GERPISA International steering committee March 21-22, 2003 Paris

GERPISA International steering committee March 21-22, 2003 Paris

GERPISA Eleventh International Colloquium June 11-13, 2003 Paris The Origins and the Limits of the Productive Models Diversity Research questions and research organization problems Michel Freyssenet Freyssenet M., The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour lexpos oral, Onzime Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de la Recherche, 1. Some results of GERPISA works - an accumulation of social sciences works that dont exist in any other industrial sector - a change of paradigm: limited and renewed diversity - a new research question: the origin and limits of productive models diversity , The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives po Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree Paris. dition numrique, freyssenet.com, 2006, Ko. The paradigm of the " limited and renewed diversity " The observed differences of shape and contents could not be interpreted as variants of an universal and irreversible general tendency. They should be analyzed as elements of different configurations. The new paradigm allows us to integrate much more facts, than the other paradigms The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pou encontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko. Many GERPISAs members intellectually admit the new paradigm, but very few implement it in their researches Three reasons 1. the auto-makers continue to speak about just in time, teamwork, costs reduction, etc 2. passing from a reasoning by tendencies to a reasoning by differences is not simple

3. the debate within GERPISA about he Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour ncontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de umrique, freyssenet.com, 2006, Ko. The two first methodological obstacles to implement the paradigm of the " limited and renewed diversity " would gradually be surmounted It remains an important debate between us e Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour l contre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de mrique, freyssenet.com, 2006, Ko. The diversity origin debate At least four positions appear in the GERPISA members texts: * national context (Ulrich Jurgens,.) * several universal product strategies (Takahiro Fujimoto, Mari Sako, ) * diversity limited by universal constraints and technology (Giuseppe Volpato,) * permissible profit strategies in each type of growth mode (Robert Boyer/Michel Freyssenet, .) The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pou encontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko. 2. Have GERPISA members to overcome this debate collectively? - Why to persue the analyze of the conditions and means of firms longevity? -The illusions of the lonely work and its dangers for the research and the researchers - For the first time, the players of the auto-industry are not called to adopt one best way he Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour ncontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de umrique, freyssenet.com, 2006, Ko. 3. The implementation of the limited and renewed diversity paradigm - Under apparently general trends, the diversity of stakes and trajectories - A descriptive, historic and analytical approach The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives po Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree Paris. dition numrique, freyssenet.com, 2006, Ko.

Definition of productive models Productive models can be defined as company governance compromises enabling a durable implementation of those profit strategies that are viable for the growth mode frameworks of the countries in which a firm is prganising its activities thanks to a series of means (product policy, productive organisation and employment relationship) that are coherent and acceptable to the people involved he Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour ncontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de umrique, freyssenet.com, 2006, Ko. THE PRODUCTIVE MODEL in its environment international regime growth mode of the national income market labour profit strategy product policy company governance compromise productive organisation employment relationship GERPISA, Robert Boyer, Michel Freyssenet The plurality of productive models is predicated first of all on a differentiation between growth modes then on a selection of profit strategy finally on adoption or invention of means that are coherent for implementing this strategy and acceptable to the main players of the firm he Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour ncontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de umrique, freyssenet.com, 2006, Ko.

The two main conditions of a firms profitability and a means acceptability The relevancy of the profit strategy to the growth modes of the countries in which the firm is operationg The solidity of the company governance compromise that enables the firms players to discover and to implement those means (product policy, productive organisation and employment relationships) that are both coherent with the profit strategy that has been adopted and also acceptable to them, in other words, the ability to invent or to adopt a productive model The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives po Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko. The principal growth modes modes national income distribution competitive and competed competitive and consumer-oriented - depends on local and category-specific balance of power and on financial opportunism co-ordinated and specialised exportoriented co-ordinated and price export-oriented inegalitarian and rent-oriented - consumption-driven - driven by export of competitive standard products competitive and price export-oriented co-ordinated and consumer-oriented growth - variable depending on firms domestic and external competitiveness

