Showing posts with label General Motors. Show all posts
Showing posts with label General Motors. Show all posts

4.27.2011

Does Lean Help the Smaller Companies?

I came across this article over on the Bloomberg.com site that details the struggles of Saab (the Swedish carmaker) during the past year to remain in business after its sale to Spyker Cars from General Motors. The situation is quite grim with suppliers halting shipments because of unpaid debts.

A quote from Garel Rhys, president of the automotive industry research center at Cardiff University in Wales, stood out. He states that: "There was a period about 25, 30 years ago when people mistakenly thought that things like lean production would allow the smaller carmakers to survive easily against the bigger companies. Nothing of the sort has happened."

What do you think of this statement? Is this the promise of Lean production? Can successful Lean initiatives alone guarantee survival? I look forward to your comments.