Leopoldo E. Madrigal
University of Phoenix
An organizational technology integration model will be proposed using a specific case in the automotive industry, one that took place in 1998. A consideration to be noted is the potential that the proposed model could had been used successfully at the time of the presented case’s implementation as it may be used today in any situation to assess technology efficiency.
Antecedents
The problems the United States auto industry had during the late 70s and 80s were the lack of discipline, high absenteeism rates, and low morale among employees, all of which resulted in inefficiencies and low quality products. “Even with lesser quality, the (GM) Fremont plant averaged 34 man-hours of labor per automobile, versus only 20 at Toyota” (Rehder, Hendry, & Smith, 1985, p. 36).
The implementation of new technologies in the American automotive industry, such as lean manufacturing principles, self-directed teams, quality circles, and flexible operations required that employees and their unions were aligned and committed with this new direction. The results in organizations implementing new technologies in which stakeholders bought in were as expected and manufacturing productivity as well as product’s quality improved.
Product quality and production efficiency augmented as a result of implementing new technologies and new manufacturing approaches, as in example: Lean manufacturing, quality circles, self-directed work groups, and people empowerment. “NUMMI with some 170 robots is less automated than several of GM’s newer plants. Plans are to reach an annualized 200,000 units in 1986 with a work force of 2,500 – a level which rivals Japanese productivity” (Rehder et al., 1985, p. 38).
International Truck & Engine Company
In 1996 International Truck & Engine Company was evaluating the implementation of new technologies to improve its
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