When Lean Enterprises Collide: Competing Through Confrontation
When Lean Enterprises Collide reveals a new theory of competition in which lean manufacturers become locked in a head-to-head race to create the most innovative product at the lowest price. These firms engage in a game of constant and lightning-fast leapfrogging in pursuit of transitory gains. This is the confrontation strategy, and it will shape the competitive landscape for lean enterprises.
Cooper shows that the key to success in such an environment is the careful balance of cost, quality, and functionality - the survival triplet - in which cost is the critical element. He describes eight innovative cost management techniques - including target costing and value engineering - that have emerged in Japanese firms to manage costs across the value chain. Leading manufacturers must use aggressive cost management along with TQM and time-to-market to develop products with the appropriate mix of quality, cost, and functionality to satisfy the customer.
Evidence of this relentless confrontation strategy and the hidden role of cost management within it emerged during Cooper's five-year study of the management systems inside twenty Japanese companies, including Olympus, Nissan, Citizen, and Komatsu.
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COMPETING UNDER CONFRONTATION
WHY JAPANESE FIRMS ADOPTED CONFRONTATION STRATEGY
PRODUCT PLANNING AND STRATEGY UNDER CONFRONTATION
SETTING THE STAGE
THE ROLE OF COST MANAGEMENT
CREATING THE RIGHT ORGANIZATIONAL CONTEXT
HARNESSING THE ENTREPRENEURIAL SPIRIT THROUGH MICROPROFIT CENTERS
REAL MICROPROFIT CENTERS
IMPLICATIONS FOR WESTERN MANAGERS
ability achieve allocated allowable analysis brewery bunsha camera changes characteristics compete competitors components confrontation strategy consumer Cooper and Yoshikawa cost centers cost leader cost management systems cost reduction targets create customers determined differentiation efficient ensure example existing products expected factors Figure firm's group leaders Harvard Business School identified improve increase indirect costs industry innovation Isuzu Japanese firms Kamakura Kirin Kirin Brewery Company Komatsu Kyocera labor lean enterprise major manufacturing margin mass producers ment minimum Mitsubishi Kasei Nissan objective Okuno Olympus overhead percent performance pressure price point printed circuit boards product line product plan production process profit centers purchase quality and functionality reduce costs responsible revenues role selling price Shionogi standard suppliers survival triplet survival zones sustainable competitive advantages Taiyo Group target cost target price target-costing system teams Tear-Down techniques tion Topcon ucts value engineering variances Yokohama
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