By Sally Klingel, Ann M. Martin
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Additional resources for A Fighting Chance: New Strategies to Save Jobs and Reduce Costs
The annual savings represented approximately 13 percent of the operating budget for the Harrison distribution center. Furthermore, outsourcing would make room for other needs at Harrison: light assembly, office space, and room for the engineering staff, who would be homeless once an older Harrison facility in downtown Lockport was closed, according to plan. 2 million in the first year, and create needed space for consolidation. On the other hand, although they did not say so at the time, the managers said later that their preference was to make the in-house operation more efficient and keep the work.
The Xerox and the ACTWU 27 vendor's bid appeared to be artificially low, however, and to lack the costs associated with bringing its product up to CMO quality; thus one of the team's major projects became computing the cost of quality. Likewise, the vendor could not provide just-in-time delivery to assembly plants in Webster; hence, the team set out to identify the costs incurred in warehousing and distributing parts from Mexico. Like the previous teams, the second wire harness team worked closely with its two internal advisers and with the steering committee.
The CSTs have shown that Xerox departments can manufacture similar, if not better, products internally, with higher quality and more efficient delivery. Despite the risks, CSTs, and other forms of employee involvement at Xerox, have resulted in substantial gains for workers. Bargaining unit employment has been rising since 1985, increasing by approximately 23 percent as of July 1988. For the CSTs to be successful, however, there must be a solid ongoing commitment from management and trust between the two parties.
A Fighting Chance: New Strategies to Save Jobs and Reduce Costs by Sally Klingel, Ann M. Martin