Nummi And Gm Essay Example
Nummi And Gm Essay Example

Nummi And Gm Essay Example

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  • Pages: 3 (589 words)
  • Published: August 23, 2016
  • Type: Case Study
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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 integr


ated system where the key for success was teamwork.

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 improvemen

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prove management’s “intrinsic vision”, however, by focusing on achieving superior quality and productivity than GM; NUMMI succeed to have a good mix between “extrinsic” and “intrinsic” visions. At NUMMI people were encouraged to test and challenge existing processes, freely expose their thinking, propose a new solution or request new tools that cold improve the production process. New ideas were not just documented and rewarded, but new positive ideas were immediately implemented in the production process.

Toyota created a culture of constant follow-up and attention on details, but this culture was just part of an end-to-end Production System, which combined and integrated several systems such as the transportation system, assembly system, “just-in-time” system and worker responsibility and accountability system.

It is widely acknowledged that GM failed to learn from the NUMMI experience. If you were a GM corporate VP, what recommendations would you make to implement the lessons from NUMMI in order to make GM more competitive?

In my opinion, one of the main reasons for GM failure was the unwillingness to acknowledge the “cognitive structures” existing in GM for decades. These cognitive structures prioritized technology over the people and ignored the importance of mutual trust between workers and Management.

As a GM corporate VP, my first recommendation will imply removal of most GM plants management teams and institute new management teams composed of people involved and convinced by NUMMI’s effective system and success. These changes could convince unions and workers that GM management finally acknowledge the past mistakes by abandoning old cognitive structures and is finally ready to build a new organization culture based on trust, accountability, respect and teamwork.

justify;">Another proposal will be the creation of a performance team with the assigned mission of integrating various GM plants systems in a common system with a common strategy and goals.

I pledge my honor that I have not violated the Booth Honor Code during this assignment.

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