Nummi Paper (1) (1)

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Feb 20, 2024

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Var Campbell Bill Hunt 9-22-23 Nummi Paper Throughout my career in the automotive industry, I have had the opportunity to witness firsthand the transformative power of organizational culture on both employees and the products they create. One shining example of this is the New United Motor Manufacturing, Inc. (NUMMI) plant, a joint venture between Toyota and General Motors that operated in Fremont, California, from 1984 to 2010. From there on NUMMI's unique culture and approach to manufacturing not only changed throughout the industry but also definitely influenced the lives of its employees. In this paper, I will explore NUMMI's culture and its remarkable impact on people, comparing it to other automotive brands to highlight the exceptional nature of this partnership. The NUMMI plant was born out of the ruins of the old General Motors Fremont Assembly plant, which was notorious for its dismal labor relations, low productivity, and subpar quality. In 1982, GM and Toyota decided to form a joint venture, with Toyota providing the manufacturing expertise and GM contributing the facility. The goal was clear: to turn the failing plant into a model of efficiency and quality. The journey began by transforming the culture within the factory. NUMMI's culture was a radical departure from the norm in the American automotive industry. While traditional assembly line work was often characterized by rigid hierarchies, adversarial labor-management relationships, and a focus on individual tasks, NUMMI embraced

the principles of the Toyota Production System (TPS), also known as lean manufacturing. This cultural shift had several key components: Teamwork and Empowerment: NUMMI introduced the concept of self-managing work teams. Employees were no longer cogs in a machine but active participants in problem-solving and decision-making. Team members were empowered to stop the production line if they identified quality issues, fostering a sense of ownership and responsibility. Continuous Improvement, and throughout this culture at NUMMI prioritized continuous improvement through the practice of kaizen. Employees were encouraged to seek better ways to perform their tasks and make incremental improvements in quality and efficiency. Our culture of continuous learning and adaptation set NUMMI apart. Respect for People: A fundamental principle of TPS is respecting the people who do the work. NUMMI emphasized treating employees with respect and dignity, fostering a sense of loyalty and commitment among the workforces. Quality Focus: NUMMI placed quality above all else. Every employee was responsible for ensuring the quality of the final product, from assembly line workers to managers. This relentless pursuit of quality led to a remarkable improvement in vehicle reliability. The transformation brought about by NUMMI's culture was profound for our employees. Workers who had previously been demoralized and disengaged found themselves in a supportive and collaborative environment. WE took pride in our work, knowing that our contributions mattered and were valued. Employee turnover decreased significantly, and absenteeism became rare. NUMMI's culture also had a tangible impact on job satisfaction and overall well-being. The factory became a place where people wanted to work, not just out of necessity, but because they

found fulfillment in their roles. This was in stark contrast to the dismal working conditions and strained relationships that had plagued the plant before. To illustrate the exceptional nature of NUMMI's culture, it is essential to compare it to the practices and cultures of other automotive brands, particularly those in the American industry. Ford: Traditional American automakers like Ford had long adhered to the principles of mass production, which often led to monotonous and repetitive tasks for workers. In contrast, NUMMI's culture emphasized job rotation and skill development, making work more engaging. Chrysler: Chrysler, like other American automakers, struggled with quality issues during the 1980s. NUMMI's relentless focus on quality and the empowerment of employees to address quality problems set it apart. Honda, While Japanese manufacturers like Honda had already embraced many of the principles that NUMMI adopted, NUMMI was unique in its ability to turn around a failing American factory. It demonstrated that the principles of lean manufacturing were not limited to Japanese culture. Comparing NUMMI to other American manufacturing plants, it becomes evident that NUMMI's culture had a significantly positive impact on employee satisfaction, product quality, and long-term viability. We see that within Toyota and other brands in the world. Working towards change to benefit not themselves but everyone around them is the greatest thing we can ever see. Toyota's partnership with NUMMI showcased the stark contrast between Japanese and traditional American automakers in terms of manufacturing practices. While American

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