Proponents of “Lean” manufacturing remind us time and again that chasing cheap labor is a stupid strategy. The hidden costs of quality problems, of training new staff with a high turnover, of large batches and long lead times that make you very inflexible, of capital tied up in long supply chains are often bigger than the perceived labor savings.
TXM in Australia has
made the comparison between local lean sourcing and outsourcing to China with realistic data. The results confirm what everybody has been saying: lean local is cheaper.
About Herman
Herman Wagter is one of the founders and co-editor of Dadamotive. His work as interim manager and consultant (Citynet Amsterdam/Fiber-to-the-Home, Platform Sustainable Mobility) has involved him directly in the impact of hyperconnectivity and sustainability on society. As an independent agent and "mobile warrior" he has experienced the pro's and con's of how organizations and projects can be structured, and what the effects on the final result can be. In his opinion we are entering an era of profound change, driven by these fundamental forces. Following the trends, discovering the fun and debunking the half-truths is a passion he likes to share with others.
