2008
Management Quality and CompetitivenessLessons from the Industrial Excellence AwardAuthors:

• Professor Christoph H. Loch,
• Professor Stephen E. Chick,
• Professor Arnd Huchzermeier
• …show all 3hide
  

ISBN: 978-3-540-79183-6 (Print) 978-3-540-79184-3  (Online)



Lessons from the Industrial Excellence Award

Loch, Christoph H., Chick, Stephen, Huchzermeier, Arnd

2008, XI, 156 p.

ISBN 978-3-540-79184-3

  Immediately available per PDF-download (no DRM, watermarked)

About this book

• Showcases examples of excellent industrial management in Western Europe
•                                         Offers lessons in strategy and execution for industrial managers
  

This book showcases examples of excellent manufacturing companies who have succeeded in creating value and job growth in Western Europe. The examples show managers of industrial firms how a clearly articulated strategic position can be combined with excellent execution to achieve competitiveness in Europe, in spite of the usually cited disadvantage of high labor costs and rigidity. Not every company is alike — strategic positions differ, and the means of execution differ, but what is common is a clear plan together with mobilization of all employees to apply their abilities in supporting this common plan. The book is indispensable reading for all managers that are interested in improving competitiveness.

Contents
Part I: The Challenge
1 Management Quality and Strategic Positioning 3
1.1 The Challenge 3
1.2 Management Quality 7
1.3 Evidence for the Value of Management Quality 12
1.4 Strategy and Competitive Positioning 15
1.5 What Management Can Do 18
1.6 The Organization of this Book 20
Part II: Management Quality, Innovation, and Services
2 Rational: Innovation and Game-Changing Products 25
2.1 The Rational Way 25
2.1.1 Anyone Can Cook 25
2.1.2 Success to Date 28
2.2 The Strategy 28
2.2.1 Knowing the Core Competence 28
2.2.2 Reaching the Customer 29
2.2.3 Building the Product 30
2.3 Leadership 32
2.4 Partners and Services 35
2.5 The Way Ahead 35
3 Imaje: From Products to Services Through Innovation 37
3.1 Transformation Through Customer Oriented Services 37
3.1.1 The Marking Business 37
3.1.2 A Strategic Reorientation 38
3.2 Portrait of Imaje 41
3.3 The Company’s Development Since 2002 43
3.4 2007 and Beyond 46
4 BuS: We Do What No One Else Does 49
4.1 Introduction 49
4.2 The Business of BuS 50
4.2.1 The Target Market 50
4.2.2 Successes 52
4.3 Business Strategy 53
4.4 Production Challenges 54
4.5 Uniqueness as a Source of Success 57
X Contents
Part III: Networked Strategy
5 61
5.1 Introduction 61
5.2 Background 62
5.3 New Thinking 63
5.4 Charisma, Culture Change and Team Building 65
5.5 Innovations in Every Field and Every Day 66
5.6 68
5.7 And the Future? 71
6 Hewlett Packard Herrenberg: Partnership Solutions 73
6.1 Introduction 73
6.2 The Velocity Factory Concept 75
6.3 The Way Ahead: The Solution Factory Concept 76
6.4 HP Partner Park: A Business Network Concept 79
6.4.1 Why Further Change?
6.4.2 The Partner Park Idea
6.4.3 Partner Park Results and Benefits
6.5 Management Implications 82
7 Fujitsu Siemens Computers: Outsourcing and Supply Chain Mastery 85
7.1 Introduction 85
7.2 How Do They Do It? By Never Standing Still 87
7.2.1 Strategy 88
7.2.2 Customer Orientation 88
7.2.3 Outsourcing and Partnerships 90
7.2.4 Iron-Fisted Cost and Process Discipline 91
7.2.5 Employee Mobilization 93
7.3 Still Getting Better? 94
7.3.1 New Segments and Markets 95
7.3.2 Keep Running to Succeed 95
8 97
8.1 History of a Turnaround 97
8.1.1 The Product and the Process 98
8.1.2 Early Changes 98
8.2 Development after 2002: Growing and Creating Jobs 102
8.2.1 Operational Improvements 102
8.2.2 Personnel Policies 103
8.2.3 External and Customer Relationships 104
8.2.4 Expansion of Activities 105
8.3 Lessons 107
79
82
80
Innovation Supported by Off-Shoring and In-Shoring
RDME: Re-Importing Jobs from Brazil
VARTA Microbattery: Producing at the Right Place
Contents XI
Part IV: What Does this Mean? Implications of the
Industrial Excellence Examples
9 Offshoring and Jobs: Zyme, Dyson, and Some General Lessons 111
9.1 Zyme Solutions 111
9.1.1 The Customer Problem 111
9.1.2 The Front End 113
9.1.3 The Back End: The Outsourced Bangalore Center 115
9.1.4 Zyme’s Own Bangalore Center 116
9.1.5 Impact on the Customer Organizations 117
9.1.6 Next Steps for Zyme 119
9.2 James Dyson and the Philosopher’s Stone 119
9.3 The “Does Off-Shoring Destroy Jobs?” Debate 121
9.3.1 The Evidence 121
9.3.2 Implications for Companies and Policy Makers 126
10 Accountability for Competitiveness, Collaboration for Jobs 129
10.1 The Responsibility of Management 129
10.1.1 Responsibility for Competitiveness and the Market
for Management 129
10.1.2 Firms’ Contribution to Society: Spillovers 132
10.2 The Contribution of Governments and Unions 134
10.2.1 The Government’s Responsibility for Product
and Labor Markets 134
10.2.2 The Government’s Responsibility for the Creation
of New Firms 136
10.2.3 The Government’s Responsibility for the Education
System 138
10.2.4 The Responsibility of Unions 139
10.3 The Misguided Dialogue and the Public Debate 141
10.4 Improving the Public Debate 144
References 147
About the Authors 149
Index 151