Robert Price

Blog it up....
RSS Feed
March 27, 2008 7:42 AM  (go back to main view)
Toyota VS Ford....this is good!
A Japanese company (Toyota) and an American company (Ford) 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 8 people steering and 1 person 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, 3 area steering superintendents, and 1 assistant superintendent steering manager.

They also implemented a new performance system that would give the 1 person 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 rower. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses.

The next year the Japanese won by two miles.

Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses 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..]
Post Tags:
Related Posts:
It's Tuesday(7 days ago - 19 Comments)
A little street(18 days ago - 13 Comments)
The Wanker(19 days ago - 6 Comments)
Thru My Eye(28 days ago - 2 Comments)
A weekend in Chicago(35 days ago - 24 Comments)
Blog Comments (5):
Posted by Alex Ha on
nice, good read!
Posted by mahomo on
great story mate, i dare say the british canoe team were basking in past glories of the halcyon days of old, and couldn't get funding anyway ;) when real life situations are converted into layman's terms like this, it shows the absolute absurdity of it all.
Posted by eduardofre... on
This is a great story with a great lesson indeed, look at Japan car manufacturers, they also have plants in Japan and they seem to do well! I think the outsourcing madness in the USA is ultimately -as you have pointed out- the most idiotic and piss poor business management they could possibly make, I mean how do they expect for people to buy things if they aren't giving people any jobs and they are sending jobs to other countries?... I mean they could relocate some plants to other countries.. but not ALL the plants! ....

Thanks for sharing this with us buddy :).
Posted by Riccardo on
this is so good man, it could apply to a lot of other companies in Europe too.
Posted by Scott Sass... on
Great story
RSS Feed
Add a comment
Uber Members
E-mail
Password
share this