Solving the Wage Differentials Throughout the Supply Chain by Collaborative Innovations for Changing the Parts Prices and Costs

The following sections are included:Theme of This PaperJapanese Causes of Poverty and How We Should Cope with the Wage DifferentialsWhy Can the Inter-firm Network Reduce the Costs? Negative and Positive AspectsDemand for Higher Wages by the Japanese Government to the Industrial World: The First Phase MovementIncrease in the Parts Prices Facing the Yen Currency Depreciation: The Second Phase Movement of Demand for Higher Wage by Premier Abe in the Government/Labor/Management ConferenceProblem to be Considered in the Pay Raise by the Government LeadershipCollaborations During the Yen Currency Depreciation PeriodsCollaborations During the Yen Currency Appreciation PeriodsNegotiation Between Automaker and Parts Supplier for Determining the Parts Prices in the Product-Development Phase: Application of VE or Target CostingHow to Adapt to the Parts-Price Reduction Requested by the Automaker Twice a Year: VA or “Kaizen Costing” Applied to Achieve the Newly Reduced Target Cost for the Part in the Manufacturing PhaseFor the Assurance of Sustainable Supply Chain: Incentives to Induce the Members’ ContributionsConcluding Summary for Continuous EvolutionReferencesSupplementary Reference Resources