The so-called "Japan Inc" identified this as a major problem across Japan.
It gave birth to such solutions as Just-In-Time and Need-a-Part-Make-a-Part and others.
During a tour of an automobile manufacturing plant in Japan the tour guide had difficulty prying me away from a small sub-assembly line that was implementing the above principles.
The concept, of viewing inventory as the enemy, is good to keep in mind because there are many ways it can be adapted to a small business.
During the period when I was developing a healthy respect for street merchants who appear more prevalent in certain cultures around the world. Their operations are usually so simple you can observe their highly developed skill. We often refer to such skills as "street smarts".
Early one morning, near our hotel in Puerto Vallarta, I saw a young boy firing up an hibachi beside a huge bag of corn. Several times throughout the day this boy would have his friends tending the barbecuing of the corn. The bag of corn dwindled in size steadily throughout the day. The young entrepreneur was busy making small figures from some kind of straw. These, too, were selling steadily as his inventory increased.
Around eleven in the evening I passed by, the bag was empty, a few cobs remained on the burning embers and he was counting his money. As I observed him from a short distance trying to calculate his earnings I saw something that shocked me at the time. The vision has vividly remained in my mind for years.
He picked up his inventory of straw figures, walked over to a nearby trash can and trashed them. If they were not the enemy, he decided they were not worth keeping as friends. Whatever the reason it remains a mystery to me. Each time I recall this I seem to draw a different life-lesson. Have you ever had such a life experience?
Let us know by emailing your experience to max@unclemaxsays.com.
© 2004-2006 UncleMaxSays.com
UncleMaxSays.com is a division of Kamloops International College Inc.
Privacy Policy Terms of ServiceSmall Business - Time Management - Business Plans - Business Plan Coaching
