Commercial sustainability needs people.

 

The next time you hear an argument that justifies moving Australian manufacturing to a low  cost country in order to compete, refer to this post on the Evolving Excellence blog describing the work practices in a Toyota’s Kyushu plant.

Labor is much more than a pair of hands doing a repetitive job, it is an opportunity to improve processes and identify and solve problems before they can impact on the customer, or even the next bay in the production line.

It may be hard to get to this point in Australia, but you will have no chance of making the changes necessary  in a contract manufacturers plant in a “low cost” country. The accountants will generate their numbers, which can be pretty persuasive until you recognise that they do  not account for the things that make a difference in the market, or count the wasted time, emotion and energy in their “productivity” calculations.

When an abundant  country like Australia becomes  a net importer of food, we have a real structural and strategic challenges in our demand chains that urgently need to be met, and the sooner we recognise the scale of it, and do a bit more than just mouth platitudes, the better.

 

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Demand chains, Leadership, Lean, OE, Operations, Strategy and tagged , , , , , , , , , , , . Bookmark the permalink.

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