p.1 #1 · Nikon lays off 1,500 subcontracting staff
Nikon lays off 1,500 subcontracting staff after a slump in orders due to the global financial crisis. It seems that Crisis hits also Camera core. The link is here
p.1 #4 · Nikon lays off 1,500 subcontracting staff
this is production staff...they are just reducing production capacity. Those people are subcontractors and usually are trained on the job. No issue around quality to be expected to me. This is what many companies are doing, laying off subcontractors, the cheapest way to reduce costs, and your knowledgeable workforce stays in place.
The only problem is that if every single company is doing this, the economy will enter an even faster and more negative spiral...
p.1 #5 · Nikon lays off 1,500 subcontracting staff
gugs wrote:
this is production staff...they are just reducing production capacity. Those people are subcontractors and usually are trained on the job. No issue around quality to be expected to me. This is what many companies are doing, laying off subcontractors, the cheapest way to reduce costs, and your knowledgeable workforce stays in place.
The only problem is that if every single company is doing this, the economy will enter an even faster and more negative spiral...
Guy
Well its not so simple while companies cannot make any prediction about how many products in quantity has to make so if for some reason market asks for a short period of time great amount of some products the Company is very difficult to train new people to prepare them for the production line and its sure that they will use the reduced workers for making increased production in the same aount of time... Goodbue quality products ... On the other hand unfortunately Computers -Cars - Electronics will have a great impact from that crisis
p.1 #7 · Nikon lays off 1,500 subcontracting staff
This probably has somehting to do with several of the retail companies still owing Nikon money...and not being able to pay it....
Circuit City owes over 14 Million to Nikon before it went into bankruptcy and who knows what other retailers are doing as of right now....sales seem down...and everyone is looking for Black-Friday to bring them back....I do not think a lot of retailers are going to hit their mark this year....but only time will tell...
p.1 #9 · Nikon lays off 1,500 subcontracting staff
James R wrote:
I fear reductions in quality control and R&D.
I disagree. Reducing production has absolutely nothing to do with QC...in addition..most quality problems are engineered into the product (i.e. Canon's shutter box) not line problems.
Nikon would have to be idiotic to reduce R&D at this point.
This article was about Nikon, but you need to remember, all manufacturing companies are doing this, not just Nikon.
p.1 #11 · Nikon lays off 1,500 subcontracting staff
tc95 wrote:
This probably has somehting to do with several of the retail companies still owing Nikon money...and not being able to pay it....
Circuit City owes over 14 Million to Nikon before it went into bankruptcy and who knows what other retailers are doing as of right now....sales seem down...and everyone is looking for Black-Tuesday to bring them back....I do not think a lot of retailers are going to hit their mark this year....but only time will tell...
p.1 #12 · Nikon lays off 1,500 subcontracting staff
rhyder wrote:
I disagree. Reducing production has absolutely nothing to do with QC...in addition..most quality problems are engineered into the product (i.e. Canon's shutter box) not line problems.
Nikon would have to be idiotic to reduce R&D at this point.
This article was about Nikon, but you need to remember, all manufacturing companies are doing this, not just Nikon.
Rhyder,
There is a world wide economic downturn. Companies are cutting jobs and cutting costs. Historically, R&D funding takes a big hit during a recession. Some companies develop QC problems due to staffing cuts and using less expensive components--trying to keep their bottom line out of the red. Marketing directs resources to those more profitable consumer products. In turn, reducing its commitment to the less profitable professional line. I tend to doubt Canon will increase its QC or R&D funds at this time, even though they have had big problems with their 1D3 and 50D. The fundamental issues that created these problems requires more money, not less. For their sake, I hope the 5DII is clean.
I'm not saying this will happen to Nikon, but, I am concerned. All camera makers have the same problem and will need to rework their business plans as this recession strengthens.
Recessions generally run 21 months in the US, and longer in other countries. Couple the bad economy with a bad print market and reductions in advertising dollars and you get a bad environment for the sale of high end photographic gear.
p.1 #13 · Nikon lays off 1,500 subcontracting staff
BenV wrote:
black-tuesday? never heard of that! lol
i wonder if BH will have any crazy sales.. (on black friday of course)
October 29, 1929, Black Tuesday, is thought to mark the beginning of the Great Depression.
I tried to order a 24 PC-E from B&H yesterday, but it was out of stock. So I bought one from Roberts Camera, who has been in business since 1957. Their price was about $80 less than B&H. B&H will need some crazy sales to get me back as a customer, unless the lens doesn't arrive on Tuesday.
p.1 #14 · Nikon lays off 1,500 subcontracting staff
dvarnav wrote:
Well its not so simple while companies cannot make any prediction about how many products in quantity has to make so if for some reason market asks for a short period of time great amount of some products the Company is very difficult to train new people to prepare them for the production line and its sure that they will use the reduced workers for making increased production in the same aount of time... Goodbue quality products ... On the other hand unfortunately Computers -Cars - Electronics will have a great impact from that crisis
My experience is somewhat different. Since we're just discussing somewhat theory, I'll try to explain, so bare with me.
The production of cycle is generally fixed. When things get busy. Yo might open another line, you'll have to employ people for the line, but you also have to employ truck drivers, more box packers, etc. You close a production line, you get rid of the assemblers, testers, box packers, assistants , extra truck drivers of that line.
I'll give an opposing view. Let's say you have one line, and reduce some staff because production drops. That might mean that one staff member might now have more time and so can do two tasks rather than just one.
The production and time it takes to make the product, the testing etc is still the same. You don't necessarily have to slave drive your workers.
My personal view is that the busier you are, the more you are asked to do. Testing time shortens, QC suffers. So my view is that the more mass produced the product, the less QC you have.
Anyway, these are generalizations. Just trying to show that there are other ways to consider things.
p.1 #15 · Nikon lays off 1,500 subcontracting staff
dvarnav wrote:
Well its not so simple while companies cannot make any prediction about how many products in quantity has to make so if for some reason market asks for a short period of time great amount of some products the Company is very difficult to train new people to prepare them for the production line and its sure that they will use the reduced workers for making increased production in the same aount of time... Goodbue quality products ... On the other hand unfortunately Computers -Cars - Electronics will have a great impact from that crisis
Your argument is based on a simple idea, which is unfortunately false and makes all your conclusions wrong. That simple-but-wrong idea is found in the phrase "...its sure that they will use the reduced workers for making increased production in the same aount of time...".
That is not a sure thing... far from it! It is only one of the many ways in which they could attack the problem of unexpectedly high demand. Another is simply to make people wait in line until their products are actually produced. Airplane manufacturers do this all the time, and it's normal to get a delivery date 2-to-4 years out when you buy a new plane if the economy's on an up-cycle. And I think that anyone who's spent weeks or months looking for Nikon long teles will tell you that they are not hurrying production because they know that demand is cyclical.
Yes, companies could reduce quality to speed up production. But it's not at all certain, or even highly-probable, that they will actually do so. And you cannot know what they will do.
So cheer up... your doom-and-gloom premise is wrong. And that's one theory where you ought to be glad to be wrong, right?
