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Gold/Mining/Energy : Gold Price Monitor
GDXJ 121.59+2.2%Dec 26 4:00 PM EST

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To: Jim McMannis who wrote (20729)10/5/1998 5:09:00 PM
From: John Mansfield  Read Replies (2) of 116830
 
OT - 'This was posted on Ed Yourdon's site.

* * * * * * * * * *

I have lived and worked in Japan for 6 years (for one of the world's
largest companies) as an engineer and global business consultant. As
a 45 year old executive with a career built on rational problem
solving, I am faced with an irrational situation that is almost too
horrible to talk about. To understand the Japanese mindset and
interpret the true nuance of the language and culture is somethings
Americans are not good at.

1. 100% of all government surveys and corporate statements are for
saving face and "image" only. This does not mean that they are lies in
the Japanese image of lying. In the western image, they are false
statements. In the Japanese image, they are hopes for the future. To
discuss bad news is culturally equivalent to suicide. You can read the
"whys" of this in the near future from other articles I'll be writing
about the Japanese approach to y2k-only the Japanese would make
a cartoon of a smiley face on a computer screen and call it y2k
awareness. Suffice it to say that effort is being made by major
utilities, telecommunications, international transportation and
international banking to maintain the external image of Japan. The
problem is that Japanese industrial and manufacturing strenght is
based on automated production to minimize direct material costs.
The major manufacturering executives are still in denial and
assesments of automated systems have only started recently -- this
year.

2. As electronic and industrial parts makers to the world, many
Jpanese companies are falsely issuing "no problem" compliance
satements to any customer who asks for component compliance
information. I have personally witnessed a major industrial
automation and control manufacturer give an international customer a
"fully compliant" report on a 7 year old building automation system
without ever testing the system. The Japanese phrase "mondai nai" or
"no problem" is the traditional Japanese business style of answering
any request from a customer. If problems happen later, it is
considered an opportunity to build a better relationship with the
customer by solving the problem together. However, you must never
let the customer worry before the problem happens...I know you
think I am kidding, but I am deadly serious.

So, the resulting problems for global manufacturers using Japanese
electronic parts, components, and relying on JIT (Just in Time)
delivery are going to be in for a global shock when the Japanese
manufacturers are unable to deliver just in time because of the
breakdown of their own networks of vendors who have also failed to
remediate their automated production lines. The volume of PCBs
(Printed Curcuit Boards) delivered to American companies by
Japanese vendors is enormous. These cannot be manufactured by
hand. They will not be delivered on time and it only takes a few days
without parts to stop a complete industry. . . .

Remember, the current Minister of Finance has stated that the first
priority to improve the Japanese economy is to begin clearing the
massive debt. He said the same thing when he was Prime Minister in
1993. Things move very slowly here when action is required, but
many Japanese companies will not make it to the year 2000 because
the global market forces at work now will force the Japanese
economy to implode before then.

The lack of understanding of the importance of the Japanese
economy to the global economy is nothing short of stupidity. . . .
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