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In chasing the cost reductions made possible with manufacturing offshore many companies open themselves up to precisely the challenges of illustrated in the Napoli case study. The effects of lean production on new initiatives are that it actually stops the cultural integrative aspects of companies in new nations and regions.
Summary
Lean production is a mirage as it states that more can be done with less. The many benefits of lean production come at the expense of longer, more monitored and more stressful hours on workers, and a myopic approach to measuring results. Lean production is often called the elimination of both wasted processes and products from a manufacturing strategy, yet the truth is that lean production is another word for cost reduction in many companies. The need for using an accelerated process management technique, where entire series of business areas are revamped provides an illusion of progress when it fact lean production is being used to trim people, costs, products, channels or divisions. There are those companies that in fact gain competitive advantage from lean production techniques, and these are those companies specifically designed from their origination to run more efficiently than competitors. It is much easier for a smaller organization to adopt lean production and streamline work for their employees rather than impose lean production and make the workers more in automatons that thinking and creative contributors.
The bottom line is that lean production is more often than note used as a means for measuring, quantifying and managing to a level...
It is not a strategy of greater market competitiveness, but one that bases competitiveness on price reductions through major shifts in costs, regardless of the stress or long-term effects on workers.
References
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick. "The Matrix of Change: A Tool for Business Process Reengineering." MIT Sloan School Working Papers available on the Internet, accessed on April 2, 2007:
http://ccs.mit.edu/papers/CCSWP189/ccswp189.html
Alstyne, Marshall van, Erik Brynjolfsson, and Stuart Madnick "Why Not One Big Database? Principles for Data Ownership." Decision Support Systems 15.4 (1995): 267-284.
Porter, Micheal. The Competitive Advantage of Nations. The Free Press. Boston, MA, 1998.
http://www.aicpa.org/info/sarbanes_oxley_summary.htm
Silvio Napoli at Schindler India (a)- Accessible after purchase from the Harvard Business Review Website: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml;jsessionid=3XHOCFKZZ3NGQAKRGWDSELQ?id=303086
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