Acknowledgements: The research on which this study is based would not have been possible without the generous cooperation of managers‚ workers and union officials at NUMMI. Gary Robinson helped transcribe taped interviews with them and discern the key points. This article has benefitted from the comments of several NUMMI people and from the responses of many friends and colleagues: Chris Argyris‚ Joel Beinin‚ Christian Berggren‚ Bob Brenner‚ Clair Brown‚ El Buffa‚ Bob Cole‚ John Ettlie‚
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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
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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
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The extraordinary success of NUMMI over GM can be attributed to NUMMI becoming a learning organization‚ and bears evidence to Senge’s description on learning organizations. The words of Ray Stata “The rate at which organizations learn may become the only sustainable source of competitive advantage” ring true in every aspect in considering the NUMMI vs GM case. The following factors played a key role in developing a ‘generative’ learning approach in NUMMI‚ a key source of its competitiveness:
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Manufacturing Inc.‚ (NUMMI)‚ Fremont‚ Calif. JIT delivery‚ in which plants receive frequent deliveries of parts and materials in small lots timed to production‚ has saved manufacturers millions of dollars in inventory carrying costs. But the logistics turmoil of the Sept. 11 terrorist attacks and this fall’s labor disputes on the western waterfront exposed a problem with JIT -- with little or no materials on hand‚ plants can be immediately idled by delayed deliveries. NUMMI‚ for instance‚ shut
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at General Motors‚ Toyota‚ and the joint venture between GM and Toyota‚ the New United Motor Manufacturing Inc. (NUMMI) plaint in Fremont‚ California. The result of the study should raise some very disturbing questions about the quality and productivity of American operations‚ namely: • Why did GM’s Framingham plant require 31 hours to assemble a car when the Toyota plant only required 16 hours- or roughly half the time? • Why did the GM plant average 135 defects per car when Toyota had only 45
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October 2nd‚ 2012 @ 11:59 PM (in our web site’s drop box) You have been hired by General Motors as a consultant to describe the basic operations at NUMMI‚ your job is to generate a briefing that will be distributed to top managers at GM. In 1000 words or less create a memorandum that contains the following information: 1. Basic history of NUMMI (the GM and Toyota joint venture) 2. Basic responsibilities for each one of the partners (“one is in charge of production‚ the other is in charge of
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GENERAL MOTORS SITUATION ANALYSIS The world’s largest car manufacturers Japan-based Toyota and and US-based General Motors [GM] have joined together in Australia to create a joint venture under a new company called United Australian Automotive Industries [UAAI]. This is hoped to see replication of same success as the New United Motor Manufacturing Inc venture between Toyota and GM in California‚ but this was not to be the case due to various internal and external factors. The joint venture which involved
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advanced engineering techniques‚ engine technology and styling‚ they did not match Toyota in efficiency‚ productivity and quality. Executives of rival companies also appreciated Toyota’s manufacturing and product development systems. Officials at GM commented‚ "Toyota is the benchmark in manufacturing and product development." A top executive at Ford said‚ "Toyota is far ahead in developing markets that the real race is for the second place." Some executives at BMW also considered Toyota the
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Global and Domestic Marketing Toyota Motor Corporation conducts both domestic and global marketing with 51 overseas manufacturing companies in 26 countries and regions. Toyota’s vehicles are sold in more than 170 countries and regions (Toyota‚ 2010). This paper will identify the environmental factors that affect global and domestic marketing decisions and address how they relate to the marketing decisions by analyzing the influence of global economic interdependence and the effect of trade
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