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General Motors Manufacturing Case Summary

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Executive summary

In spring 2010, New United Motor Manufacturing Inc., a successful joint venture between Toyota Motor Co. and General Motors Co, shut down its plant in Fremont, California. Over two decades NUMMI was a model manufacturing plant with high quality and productivity, exceptional worker’s satisfaction and attendance. What did NUMMI do to change the former GM’s dysfunctional disaster into best plant?
This report is going to examine a dramatic change conducted by NUMMI’s leadership. It will address three main reasons which made this change possible: • Creating a new production system • Developing a new management system • Reformation of corporate culture.
And finally, the recommendations will be identified …show more content…

NUMMI was created as a team-based organization with sense of interdependence and unity. There were just three-level management levels; in contrast, old GM’s plant had a six levels hierarchy. A team leader, who was responsible not only for coordinating teamwork and trainings of team members, but also was able to replace a team member on line if needed, represented the first level of management. The second-level management in addition was responsible for budgeting and planning. Moreover, these managers were expected to resolve the problems at the lowest possible level.
In order to foster fair and efficient environment NUMMI designed a new job structure; specifically, job classifications were reduced from 81 to 3 with the same wage rate. Developed reward system also tended to equalize rewards among employees. For instance, a team leader received only a 50-cent hourly premium and each team was awarded with a small social budget.
Continual training system and information sharing among all team members let the company to support its goals. Implementing the stop-the-line system allowed management to empower its employees by pushing down responsibility for the production and quality at the lowest possible level, to a worker. Meanwhile, the policy of “mutual trust” or no-layoff policy established a real trust between the company and employees by ensuring its workers to

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