The New United Motor Manufacturing, Inc. (NUMMI) plant, a joint venture between General Motors (GM) and Toyota, stands as a landmark experiment in cultural transformation and lean manufacturing principles. This in-depth analysis delves into the remarkable turnaround at NUMMI, exploring the key strategies employed by Toyota to revolutionize a workforce once considered GM’s worst. We will examine the practical application of lean principles, the andon system, and the cultural shift that enabled this dramatic improvement in quality and productivity.
The Genesis of NUMMI: A Confluence of Needs
NUMMI was born out of a convergence of needs for both GM and Toyota. GM sought to learn the secrets of building small cars profitably, revitalize an idle plant and workforce, and gain insights into Toyota’s renowned production system. Toyota, meanwhile, faced pressure to establish U.S. production and saw NUMMI as a unique learning opportunity and a way to navigate the complexities of the American market.
The Fremont plant, chosen for the venture, had a history of labor disputes, poor quality, and high absenteeism. This presented a significant challenge for Toyota, particularly concerning the implementation of their employee-centric production system. The question loomed: could this “militant” workforce embrace the principles of teamwork and built-in quality that were central to the Toyota Production System (TPS)?
The Takaoka Plant in Japan, NUMMI’s “mother plant”, served as a training ground for NUMMI employees, showcasing the principles of lean manufacturing.
Transforming the Culture: Action Over Attitude
Contrary to expectations, the NUMMI workforce embraced the TPS with enthusiasm. The plant’s quality metrics soared from worst to best within a year, with the same workforce, including former “troublemakers.” Absenteeism plummeted from over 20% to a steady 2%. This remarkable turnaround debunks the myth that the success was solely due to weeding out problematic employees or a motivated workforce returning from layoff. The key differentiator was the implementation of the TPS.
A 1985 article from the UAW’s “Solidarity” newspaper highlighting the positive transformation at NUMMI.
The cultural shift at NUMMI wasn’t achieved by directly targeting attitudes or values. Instead, Toyota focused on changing behaviors. By defining desired actions, providing training, and reinforcing positive behaviors, the culture organically evolved. This approach aligns with the philosophy: “It’s easier to act your way to a new way of thinking than to think your way to a new way of acting.”
This model illustrates the approach to cultural change at NUMMI: changing behaviors first to influence values and culture.
The Andon System: Empowering Workers, Driving Quality
A prime example of this behavioral transformation was the implementation of the andon system, a cornerstone of the TPS. This system empowered workers to stop the production line upon encountering a problem, ensuring that defects were addressed immediately rather than passed down the line. This seemingly simple act represented a fundamental shift in responsibility and a commitment to building in quality.
The production flow at the Takaoka Plant exemplifies the efficiency and focus on continuous improvement that Toyota instilled at NUMMI.
The andon system, rooted in Sakichi Toyoda’s automatic loom, epitomizes Toyota’s respect for people. It acknowledges the right of every employee to be successful in their work, including identifying and addressing problems. Management’s role shifted from assigning blame to providing the necessary support and resources for problem-solving.
An example of an andon board, visualizing the areas along the production line and enabling quick identification of problem areas.
This contrasted sharply with the prevailing culture in many American auto plants, where workers often lacked the means or the encouragement to address problems effectively. NUMMI demonstrated that empowering workers to identify and solve problems is not just a philosophical ideal but a practical necessity for achieving world-class quality.
A New Perspective on Problems: “No Problem is Problem”
At NUMMI, the very concept of “problems” was redefined. Instead of being hidden or ignored, problems were viewed as opportunities for improvement. The Japanese mantra “No problem is problem” emphasized the continuous pursuit of perfection and the importance of identifying and addressing even seemingly minor issues.
This shift in perspective required a change in management’s role. Managers were tasked with not only solving problems but also fostering a culture where problems were openly discussed and addressed without fear of blame. The “five whys” approach replaced the “five whos,” focusing on identifying the root cause of problems rather than assigning blame.
The Long Road to Learning: GM’s Journey
While NUMMI was a resounding success, GM’s journey to fully integrate the lessons learned was long and complex. Despite early exposure to the TPS, it took GM nearly two decades to achieve significant, visible progress in implementing lean principles throughout their operations. This underscores the challenges of transforming deeply ingrained organizational habits and the importance of sustained commitment to cultural change.
NUMMI supervisors underwent extensive training in Japan, immersing themselves in Toyota’s culture and learning the principles of the TPS firsthand.
The Enduring Questions: Purpose, Process, and People
The NUMMI experience raises critical questions about the long-term sustainability of cultural transformations. While GM eventually achieved world-class quality and productivity in some plants, questions remain about the depth of their commitment to the people-centric principles of lean. True lean transformation requires ongoing engagement at all levels, empowering employees to identify and solve problems, and fostering a culture of continuous improvement.
The warm welcome extended to NUMMI trainees in Japan highlighted the cultural exchange and collaborative learning that characterized the NUMMI venture.
Perhaps the most fundamental question revolves around organizational purpose. Are companies driven by short-term financial gains or a long-term vision of creating value? The distinction between “surviving to make money” and “making money to survive” may be a crucial determinant of long-term success.
Conclusion: The Legacy of NUMMI
NUMMI stands as a testament to the power of lean principles and the transformative potential of a culture focused on continuous improvement. The experiment demonstrated that even a deeply troubled workforce can achieve remarkable results when empowered and supported by a system that values quality, teamwork, and problem-solving. While the NUMMI plant itself is no more, its legacy continues to inspire organizations around the world to embrace the principles of lean manufacturing and strive for operational excellence.
FAQ: Addressing Common Questions About NUMMI
Q: Was the NUMMI workforce truly the same as the pre-NUMMI workforce?
A: Yes, approximately 85% of the NUMMI workforce were UAW members from the old GM Fremont plant. While the workers remained largely the same, the management team was entirely new, reflecting the shift in leadership and operational philosophy.
Q: Was the success of NUMMI dependent on Toyota’s latest technology?
A: No, Toyota did not withhold any key technologies or “secret sauce.” The core principles of the TPS, including the andon system and standardized work, were fully implemented at NUMMI.
Q: Can other companies replicate NUMMI’s success without the same level of investment in training?
A: While the level of investment in training at NUMMI was significant, the core principles can be adapted and implemented in other organizations with varying levels of resources. The key is a commitment to cultural change and a focus on empowering employees.
Q: What is the most important lesson learned from NUMMI?
A: The most important lesson is perhaps the transformative power of engaging employees in problem-solving and continuous improvement. By empowering workers and fostering a culture of respect, organizations can achieve dramatic improvements in quality, productivity, and overall performance.
We encourage you to share your thoughts and questions about the NUMMI case study in the comments below. Let’s continue the conversation about the enduring lessons of this groundbreaking experiment.