- nationally co-ordinated, moderately hierarchised, geared to productivity - consumption-driven - driven by export of specialised goods or services - nationally co-ordinated, moderately hierarchised, geared to export competitiveness - structurally inegalitarian - vote-catching - driven by export of competitive mundane products market - balkanised - unstable - some categories are excluded - heterogeneous - variable - heterogeneous - unstable - some categories are excluded - mass-oriented - moderately hierarchised - foreseesable - mass-oriented - moderately hierarchised - significant topof-the-range - mass-oriented - moderately hierarchised - foreseeable labour dynamics contradiction - flexible - organises itself on a professional basis - flexible - organises itself into branch-wide labour unions - abundant

- poorly organised - drop in real prices - limited market due to uncertainty of income - seeks to defend situation that has been acquired - speculative practices - broadening of market - stimulation of investment - lack of a virtuous circle leading to mass consumption - rapid industrialisation - domestic market is limited, lack of a virtuous circle - organised into unions - makes demands - total population can access mass consumption - needs to find new economies of scale once market is saturated - organised into unions - cooperative - stable - total population can - risk of getting boxed access mass consumption into one specialisation, high wages work in likely to become obsolete favour of quality products - organised into unions - cooperative - stable - total population can access mass consumption - other countries reactions, - rise in wages and in exchange rate - enriched on a period-toperiod basis

- industrialisation process runs into significant hurdles - erratic, depends on world - categories of - flexible prices for raw goods and owners, executives - poorly organised agricultural products and dependents - dependent - sudden contraction or expansion shortage and investmentsoriented - relatively egalitarian for - depends on savings rate most of the population - very limited - administered - foreseeable - mobilised - ensures full - cannot perpetuate itself employment, creates solid indefinitely industrial bases Freyssenet M., The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pour lexpos oral, Onzime Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree de la Recherche, Paris. dition Profit strategies, pre-conditions and requirements Profit strategy Diversity nd lexibility Quality Volume Characteristics Profit margins based on - products that specifically respond to distinct types of demand - rapid adjustment of costs to variations in demand Profit margins based on - products socially considered to be top-of-the-range or luxury goods - commercial distribution is international from the beginning

- Economies of scale through production of increasing quantities of standard model Conditions of relevancy Implementation requirements Market Labour - heterogeneous, even - autonomous, balkanised flexible and mobile - from variable to workforce unstable - well-to-do and affluent clientele - international Product policy - models with few parts in common - targeting different customer categories - price that is most lucrative - skilled, working - offering models that under constraint of express the social and having to maintain economic position of specialisation on a well-to-do and international markets affluent clientele of national production - abundant, unskilled - offering a product and unionised that satisfies basic workforce individual transport needs - offering superficially - polyvalent and unionised workforce different models with - homogeneous - rising -national, then international Volume and - Combination of economies - moderately iversity of scale for non-visible hierarchised, with shared platforms elements and economies of transition from one -excluding niche scope for visible elements

segment to another vehicles, at the very over product life bottom and top-of- national then range international nnovation - Profit margins based on - partially rejuvenated - entrepreneurial and -offering when needed nd innovative models that are a by the periodically opportunistic conceptually lexibility response to new expectations emerging practical employees innovative models -Innovation rent exploited and symbolic that correspond to through saturation of poten- expectations of new expectations of those tial demand before it is copied sections within the the durable new -Losses limited through rapid general population sections of the reconversion in case of failure population ermanent -Constant volumes, costs cut - moderately - semi-skilled and - strict volume, eduction in in all circumstances hierarchised unionised employees diversity and quality osts -Other profit sources are - emphasis on price, - operating under of product offer exploited as long as they do reliability and raising external -avoid having to not undermine the costcutting level of basic competitiveness innovate -Makes it possible to avoid equipment constraint conceptually taking technical, social, commercial and financial risks Boyer, R., Freyssenet, M, GERPISA, 2000 Company governance Productive org. Employment relation compomise - design new models - remuneration of -to be developed by rapidly and for lowest competency and shareholders seeking cost flexibility

