Message
lets get into the root cause of the
problem:
The short sight of corp. is the one to
blame. Compare to compensation measurement of high level management of
America and Japan, the north American MFG is based on short term results (just
look at Wall St. "meet expectation of Qx" press release and bonus of all the
high level make). Drive to short term profit at ANY cost=including farm
out to off shore and risk the brand name are all fair game play (don't tell me
these guy just so stupid without notice the cost/benefit analysis. cost
them nothing and personally benefit a lot). However, the Japanese CEO
reward is based on long term results, therefore, much less motivation to get
into the same game. The corp planning is more of long term (road map for
corp Japan is in many times = some of them are 25-30 years, of the north
American counter part (usually 3-5 years road map for corp if you lucky to get
one). Unless the overall corp structure is changed from short term to long
term focus, the same trend will continue (sad to see the MFG loss the
competitive edge slowly, but surely).
My 2 cents. (Graham, you start this,
don't blame me on the comment of this sensitive political
issue).
jk
Hi Rudy,
Interesting
comments.
If you think about what has happened over the last decade
or so, one can see that the PCB has been reduced to a commodity even though
each one is custom. A "custom commodity" now there is an oxymoron for
you...;-)
With most OEMs, it seems that buyers are rewarded (or at
least historically have been) for getting the best price, not the best
value.
Seems also that the OEMs have done much to create this
mentality. As soon as they gave up manufacturing and turned to outside, they
began to demand price cuts from folks who spent money on the R&D to
develop technologies that they (the OEM) used to have to spend.
The
producer/developer had obviously hoped to hold the line on price for a while
with the product and thus recoup some of that development cost. If the
producer balked, the OEM simply transferred the technological knowledge,
(which they felt they owned), to the next lower tier on the food chain. Not
having any R&D to recoup, the next guy in line would immediately make it
for less. I have heard variations on this story several times from different
folks over the last 6-7 years with household names in the role of the
villain.
Seems like now that some of the seeds of ruin many OEMs
have sowed are now taking root. If one does not treat their vendors
ethically, why should they expect them to act ethically in return?
I am not condoning the actions of the wayward vendors but it
seems clear where they got at least some of their lessons in business
ethics.
All the best in the new year.
Peace,
Joe
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Perhaps I could add that famous remark attributed to General
McArthur:
If my foresight was half as good as my hindsight, I’d be a
damnsight!
--
Happy New Year!
Regards, Graham
Naisbitt
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Web:
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Sales:
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Fleet, Hampshire GU51 3QF UK
Phone:
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