Dr. Edwards Deming pitched his management philosophy to American automakers and was laughed out of their offices. After WW II he took the philosophy to the Japanese auto and tech sectors. Now Japan is light-years ahead of us in auto manufacturing and all other tech sectors except nuclear.

Ford finally sought Deming's help in 1981. The next year the Taurus-Sable line was born, Ford's most profitable line ever. But their winning streak did not last because they reverted from their new-found quality philosophy back to the primitive quantity philosophy to satisfy their short-term greed fix. Even today as the Big 3 are rapidly being phased out they still refuse to incorporate even Deming's most basic principles. Currently, Ford makes more money on parts and service than new car sales... and that's by design.

http://www.deming.org/

I remember Ford's sales pitch: Quality is Job 1. Today in America it seems Cheap is Job 1 everywhere. Quality isn't Job 2 or Job 3, it's not even on the list.


Quote from W. Edwards Deming:
The result of long-term relationships is better and better quality, and lower and lower costs.

Demming said something like "export everything from America... except American management!"

<div class='quotetop'>QUOTE(JimN @ Dec 29 2006, 10:30 PM) [snapback]368467[/snapback]</div>

Actually, the priority is this:

1. Executive salaries
2. Stock prices
3. Thinking up excuses why nobody buys Fords anymore
4. Figuring out how to cut corners on current model cars even more
5. Deciding which U.S. plant to close next
6. Deciding which country where people work for two dollars a day to build plant in next
7. Designing even more macho SUV

You're right, quality is completely off the list.

0. Fighting change.
1. Executive salaries
2. Stock prices
3. Thinking up excuses why nobody buys <insert company name here> anymore
4. Figuring out how to cut corners on current model cars even more
5. Deciding which U.S. plant to close next
6. Deciding which country where people work for two dollars a day to build plant in next
7. Designing even more macho SUV
8. Advertising schemes and tricks to convince people they want what you're willing to build.
9. Repackaging the same old crap and calling it "retro".

I've got 10.

Anyone want to make it 14 to match Demming?

<div class='quotetop'>QUOTE(Godiva @ Dec 30 2006, 04:54 AM) [snapback]368552[/snapback]</div>

Interesting quote.

Sony got an American head. I'm not sure that he is responsible for their decline in product leadership in the video display arena, but Sony is now playing Katsup in a field where they were the leaders. Their LCD TVs lag far behind those of Sharp and others when Sony was once unparalleled. Personally, I think their new line is overpriced and they may have a hard lesson to learn ala Compaq in the computer world a few years back. I think they are now paying the price for their diversion away from innovation and product leadership.

However, I think I recall reading recently that their American head is being phased out. :lol: Smart move on Sony's part if true, IMHO. If true, also, I bet they will never hire another American head unless that person shares the innovative quality and consumer oriented Sony philosophy. Hopefully, for them, they have learned their lesson, and they realize that they are suffering because of what transpired.

The moral of the story I'm sure I don't need to repeat, however -- Hire a chief executive interested in reducing costs and maximizing profits instead of quality, watch the company implode.

[rant]I came out of a big company that I won't name, and I saw exactly the same sort of thing happening there as is happening at GM, Ford, and others. Innovation is a four letter word in such companies. The saddest thing that I see is that at the company where I was, innovation is what made the company, but current corporate leadership has completely forgotten that fact. At least part of their philosophy is based on the idea that what you need to make your product succeed will magically appear in the marketplace exactly when you need it and, therefore, you can buy it off the shelf for a price that you want to pay. Personally, I don't understand why management is incapable of seeing that this strategy does not work. I also saw a pervasive attitude that brand reputation was enough to carry the company. What seemed to be lacking was the hard realization that the company's products and how they treat their employees form the brand reputation.[/rant]

All the best,
Matthew

Toyotas time for plateauing and possible decline is coming soon. I know you will all laugh right now, but it will be interesting what you think a year from now.

<div class='quotetop'>QUOTE(Wiyosaya @ Dec 30 2006, 05:31 PM) [snapback]368719[/snapback]</div>

I won't dispute Sony quality but the reason I've chosen other brands is proprietary design and aesthetics.

I looked at a Sony VCR once and hated the little wheel on the remote. I can see how some might like to drive or race their VCRs, I just found it intensely annoying. I also didn't buy a camera or videorecorder because of the proprietary 'stick' memory card.

I completely lost what little respect I had left for Sony last year, when for "copy protection" they put a nasty program on several of their CDs that would install a rootkit, which meant that any cracker could break into your computer and do whatever they wanted with it. First they denied putting it there, then they tried to justify it, then they finally put out a patch for it. Of course, the patch was even nastier than the original program! Fortunately, third parties came out with REAL patches for the original rootkit and the "Sony patch".


As for Toyotas, my brother says Toyota is getting TOO big, and a drop in quality, while it's not there now, is inevitable.

<div class='quotetop'>QUOTE(Godiva @ Dec 30 2006, 01:32 PM) [snapback]368656[/snapback]</div>

The Big 3 philosophy: Every employee is a thief and every customer is an idiot. The Big 3 relied too long on the notion that consumers thought it is anti-American to buy a foreign car. Well, the consumers who thought that are now either too old to drive or dead from being catapulted out of a Lumina or an SUV rollover. I walk around my neighborhood and see 80-90% cars from a Japanese manufacturer, sometimes 4 or 5 Toyotas to a single family. Walking down a row of cars at my local mall I see more than 2/3 Japanese. Big 3 just doesn't get it, and sadly, it is too late for them to get it now.

<div class='quotetop'>QUOTE(malorn @ Dec 30 2006, 05:11 PM) [snapback]368735[/snapback]</div>

As more Toyotas are built in the U.S. I think we will see a slight quality decline in the years to come but never close to the mediocrity of the Big 3. Toyota will endeavor to keep their market share and reputation because Subaru is catching up with them (and Honda) at a rapid pace. Nissan, Mitsubishi and Isuzu have already slipped too far to the dark side to ever become a serious threat. Mazda has become so infected with Ford parts that they are now inbred Frankensteinmobiles. And Jaguar, one of the most unreliable cars in the world since its inception, is now even more unreliable under Ford's influence. Toyota and Honda will remain neck-to-neck leaders for at least a couple of decades... healthy competition that will benefit us.

<div class='quotetop'>QUOTE(Wiyosaya @ Dec 30 2006, 06:31 PM) [snapback]368719[/snapback]</div>

Yeah, that wouldn't have anything to do with Sony basically sitting on the same idea for the last 20 years (we love the walkman, who wants an iPod?) or trying to sell consumers crap they don't want... (8mm camcorders? no wonder they didn't sell). Or their wonderfully overpriced Viao computers. The list of Sony failures is longer than I have time to type out.

Sony has lost out to both American and Japanese consumer electronic companies because they became complacent. That said I love my Wega television. But the progressive scan DVD player hooked up to it.. Philips. The home stereo... not sony. The VCR? Nah, got a Tivo. Does Sony actually make a DVR? Affordable DVD players?

The only 'success' Sony has had has been.. well, the Playstation. And look what's happened to the PS3.

the big threes new pitch is

"do anything, promise anything to get them in the door, then sell em, kick em out, and move so they cant find you."


that part where Toyota is #1 in consumer loyalty IN ANY INDUSTRY is priceless and they are where every company in the world wants to be.