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8 > Image 8 of Kentucky Alumnus, 1989, no. 4

Part of Kentucky alumnus

E2??iiE{EE?5?E?EZEEEESE2EEEE? __;;:;;;:;1;:;:;:;1;1;:;:;:;Z;Z;Z;Z;2;Z;Z;Z;Z .;Z;1;2;Z;!;Z;Z:Z;Q:Q:::fi :;Z; r:1:1:1::zi:2:2:22222:2=2=2=2=2;2 2;; region and the state of Kentucky. At the l`niver- tion collected supplier industry. This lack of A sity of Kentucky. a study was funded through QE; information was also considered a problem by 4 ` the office of Art Gallaher. then chancellor of the all the state government officials interviewed. if Lexington campus. to determine the probable One goal of the researchers was to be .IQ;_QEQQZQEQifE{ffl}EQEQTQEQEQEQEQEEEQQ5 economic impact. Researchers Roger Calantone {EQ2 able to forecast the size of the supplier industry j and lirinton Milward worked on this initial study. as time went on. This goal. Calantone says. was "This preliminary study showed that the impossible to achieve. "We spent a lot of time state made a reasonable investment if looked at talking to Washington and found that they just over a ten-year period of time instead of in the didn't have the type of data they said they were shortterm," Calantone says. "One of our main going to collect. And the japanese automotive findings was that it was the automotive supplier companies themselves are generally very : industries that made Toyota a good deal herc." secretive about what they are doing. They just After the governor's office in Frankfort don't have the same attitude toward the press received the results of this study. the state and the public that American companies tend ` then funded (Zalantone and Nlilward to find out to have." l what the effects on the supplier industry would lle says that such secrecy is one of be. "As construction ofthe Toyota plant pro- several differences between 17.8. and japanese ~ ceeded. ntrmerotrs automotive suppliers an- Qi; corporations. The nature of japanese businesses nounced that they would be locating plants in is that executives tend to deal with companies the region." Calantone. a professor of market- on a long-terrn basis. in a close-knit set of rela- ing. says. "Kentucky was fast becoming a major tionships generally thought of as unusual by player in the automotive manufacturing and corporate America. japanese businesses extend supply industry." credit to their suppliers. send engineers to work The purpose of this second project was with their suppliers and tty to keep their to explore past. present and future trends in the relationship constant over a long period of time. atttomotive supply industry, to find otrt how the Another attitude difference is reflected on fEQ1Q:QfjlifififllElfllllllll::. new supplier network would enhance the the assembly lines of IIS. and _lapanese automo- eeonornre weltar-e ofthe state. and to determine {EQ2 bile plants. Calantone says that "five years ago if whether or not kentucky was getting its fair a worker in a U.S. plant stopped the assembly share of supplier plants as a result of Toyota. EQ? line to point out a problem. he was castigated: a Iil]l{EQff}l{ffl{ffl}l{llfllflllllE' "Supplier firms tend to surround atttotuo- ffl worker in a japanese plant was rewarded. Two tive plants like a huge spider web." (jalantone years ago this was only relatively true - Ford says. "\\'e wanted to see how many of these began adopting some of these japanese pro- TflllriiiiilliiiilltiUmul-U-I were actually going to land in lxcntucky." cesses in some of their plants, Ford being the (iillillll(>ITL LgjUlLlll`lS lllL1l_lL1jLI11t.fsc plillllfs 1ll`C llT()$[ llllCl`lT[lll()nLlllZCCl AlTlCI`lC1ll] 2lLl[() IZll{Cl`.ll attitude 0f lf trstrally located on large interstates so that (The Ford Motor Company is also Kentucky's iSn,t made here, suppliers may easily locate no more than a days first -atttom.obile manufacturer. The plant began ..;.;.;.;.;.....;.;;-5- dine away. ;,;. opcratron rn 1915 rn Louisville. turning out WC d0I]t want it, lnltheir research Milward. who now twelve Model Ts a day.-) has been Shaken. heads the public policy program at the l`niver- ln [KS. auto plants today, a new sense of iQ:.Q;Q::Q;f::::f:f: sitv of r\rixona. and tlalantone were joined by responsibility for the product has gained Lots Of people lleidi Newman and l.ttcinda Zoe. l\ewman has popularity. he says, one in which quality control now that an \ll$.-\ degree from l`lx and Zoe is a research is done on the assembly line rather than after the ifs good to get associate in the l"niversity's (Center for liusiness prodttct is built. 'LSo instead of rolling off a new _1;;;:;:;:;:;i;:;:;:;:;:;: and laconontrc l