remuneration, em-production changed -incentives so work is ployees and suppliers whenever necessary carried out within who ought to be competitive timeframe flexible and efficient -guaranteeing quality -maintaining the rare -developed by owners concerned with the of supplies, competencies that maintaining quality guarantee quality and brand, by wageearning professionals and by throughout prestige suppliers responsible production process -emphasis on -ability to sell professionalism and for quality prestige factor on good work - standardisation and -get people to accept -to be developed fluidification of undifferentiated work primarily by production and repetition of executives together identical acts with most employees -control the -achieve polyvalency -mainly developed by complexification -offering of managers together variety creates in all moderately with growing domains hierarchised wages number of engineers -avoid simultaneous -guarantee career and technicians, and overcapacities or development with labour unions undercapacities opportunities -generate ability to -emphasis on -become financially innovate in a innovation, expertise autonomous so as to commercially and responsiveness be able to assume the relevant manner necessary risks -develop highly -pact between responsive executives, innovaorganisation in all tors and responsive

areas employees -mainly developed by -avoid major -get employees to variations in accept cost-cutting as executives, employees production well as its effects on and suppliers -ensure that this is -design a productive jobs and on work politically acceptable organisation that can in light of the be improved on a stringent competitive step-by-step basis capacities Productive models Models Profit strategy being implemented Company governance compromise Taylorian Diversity and flexibility "High wages, inexpensive workforce" scientific methods Woollardian Diversity and flexibility Autonomy and collective skills, flexibility, capital is well remunerated Fordian Volume Access to mass consumption vs. acceptance of productive organisation Sloanian Volume and diversity

Rising purchasing power vs. rising productivity Toyotian Permanent reduction of costs at constant volumes Innovation and flexibility Longevity for firm and for employees and suppliers jobs Hondian Self-funded, individual promotion vs. responsiveness and initiative Components of the model Product policy Productive Employment organisation relationship Specific products, Standard procedures and Task-based wages, varied product offer, allocated times, augmented by 30 to medium-sized series flexibility of 100% if procedures equipment and followed and deadlines stationary individual met workstations Specific products, Workshops for each Autonomous teams, varied product offer, product or subsystem, Incentivising small & medium-sized mechanisation and piecework wages series, lucrative price synchronisation of negotiated on a teamsupplies by-team basis Standard single produit, Production is Rising fixed wages, drop in real prices integrated, continuous, egalitarian, vs.

mechanised, timed and parcellised and broken down into repetitive work elementary operations Hierarchised product Strategic centralisation Wages depend on job range, shared and operational being done, platforms, superficial decentralisation, tools polyvalency vs. diversity, many are polyvalent and acceptance of the options subonctracting organisation Well-equipped basic Polyvalent work team, Employment and career models, good quality Just-in-Time guarantee vs. collective that is perceptible to inside and outside of participation in the client firm reduction of standard times Conceptually Lines, machines and Hiring, wages and innovative and specific personnel can be promotions depend on models, anticipation of quickly converted initiative, expertise and customer expectations responsiveness Boyer, R., Freyssenet, M, GERPISA Dynamics Risks Contradictions Conditional increases in productivity Establishment of a dual management structure in the firm Rapid saturation of market, emergence of labour unions making demands Management structure is weighed down, excessive diversity, cannibalisation of products Limits of social and political acceptability, severe competition in

certain situations Loss of innovation rent because product is copied rapidly, loss of autonomy Links between growth modes, profit strategies and productive models Growth modes of national income Forms of Distribution Main Sources shortage investments oriented co-ordinated consumeroriented competitive specialized export oriented price export oriented consumeroriented export oriented inegalitarian competed rent oriented Profit Strategies volume and diversiy volume Innovation and flexibility permanen t cost reduction s quality

diversity and flexibility Productive Models ? Fordian ? Sloanian ? Hondian ? ? ? Toyotian Woola rdian Taylorian The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pou encontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko. Compatibilit entre les stratgies de profit des firmes et certaines des "tendances actuelles" dans l'industrie automobile Stratgies de Offrir tous les profit types de vhicules qualit Non, seulemnt dans la partie suprieure. des segments de la gamme classique diversit et flexibilit volume volume et diversit rduction permanente des cots Mise en commun Externalisation des plates-formes

