For Toyota, of course, that was no decision at all - it was a given. And remember, this was the early s. Toyota kept the best stuff - the secret sauce - behind locked doors. The first of those revolves around people and management. For GM, on the other hand, it was only about half-way through the life of the JV that the Nummi case learning started to pay off.
Toyota had a lot of confidence in its system. For Toyota, of course, that was no decision at all — it was a given.
Through such a policy, real trust can develop between the company and employees, along with the motivation for employees to accept responsibility and take ownership. I was relieved they didn't ask me to translate - the content of the presentation by the US attorney was far too technical for the level of my Japanese language at the time.
With automobiles, everything, every component, is engineered for each vehicle.
So, a question I've heard a lot recently: One phrase known and used with gusto by every early member of NUMMI was the Japanese word for "no problem," which, when spoken with a typical American accent, Nummi case pretty much like "Monday night.
Today GM has plants that arguably are on a rough Nummi case with Toyota in terms of both quality and productivity. These little things were important. Need a New Way of Thinking. Under ordinary circumstances, Toyota would never close an operation it had invested in. The exact same workers, including the old troublemakers.
And they still had not "learned" the Toyota Production System. Above all, Toyota faced two big unknowns when it came to operating outside Japan even outside Toyota City: That's a huge investment that few think they can afford.
Employee motivation comes from assuring membership in the organization, rather than from buying and selling time, whatever the Nummi case tag. That translates into a promise from management to the workforce. People and suppliers, those were the difficult questions and challenges -- how could they be answered quickly.
So, instead of Ford, GM was the easy second choice. But why California, the most expensive place in the U. The culture will change as a result. Product and process - all the physicals. Mostly through reengineering ideas he found from textile companies in the U.
Between andthe company had evolved a way of working that was revolutionary. So to be the worst in GM's system at that time meant you were very, very bad indeed.
Furthermore, I always try to make it obvious when I am providing facts versus interpretation or opinion. Only as a last resort will it turn to reducing the work force. Second, NUMMI put complete trust in its workers by putting an emphasis in human development NOT technological development and implemented a team production assembly.
And, by the end, when other GM operations had improved so much, NUMMI no longer provided the dramatic impact on visitors it did back in the 80s, when visitors would leave slack-jawed at what they had seen.
From the outset, it set up the plant properly, did not complicate the work force with brand new technology, selected suppliers, developed transportation systems to coordinate shipments, focused on effective quality controls from each division, and established credibility and trust with the UAW early in the process.
Contrast that with my first experience observing work on a Big Three assembly line. What we do when someone finds one and exposes it. But, he probably wouldn't like the "help" he would get.
The first case I know of a Toyota manager issuing the now-famous Japanese English edict of "No problem is problem!" was Mr. Uchikawa (who I also mentioned last week).
The arrival of trainees from NUMMI was as big a cultural event for the workforce of Takaoka Plant (and eventually all of Toyota) as it was for the people of NUMMI. Last week, Toyota announced it will close the plant of New United Motor Manufacturing Incorporated (Nummi), its one-time joint venture with GM to make cars in California.
(GM had pulled out of the. Access to case studies expires six months after purchase date.
Publication Date: January 01, This is an MIT Sloan Management Review article. The joint venture between Toyota and GM known as. My work with NUMMI was the greatest experience of my professional career.
My learning curve was so steep I couldn't see to the next step, let alone the top of the stairs. I remember thinking, literally, "If someone came along and made me rich with a big, fat check, I would still do exactly what I.
Nummi Audio Case NUMMI Joint Venture GM entered the NUMMI joint venture because it needed to build smaller cars that met the United States government's new emissions guidelines. GM had tried to build these cars on its own, but had always lost money on these smaller cars in the process.
Last week, Toyota announced it will close the plant of New United Motor Manufacturing Incorporated (Nummi), its one-time joint venture with GM to make cars in California. (GM had pulled out of the.Nummi case