Creating lean suppliers: diffusing lean production throughout the supply chain

Article Abstract:

Honda of America has developed a comprehensive approach to teaching the principles of lean production to its suppliers in which Honda and the supplier work intensively on narrowly targeted improvement projects in the supplier's plant. Called BP (for "Best Process," "Best Performance," "Best Practice"), this approach has been quite successful in enhancing supplier performance; suppliers participating in the program in 1994 averaged productivity gains of 50% on lines reengineered by BP. However, Honda has found there is high variation in the extent to which suppliers were able to transfer the lessons taught beyond the line or plant where the BP intervention occurred. Drawing on case studies of three of Honda's U.S. suppliers, this article explores how the BP process interacts with the broader relationship between customer and supplier in terms of organizational learning, technology transfer, and the transplantation of Japanese management practices to the United States. These cases illustrate the dynamics of the learning process and the complex relationship that emerges between the "teacher" (provider) of valuable knowledge and the "student" (recipient). (Reprinted by permission of the publisher.)

Honda of America Manufacturing Inc.

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Developing co-operative buyer-supplier relationships: a case study of Toyota

Article Abstract:

Over recent years many business have recognized that there are strong competitive advantages in developing co-operative partnerships with suppliers. An important challenge for many companies is to identify the factors to enable them to move from relationships characterized by strong buyer power and bargaining position, to partnerships based on trust and co-operation. The purpose of this paper is to consider factors that may influence the development of co-operative buyer-supplier relationships. A case study is presented which illustrates the developing relationship between an automotive manufacturer, Toyota Australia, and its suppliers, as part of a new supplier strategy. Several factors are proposed which provide areas for further research. These include the consideration of similarities between the industry and technologies of buyer and suppliers, prior experiences of change among suppliers, effective communications between buyer and suppliers, and the importance of experiential learning in the acceptance of change. (Reprinted by permission of the publisher.)

Management, Equipment and supplies, Business-to-business market, Business to business market, Toyota Motor Corporation Australia Ltd.

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Manufacturing strategy regained: evidence for the demise of best-practice

Article Abstract:

The long-term trend of manufacturing management to adopt "best practice" has had an expressed preference for Japanese production systems as a means of generating industrial success. While commentators have noted the lack of correlation between imitation and competitive advantage, one of the reasons for this failure - namely, the very range of operating methods among Japanese producers - has not been so fully explored. This article uses evidence from the U.K. automobile industry to illustrate the disappointing impact of Japanization and best practice, and it suggests that managers should concentrate on the development of strategic competencies and the aligning of manufacturing with corporate strategy. (Reprinted by permission of the publisher.)

United Kingdom, Research, Japan, Manufacturing processes, Manufacturing, Production standards

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