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Outsourcing (True Story)

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J.Otto

Well-known member
Joined
Aug 1, 2005
Posts
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A Japanese company (Toyota) and an American company (Ford Motors) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing. Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 2 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the rowers. There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses. The pension program was trimmed to 'equal the competition' and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles. Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses. The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year's racing team was out-sourced to India . Sadly, the End.

Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages. TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results: TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses. Ford folks are still scratching their heads, and collecting bonuses. IF THIS WEREN'T SO TRUE IT MIGHT BE FUNNY
 
Not saying I am for it, but the majority of all foreign manufacturing plants located in the US are non-union. The U.A.W has tried many times to unionize these facilities but have failed in most of their attempts. Labor costs are drastically cheaper at the non-union plants.
 
Along the same lines - what is better for the US economy/worker?

Buying a Toyota built in the USA or a Ford built in Mexico?
 
Uh, great true story. Except Ford has had 10 consecutive profitable quarters, and made $1.6 billion last quarter. So far they have made $7.7 billion this year. They also just signed a 4 year contract with the UAW.
 
I bet he owns a hummer!!! xD


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Not saying I am for it, but the majority of all foreign manufacturing plants located in the US are non-union. The U.A.W has tried many times to unionize these facilities but have failed in most of their attempts. Labor costs are drastically cheaper at the non-union plants.

As a member of a union, I feel qualified to say say this. Being non-union dosen't necessarily mean you work in a sweat shop. Most of the factories are located in low cost of living areas, the workers have decent bennifits, good morale, and wages in line with the job they actually do.
That being said, im glad to see Ford (and GM and Chrysler too) sucessful these days. Their sucess might actually have something to do with the fact that their finally putting out a product one might actually desire to have. Go figure.
 
Uh, great true story. Except Ford has had 10 consecutive profitable quarters, and made $1.6 billion last quarter. So far they have made $7.7 billion this year. They also just signed a 4 year contract with the UAW.


The story is a bit old, but I do believe it was true at one point. anyway... still a great example of how American corporate mangement thinks!

jobs should remain in our borders. this stuff has been going on for too long, and we wonder why our economy is troubled. So many jobs have been exported outside, and it only benefits the top execs and shreholders; not the workers or economy.
 
Along the same lines - what is better for the US economy/worker?

Buying a Toyota built in the USA or a Ford built in Mexico?

Ive wondered this and also what the impact is on all the new plants in the SE US. Kia is in Georgia near my old college, and Mercedes, vW, and BMW are all busy in then the heart of Dixie. Nissan, Hundai, and Toyota all make cars down south as well. Does their growth, and the non-union jobs they created offset (on a national level) the pain in Michigan, Ohio, and other traditional US auto producing areas? What is the total plus and minus total? I'd love to see some studies.

I bought a 2008 Toyota...built in San Antonio. Would I have helped our nation more buying a Ford? It's not a rhetorical or smart -ss questions...I really wonder.
 

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