2019.10.17
昨日の日本文を英語にします!
Sunk cost and buy only the necessary amount
In Kyocera philosophy, Mr. Inamori* warns about the purchase. When we buy goods and services, you may consider the discount come from the quantity, the more you buy, the more discount you get. However, especially in manufacturing industry, he has been very much cautious on having a stock and sunk cost. I would like to explain more by referring his examples and energy circulations in our society.
Q: Why Mr. Inamori encourages his staffs to buy only the amount necessary for the production?
A: Frist of all, back-up materials may create additional cost, space occupying and you should spend more on maintenance for materials which you purchased due to the discount. Secondly, staffs treat those materials very carefully. If you think that you can waste several parts as you have enough substitutes, you may become careless in treating materials. However, if the quantity is limited and there is no substitute, you should pay much attention on how to use those materials. Thirdly, cost planning and projection can be more precise and accurate, if we limit the number of supplies in terms of production materials. Those are the basic ideas why Kyocera encourages the policy “Buy only the necessary amount”.
Q: Why this is so important?
A: Because this tells us the “given” function that each existence has in this world and allows us to understand the natural energy stream and resonation. Under Buddhism, each existence has its own mission to be in this world. For instance, a piece of nut exists here to be used a part of machine. If a nut is used in the production, this small part completes its mission. However, if this stays in a warehouse for long as a substitute material, this part would not complete its mission. This might be disposed without being placed in a production process. In Buddhism, we should take precautions for such behavior, holding unused assets or wasting our resources.
Q: However, sometimes sunk cost occurs, what should we do?
A: The important thig is the energy circulation and resonation. When the mission allocated to each creature or material is completed, it can create harmony and synergy with other creatures or materials, simply, exitance. This interaction may be developed into a sort of resonation. Unused materials would never “rest in peace” and may end up creating negative spiral. Negative spiral would affect unfavorably the management results. Therefore, the best way is possessing something necessary.
Q: Is this mind-set common under Asian culture?
A: I can tell you another example. Mr. Yamaguchi, the master of Aikido, told us that if your hand is full, nothing more you can grab. If you want to grab more, first you should give away everting you hold and make your hand empty. Something you have in your hand is the metaphor of your persistence, obsession, biased idea, or prejudice. What you piled up in your storage is also the same. Those are unnecessary but you purchased them just for believing it to be a great deal. Think carefully what you need. Most of the items that you want, you would not actually need.
Q: What are the lessons learned from this philosophy?
A: Identifying what is necessary, in terms of quantity and quality, this is worth doing to add value to the management results and to your life.