innovation Non, seulement et flexibilit les modles conceptuellement innovants Conserver les savoir-faire qui font l'image de "qualit sociale" du produit Moteur propre, voiture recyclabl. et silencieuse. Oui, mais pas avant solution fiable et durable Internationalisation Indispensable, mais commercialemt seulement, production dans le pays d'origine Oui, possible, Non, la demande Oui, pour Oui, possible Oui, pour Pas ncessaire, mais pas est trop disposer de la pour certaines certaines possible dans les indispensable "balkanise" flexibilit clientles clientles pays ncessaire distribution concurrentielle du revenu Non, seulemnt Non, modle Non, ncessit Non, diversit Oui quand Indispensable, si dans les grands standard, et d'un flux continu insuffisante synthse possible march national segments de "intgre" des innovations satur, vers pays march et abaissement

distrib; coord. rapide du prix et galitaire Non, seulemnt Indispensable, la oui, mais en Oui, sous forme Non, mais copier Indispensable, si modles dont les diversit est de gardant le de sous-ensembles trs vite si march national plateformes "surface" contrle des pour l'instant, et demande satur, vers pays peuvent tre volumes et des si condition suffisante et co. distrib. coord. mises en prix d'externalisation d'chelle et modrment commun remplie possibles hirarchise Non, seulemnt les modles dont la demande est relativement prvisible Non, obligation de "distinction", y compris dans le non-visible Produit et production modulaires Non, ncessit commerciale d'un produit trs intgr Oui, si la demande est modrment hirarchise Oui, mais en gardant le con trle technique, et si mme stratgie de profit et mme modle prod. Difficile, quand il s'agit de rpondre des attentes

nouvelles Indispensable, pour produire rapidt en masse si succs, ou pour retirer un modle si chec Fusionacquisitionalliance Incompatibilit avec les firmes ayant tout autre stratgie de profit Dveloppement des services aux clients Oui, fait partie du service trs personnalise indispensable Appel aux marchs financiers Possible, si investisseurs cherchant la suret Possible avec firme ayant la mme stratgie mais pas indispensabl,e Oui, si condition de captation de certaines clientles Oui, possibilit de rmunration leve mais variable Trs profitable si Service standard, possibilit minimum d'adopter les indispensable mmes modles Vitale lorsque le march est durablement de renouvellement obligation de plates-formes communes

Oui, avec Non, mais copier Trs profitable si Dconseille, prudence, sous trs vite si possible vers difficult forme de sousdevient la pays demande trouver une firme ensembles, et si nouvelle norme prvisible et taux ayant la mme condition de change stable, stratgie d'externalisation mais pas remplie indispensable Oui, mais Oui, chaque Pas ncessaire si Pas ncessaire, seulement pour tape localise dans une possible avec certains modles d'innovation rgion distrib. firme de mme innovants concurrentielle, stratgie indispensable si ailleurs Boyer, R., Freyssenet, M, GERPISA Non, rsistance l'abaissement des prix en cas de forte de demande Oui, lorsque les conomies d'chelle ne peuvent plus tre faites sur le produit matriel Oui, si rmunration stable des capitaux Oui, pour fidliser la clientle Non, trop coteux, autofinancement Non, sauf si Non, indispens constitutif du d'tre indpendt concept innovant financirement 4. Some false and true problems

of RB/MF analytical framework 1.mis-understandings 2.the pressure of the international regime 3.the national institutions and compromises 4.the common productive paradigms 5.the historical periods 6.and some others problems The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives pou encontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko. 5. Some ways to solve the previous problems 1. the contradictions of the international regime 2. the flexibility of national institutions 3. productive paradigms and productive models 4. the phases of the division of labour The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives po Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko. 6. What can we do? 1.to try to interrogate our inquiry materials from the point of view of a possible diversity, rather only from the point of view of a necessary or inevitable postulated convergence 2.launching with the support of EU a new international program to analyse the links between international regime, national institutions and The Origins and the Limits of the Productive Models Diversity. Research questions and research organization problems, Diapositives po Rencontre Internationale du GERPISA, "Les acteurs de lentreprise la recherche de nouveaux compromis ?", 11-13 juin 2003, Ministree numrique, freyssenet.com, 2006, Ko.

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