Chapter 8: The Global Plant Floor
Seriously? I’m starting to get annoyed with this book. Perhaps I’m being too critical, but it seems like the authors are just stating the obvious about the state of the world. Something I could figure out by skimming a newspaper. Maybe this book is geared towards those who are out of touch with technology or live under a rock… on an island… far, far away.
First, look at the examples given: Apple, Intel, Boeing, BMW. What do these firms have in common? Oh that’s right, they’re already successful. They’re names are recognized around the world and have been for quite some time.
The key element of this chapter is integrating supply chains into networks. This seems like a logical procession from the development of competitive advantages. I’m good at this, you’re good at that, so together, we can have a great product or be efficient, whatever the case may be. So then the supply chain evolved and now it’s the network. Instead of a typical supply chain,
We get:
Or something like that….
It is interesting that BMW is a prime example. I guess they’re safety standards are at an optimal point already and everyone is aware of that. (?). Also BMW has built up its brand so everyone equates BMW with high quality. In an undergrad management course, I remember the professor telling us that even if GM was 99% accurate in putting together its cars there would still be thousands of safety related problems per year. So it is kind of startling to me to think of BMW’s being put together and just working. Same goes for Boeing. It makes sense though that BMW would choose to concentrate on its marketing, etc. and leave the dirty work to up and coming specialists who are experts in digital engineering. I think the authors try to differentiate this “global collaboration” from outsourcing, but it is one and the same.
The authors also insinuate (not too subtly ) that BMW should open up even further. Yes, it works for Amazon because they sell books (and assorted other products). They don’t sell vehicles which we view as safe little bubbles that transport us from here to there. Book accidents don’t kill people, but car crashes do. Slight difference.
Finally, at the end the authors encourage the readers to ponder the global plant floor + healthcare. I’m just not feeling it.
4 comments:
I agree that the book was very annoying near the end. It would have been better if they gave examples of small companies, which you wouldn't usually think of using supply chains. "The World is Flat" discusses the same issues as this chapter, but does a much better job in my opinion.
I found the whole book annoying; everything was repeated over and over and it seemed to me like the authors were using the same examples over and over to make "different" points. I found it very convenient that most, while not all, of the companies they used to prove success were alrady tech companies or at least had already incorporated tech into their business processes. It seems to me that these were obvious companies to choose to expand into mass collaboration and to make it successful. More examples of non-tech oriented companies would have driven their point home more effectively.
That was my main criticism of the book too...
Although, it is probably somewhat difficult to get inside information on the way companies work when they are not quite as successful as other companies (like amazon, bmw, etc) because they are trying to maintain whatever advantage they have.
I really do not understand how everybody things that BMWs are safer. In reality KIAs faired well in the crash tests better than any other cars, It is hard to believe but it is the truth. I do agree with you on the point that the author sings success about the very prominent companies we already know about.
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