NUMMI and GM
Word count: 473
(1) Consider how NUMMI became a learning organization –what changes in structure, labor practices and especially management philosophy made NUMMI more competitive than the GM plant that it replaced? How do the different parts of the system support each other?
At NUMMI, Toyota started by implementing a business strategy based on trust, respect, and teamwork, as opposite with the GM strategy based on high-tech solutions over worker initiatives, which ultimately conducted to mistrust and adversity between management and workers. The change at NUMMI emphasized “human development” and constant follow up on details as the key for continuous improvement and permanent strive to perfection. Continuous productivity improvement and quality become not only the center of the new system but also the responsibility of every worker. Starting from materials and components outsourcing, to transportation, tools and assembly, Toyota created an integrated system where the key for success was teamwork.
(2) Discuss how NUMMI meets Senge’s fundamental leadership challenges:
a. Building shared vision
b. Surfacing and challenging mental models
c. Fostering systems thinking
NUMMI’s employees and teams were trusted, encouraged to think and find new ways for processes, quality and cost improvement; new ideas were valued, implemented and rewarded.
Starting with the hiring process NUMMI and UAW representatives allocated enough time for evaluations, but also for clearly communicates and explain company goals and vision. For example, by the time a new worker was hired, he already understood the new organization vision and the importance of quality. Company vision and aspiration for total quality was constantly renewed and messages reinforced on every occasion.
NUMMI success in achieving new quality and productivity standards by continuous improvement prove management’s “intrinsic vision”, however, by focusing on achieving superior quality and productivity
(1) Consider how NUMMI became a learning organization –what changes in structure, labor practices and especially management philosophy made NUMMI more competitive than the GM plant that it replaced? How do the different parts of the system support each other?
At NUMMI, Toyota started by implementing a business strategy based on trust, respect, and teamwork, as opposite with the GM strategy based on high-tech solutions over worker initiatives, which ultimately conducted to mistrust and adversity between management and workers. The change at NUMMI emphasized “human development” and constant follow up on details as the key for continuous improvement and permanent strive to perfection. Continuous productivity improvement and quality become not only the center of the new system but also the responsibility of every worker. Starting from materials and components outsourcing, to transportation, tools and assembly, Toyota created an integrated system where the key for success was teamwork.
(2) Discuss how NUMMI meets Senge’s fundamental leadership challenges:
a. Building shared vision
b. Surfacing and challenging mental models
c. Fostering systems thinking
NUMMI’s employees and teams were trusted, encouraged to think and find new ways for processes, quality and cost improvement; new ideas were valued, implemented and rewarded.
Starting with the hiring process NUMMI and UAW representatives allocated enough time for evaluations, but also for clearly communicates and explain company goals and vision. For example, by the time a new worker was hired, he already understood the new organization vision and the importance of quality. Company vision and aspiration for total quality was constantly renewed and messages reinforced on every occasion.
NUMMI success in achieving new quality and productivity standards by continuous improvement prove management’s “intrinsic vision”, however, by focusing on achieving superior quality and productivity