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Technology Stocks : Compaq
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To: jim kelley who wrote (4765)8/15/1997 2:36:00 PM
From: hpeace   of 97611
 
Jim, I'll answer the question.
Cpq doesn't try for high profit per employee. that's a fruit of
1. Continuous improvement program(TQM)
coupled with JIT and JITII practices, now don't think jit is inventory mangement. it isn't. it's cycle time reduction.
cycle times are everywhere in the compnay.
Cpq also beleives in doing this with futurist systems, leading edge
information technology. That's why they pinoneered ELM hich dell and ibm and hp are just now into.

Then there is re-engineering major processes. this is a real paradigm shift where everything is thown out and new erduced cost processes that are short and higher quality implemented.
And, at first glance a re-engineered process will seem impossible.
If it seems possible then it's not drastic enough to be called re-engineering.
Cpq's new purchases will hurt profit per employee for 1 yr, then it will explode porfit per employee to over 100k/emp
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