NUMMI Analysis
Executive Summary
The goal of this executive summary is to identify the problems, the major causes, solutions and methods of implementation for the New United Motor Manufacturing Inc. better known as NUMMI. NUMMI though specializes in vehicle manufacturing, was having trouble producing small vehicles. NUMMI workforce also had a horrible reputation. NUMMI would like to successfully reinvent its organization culture and produce high quality vehicles. NUMMI solution is to adopt a new production and management systems. To conclude this report, we will justify why adopting new production and management system will benefit NUMMI and help change its organizational culture.
Problem Identification
In1983 the New United Motor Manufacturing Inc., Toyota and GM joint venture experiment in a unlikely collaboration to bring a new fleet of profitable small cars to the United States. This partnership took place in Fremont, California in a factory plant called NUMMI. GM objective was to learn how to make small profitable vehicles and learn Toyota production and Management System. Toyota objective on the other hand wanted to simply begin producing vehicles in the United States. GM already had the infrastructure in place that Toyota needed; this lead to their partnership.
The workforce at the original GM Fremont factory was well-known to be the worst in producing low quality vehicles in the GM ecosystem. “The work force in those days had a horrible reputation, frequently going out on strike (sometimes wildcat strikes), filing grievance after grievance and even sabotaging quality.”(Shook 2010) The objective of NUMMI was to devise a plan to help change the culture of the organization.
NUMMI would measure there outcomes by successfully reinventing there organization culture and producing high quality vehicles. This level of achievement allowed NUMMI to go from being GM’s worst factory to later becoming one of its best. NUMMI employees where empowered to be accountable
The goal of this executive summary is to identify the problems, the major causes, solutions and methods of implementation for the New United Motor Manufacturing Inc. better known as NUMMI. NUMMI though specializes in vehicle manufacturing, was having trouble producing small vehicles. NUMMI workforce also had a horrible reputation. NUMMI would like to successfully reinvent its organization culture and produce high quality vehicles. NUMMI solution is to adopt a new production and management systems. To conclude this report, we will justify why adopting new production and management system will benefit NUMMI and help change its organizational culture.
Problem Identification
In1983 the New United Motor Manufacturing Inc., Toyota and GM joint venture experiment in a unlikely collaboration to bring a new fleet of profitable small cars to the United States. This partnership took place in Fremont, California in a factory plant called NUMMI. GM objective was to learn how to make small profitable vehicles and learn Toyota production and Management System. Toyota objective on the other hand wanted to simply begin producing vehicles in the United States. GM already had the infrastructure in place that Toyota needed; this lead to their partnership.
The workforce at the original GM Fremont factory was well-known to be the worst in producing low quality vehicles in the GM ecosystem. “The work force in those days had a horrible reputation, frequently going out on strike (sometimes wildcat strikes), filing grievance after grievance and even sabotaging quality.”(Shook 2010) The objective of NUMMI was to devise a plan to help change the culture of the organization.
NUMMI would measure there outcomes by successfully reinventing there organization culture and producing high quality vehicles. This level of achievement allowed NUMMI to go from being GM’s worst factory to later becoming one of its best. NUMMI employees where empowered to be accountable
References: 1. Champagne, P., & McAfee, B. (1989). Motivating strategies for performance and productivity. In A guide to humane resource development. New York: Quorum Books. 2. Ramlall, S. (2004). Motivation Theories and their Implications for Employee Retention within Organizations. Journal of the American Academy of Business, (5), 52-64. 3. Shook, J. (2010). How to Change a Culture: Lessons From NUMMI. MIT Sloan Management Review, 51(2). 4. Steers, R., & Porter, L. (1983). Motivation & Work Behavior. New York: McGraw-Hill Book Company. 5. Nohria, N., Groysberg, B., & Lee, L. (2008). Employee Motivation: A Powerful New Model.Harvard Business Review.