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Sunk cost and buy only the necessary amount

In Kyocera philosophy, Mr. Inamori* warnsabout the purchase. When we buy goods and services, you may consider thediscount come from the quantity, the more you buy, the more discount you get.However, especially in manufacturing industry, he has been very much cautiouson having a stock and sunk cost. I would like to explain more by referring hisexamples and energy circulations in our society.

Q: Why Mr. Inamori encourages his staffs tobuy only the amount necessary for the production?

A: Frist of all, back-up materials may createadditional cost, space occupying and you should spend more on maintenance formaterials which you purchased due to the discount. Secondly, staffs treat thosematerials very carefully. If you think that you can waste several parts as youhave enough substitutes, you may become careless in treating materials.However, if the quantity is limited and there is no substitute, you should paymuch attention on how to use those materials. Thirdly, cost planning andprojection can be more precise and accurate, if we limit the number of suppliesin terms of production materials. Those are the basic ideas why Kyoceraencourages the policy “Buy only the necessary amount”.

Q: Why this is so important?

A: Because this tells us the “given” functionthat each existence has in this world and allows us to understand the naturalenergy stream and resonation. Under Buddhism, each existence has its ownmission to be in this world. For instance, a piece of nut exists here to beused a part of machine. If a nut is used in the production, this small partcompletes its mission. However, if this stays in a warehouse for long as asubstitute material, this part would not complete its mission. This might bedisposed without being placed in a production process. In Buddhism, we shouldtake precautions for such behavior, holding unused assets or wasting ourresources.

Q: However, sometimes sunk cost occurs, whatshould we do?

A: The important thig is the energycirculation and resonation. When the mission allocated to each creature ormaterial is completed, it can create harmony and synergy with other creaturesor materials, simply, exitance. This interaction may be developed into a sortof resonation. Unused materials would never “rest in peace” and may end up creatingnegative spiral. Negative spiral would affect unfavorably the managementresults. Therefore, the best way is possessing something necessary.

Q: Is this mind-set common under Asianculture?

A: I can tell you another example. Mr.Yamaguchi, the master of Aikido, told us that if your hand is full, nothingmore you can grab. If you want to grab more, first you should give awayeverting you hold and make your hand empty. Something you have in your hand isthe metaphor of your persistence, obsession, biased idea, or prejudice. Whatyou piled up in your storage is also the same. Those are unnecessary but youpurchased them just for believing it to be a great deal. Think carefully whatyou need. Most of the items that you want, you would not actually need.

Q: What are the lessons learned from thisphilosophy?

A: Identifying what is necessary, in terms ofquantity and quality, this is worth doing to add value to the managementresults and to your life.      




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