Waste has plagued almost every industrial-age firm for the past
century. In this powerfully argued alternative to conventional cost
management thinking, experts H. Thomas Johnson and Anders Broms
assert that any company can avoid the waste that is generated
through excessive operating costs in the short run and excessive
losses from market instability in the long run. To gain more secure
levels of profitability, management must simply change how it
thinks about work and how it organizes work.
"Profit Beyond Measure" details how two extremely profitable
manufacturers, Toyota and the Swedish truck maker Scania, have
rejected the traditional mechanistic mindset of managing by results
that generates waste. Johnson and BrAms explain how Toyota and
Scania achieve their legendary cost advantage through a
revolutionary concept they call "managing by means" (MBM). Instead
of being driven to meet preconceived accounting targets, the
production systems of Toyota and Scania are governed by the three
precepts that guide all living systems: self-organization,
interdependence, and diversity.
Amid a wealth of new insights into Toyota's vaunted system,
Johnson and Broms introduce the tools of MBM to show how design,
production, and profitability analysis are done to customer order.
They demonstrate that by following the principles that emulate life
systems, even a lean and profitable company can organize work to
greatly lessen its long-term earnings instability and sharply
reduce its short-run operating costs.
Scania has achieved sixty-five years of financial stability and
longevity in the face of fierce competition. Toyota has amassed a
market value since 1988 that has rivaled -- or sometimes surpassed
-- the American "Big Three" automakers combined. The principles
that Johnson and Broms set forth in "Profit Beyond Measure" can
guarantee the same richer, longer life to any company that applies
them.
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