Lean Enterprise is an excellent book with many thought-provoking stories. I will let you to take a glimpse into its content by telling 3 stories from that book.
3. What is NUMMI?
◉ 1962-1982: one the worst GM plants.
◉ 1982: closed.
◉ 1984: reopened as NUMMI, a joint venture
between GM and Toyota.
4. GM vs. Toyota
◉ Toyota must avoid import restriction.
◉ GM wants to study Toyota’s production
system (TPS).
5. After NUMMI started
◉ Toyota rehired workers and sent them to Japan
to learn TPS.
◉ Within 3 months, NUMMI produced near-
perfect cars (as good as Japanese) with much
lower cost than GM plants.
6. “
it was the system that made it
bad, not the people.
- A union leader
7. How?
The primary idea of TPS is everyone should be
involved in deciding how to improve the system
8. Western traditional management
F. W. Taylor’s scientific management:
◉ Manager analyzes the work and break it down
into discrete tasks.
◉ Tasks are performed by specialized workers.
Organization = A machine which can be broken
down into component parts.
10. Taylorism vs. TPS
TPS:
◉ Require workers to pursue mastery through
continuous improvement.
◉ Autonomy to experiment with improvement
ideas.
◉ Giving people pride in their work (intrinsic
motivators) rather than trying to motivate
them with carrots and sticks
11. Did GM replicate NUMMI success?
◉ No, they didn’t.
◉ Toyota even opened public tours to its plants,
even to competitors.
◉ Let GM photographed every inches of NUMMI
to copy it precisely.
◉ TPS work is not so much any particular
practices but the culture of continuous
improvement.
12. The end of NUMMI
◉ 2009: GM went bankrupt and pulled out of
NUMMI.
◉ 2010: Toyota shut down NUMMI.
16. Prussian Army
◉ Larger army (250,000 vs 160,000)
◉ Better trained
◉ Classic plan-driven organization
17. Napoleon Army
◉ Maneuver warfare
◉ Situation changed so fast that communication
couldn’t keep up
◉ Able to learn, make decisions, and act faster
than enemy - the same capability that allows
startups to disrupt enterprises.
◉ And he won!
18. Aftermath: Mission Command Doctrine
◉ Officer’s autonomy.
◉ Mission Command = maneuver + scale.
◉ It is key to understanding how enterprises can
compete with startups.
21. NUMMI became Tesla Factory
◉ 2010: NUMMI was purchased by Tesla and
become Tesla Factory.
◉ Tesla uses continuous methods to innovate
faster than Toyota.
22. Tesla announced it will not enforce its patents.
◉ Origin is still Toyota’s spirit.
◉ Long-term value of an organization = ability to
innovate continuously improvement.
24. Any questions ?
You can find me at
◉ @hoangngoctu
◉ Skype: tu.hoangngoc
Thanks!
25. Credits
Special thanks to all the people who made and
released these awesome resources for free:
◉ Presentation template by SlidesCarnival
◉ Photographs by Unsplash