Does the Regional Myth Still Hold? An Interim Report

Abstract

This paper introduces our ongoing analysis of auto component development data obtained from Nishiguchi's research sponsored by MIT's International Motor Vehicle Program (IMVP). The main results of this paper can be found in the section of Research Results where a regression analysis of auto component development productivity is conducted. There are three major findings: 1. Contrary to the general perception, neither component type nor generally accepted project characteristic governs variations of productivity among auto component projects in our study. 2. Even after correcting for component type and differences in project characteristics, there still remains a strong regional gap in productivity between Japanese and Western samples (North America and Europe). 3. Among Japanese suppliers, a counterintuitive relationship between person hours and unique parts ratio was revealed: There is a tendency that person hours decreases as unique parts ratio increases. This relationship should not occur without continuous accumulation of knowledge on the auto components. Nor is it explained solely by a cross-functional feature of organizations.