3 stories from Lean Enterprise
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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.
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3 stories from Lean Enterprise
- 1. 3 stories from Lean Enterprise @hoangngoctu
- 2. NUMMI New United Motor Manufacturing, Inc. 1
- 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.
- 9. Taylorism vs. TPS Taylorism: ◉ Workers = Cogs in a machine ◉ Paid = perform pre-planned actions as fast as possible
- 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.
- 13. Moral of the story? Let’s discuss!
- 15. Command and Control Classic ◉ People in charge make the plans ◉ People on the ground execute
- 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.
- 19. Moral of the story? Let’s discuss!
- 20. NUMMI part 2 New United Motor Manufacturing, Inc. 3
- 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.
- 23. Moral of the story? Let’s discuss!
- 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