the “going price” on the market.
The company’s sales division is busy carrying out energetic
marketing activities in sales promotion, distribution channels,
and other areas. Meanwhile, all of the employees in the production
division are equally busy with broad-reaching efforts
to completely eliminate human errors, product defects, and
waste. As a result, the company is able to maintain sales, suppress
costs, and turn a good profit.
When profits rise, so does employee morale. In addition, management
is more willing to underwrite such initiatives as R&D,
sales promotions, plant investment, and improvement activities.
Here we have an example of a profitable factory, fueled by
innovation. And remember, innovation is the key to success.
Ten Arguments against the JIT
Production Revolution
People naturally tend to harbor a mild affinity toward one
another. Co-workers tend to harbor a very strong affinity with
their system of “the way things are done,” which they have
built together over the years. As far as they are concerned,
no system could be better for them. They have no desire to
change it. After all, their routine is leveled and is very easy to
live with. Even in the finest-looking factories, life goes on in
the traditional, albeit obsolete, manner.
Improvement starts at the factory:
“Hey Joey, could you roll that set of machines over here?
I want to link them up with this process.”
“Hey, no way. Why all the hassle?”
“Haven’t you heard? We’re dropping this lot production stuff
and gearing up for one-piece flow.”