Supply
Chain Development for the Lean Enterprise: Interorganizational Cost
Management
Authors: Robin Cooper, Regine Slagmulder
Product Code: 2180
ISBN: 1-56327-218-0
Publisher: Productivity Press
Published: 1999
Pages: 544
Binding: Hard Cover
Dimensions: 6.25" X 9.25" X 1"
Illustrated: Yes
Pages Description: 162 figures and tables
Price: US $50.00
Four questions determine whether a company is using interorganizational
cost management.
Does your firm set specific cost-reduction objectives
for its suppliers?
Does your firm help its customers and/or suppliers find
ways to achieve their cost-education objectives?
Does your firm take into account the profitability of
its suppliers when negotiating component pricing with them?
Is your firm continuously making its buyer-supplier
interfaces more efficient?
If the answer to any of these questions is "no", your firm
risks introducing products that cost too much or are not competitive.
The full potential of the supply network can be realized only when the
entire supply chain adopts interorganizational cost management practices.
Competitive pressure has led many firms to try to increase
the efficiency of supplier firms through interorganizational cost management
systems, a structured approach to coordinating the activities of firms
in a supplier network to reduce the total costs in the network.
It is particularly important to lean enterprises for
two reasons:
Lean enterprises typically outsource more of the added value of their
products than their mass producer counterparts.
Lean enterprises usually compete more aggressively and
must manage costs more effectively.
Interorganizational cost management can reduce costs in three ways:
through product design, through product manufacture and through cooperative
approaches between buyers and suppliers to build smoother interfaces.
However, more than just cost management must cross interorganizational
boundaries. Suppliers are also a major source of innovation for lean
enterprises. Successful supplier networks encourage every firm in the
network to innovate and compete more aggressively. Read this book to
learn to manage the supply chain to forge competitive advantage while
reducing costs.
Table of Contents
Executive Summary
How Firms Compete Using the Confrontation Strategy
The Role of Cost Management in Confrontation Strategy
The Research Project
Lean Buyer-Supplier Relations
Lean Supplier Networks
An Overview of Interorganizational Cost Management
Target Costing
Interorganizational Implications of Target Costing
Chained Target Costing and Functionality-Price-Quality
Interorganizational Cost Investigations
Concurrent Cost Management
Kaizen Costing
Interorganizational Implications of Kaizen Costing
Increasing the Efficiency of the Buyer-Supplier Interface
Interorganizational Cost Management in Action
Lessons for Adopters
Case Studies
Citizen Watch Company: Cost Reduction for Mature Products
Kamakura Ironworks Company, Ltd
Komatsu, Ltd: Target Costing System
Miyota Company, Ltd
Olympus Optical Company, Ltd: Cost Management for Short-Life Cycle Products
Omachi Olympus Company, Ltd
Tokyo Motors Works, Ltd: Target Costing System
Toyo Radiator Company, Ltd
Yokohama Corporation, Ltd: The Yokohama Production
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