This post on Kevin Meyer’s Evolving Excellence blog brings up some good challenges to the traditional “avoid fixed costs” rationale for outsourcing. The post (and the comments) point out Wall Street’s obsession with achieving a total variable cost model. There is certainly a lot of appeal. Traditional cost accounting works hard to “assign” fixed costs [...]
Gipsie Ranney is a consultant with The Deming Cooperative. A white paper she recently wrote, contrasting NUMMI with The Big Three, has been circulating by email. I requested, and received, her permission to publish it here. Remembering NUMMI Gipsie B. Ranney January, 2009 The discussions of a bailout for the U.S. owned auto industry – [...]
Toyota falls short of GM in global sales – Yahoo News This news article is interesting, because it totally misses the point. First, in the fine print, Toyota fell short of GM, yes, by about 3,000 total cars out of about 9.3 million cars. So, in my book, that is a tie because +/- a [...]