October 12, 2007
Leanness is next to godliness
By Christina Davis
The place to start on the way to leanness isn't necessarily with policies and procedures, according a panel discussion last night at the College of the Holy Cross in Worcester on the latest buzzword to sweep the management world.
Jake Gosa, chairman of American Woodmark, said that leanness comes from a company's mission, which should underpin everything the company undertakes.
"A solid creed will lead you to work on the right things, in the right way," he said.
Gosa was joined on the panel - part of Holy Cross' William J. O'Brien Distinguished Lecture Series - by Jim Davis, chairman of New Balance (and Worcester Academy graduate) and Hajime Ohba, president of TSSC Inc. and Toyota leanness expert. The panel was moderated by Peter Senge, an MIT lecturer.
Davis of New Balance said that his sneaker company makes 25 percent of the product it sells in the United States domestically, which is in stark contrast to rival shoe companies like Reebok and Nike. He said the decision to keep manufacturing domestically was tied to the company's mission.
"We would make more money if we made all our product abroad, but that's just not part of our company culture," he said. Davis also explained that making the sneakers in America under lean principles has allowed for better quality and shorter turnaround times.
"It used to take us several weeks to make a pair of shoes, now it takes us four hours," he said. "We bear all the risk for the retailer, which is a huge sales advantage that our competition doesn't have."
Jake Gosa, chairman of American Woodmark, said that leanness comes from a company's mission, which should underpin everything the company undertakes.
"A solid creed will lead you to work on the right things, in the right way," he said.
Gosa was joined on the panel - part of Holy Cross' William J. O'Brien Distinguished Lecture Series - by Jim Davis, chairman of New Balance (and Worcester Academy graduate) and Hajime Ohba, president of TSSC Inc. and Toyota leanness expert. The panel was moderated by Peter Senge, an MIT lecturer.
Davis of New Balance said that his sneaker company makes 25 percent of the product it sells in the United States domestically, which is in stark contrast to rival shoe companies like Reebok and Nike. He said the decision to keep manufacturing domestically was tied to the company's mission.
"We would make more money if we made all our product abroad, but that's just not part of our company culture," he said. Davis also explained that making the sneakers in America under lean principles has allowed for better quality and shorter turnaround times.
"It used to take us several weeks to make a pair of shoes, now it takes us four hours," he said. "We bear all the risk for the retailer, which is a huge sales advantage that our competition doesn't have."
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