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The machine that changed the world…… 20 years ago!!

03 Dec

“ So far we’ve talked about innovations that involve the introduction in production vehicles of ideas already fairly well understood on the technical level. We’ve listed a number of advances of this type in the 1980s, and many more will be available in the 1990s -in particular, the application of electronics to mechanical vehicle systems such as vehicle suspension and the availability of mobile communications at lower cost in a much wider variety of vehicles. But what about epochal innovations– really big leaps in technological know-how such as would be entailed in workable fuel-cell power units or all-plastic body structures or sophisticated navigation and congestion-avoidance systems? As we will see, the 1990s may prove a time for such innovations. Can lean producers respond to these much more daunting challenges?

In fact, the world auto industry has lived during its first century in a benign environment -demand for its products has increased continually, even in the most developed countries; space has been available in most areas to expand road networks greatly; and the earth’s atmosphere has been able to tolerate ever-growing use of motor vehicles, with minor technical fixes in the 1970s and 1980s designed to solve smog problems in congested urban areas. Shortly, the environment for operating motor vehicles may become much more demanding.

Demand for cars is now close so saturation in North America, Japan, and the western half of Europe. A small amount of incremental growth will be possible in the 1990s, but by the end of the century producers in these markets will need to provide consumers with something new if they want to increase theirs sales volume (measured in dollars or marks or yen rather than units). Moreover, the growth of vehicle use and increasing resistance to road building have made the road systems of these regions steadily more congested, gradually stripping motor-vehicle use of its pleasure…” Pp135-137

Lexus Hybrid Drive Car

The Luxury Hybrid machine from Toyota

“ …Our goal is to specify the ideal enterprise in much the way buyers of such a craft-built cars as the Aston Martin used to specify the car of their dreams. Unfortunately, no such dream machine currently exists, so we will create it: Multiregional Motors (MRM).

The management challenge, we believe, is simple in concept: to devise a form of enterprise that functions smoothly on a multiregional basis and gains the advantage of close contact with local markets and the presence as an insider in each of the major regios. At the same time, it must benefit from access to systems for global production, supply, product development, technology acquisition, finance, and distribution…

…The key features of what we call Multiregional Motors are as follows:

An integrated, global personnel system that promotes personnel from any country in the company as if nationality did not exist. Achieving this goal obviously will require great attention to learning languages and socialization and a willingness on the part of younger personnel to work for much of their career outside their home country. However, we already see evidence that younger managers find career paths of this type attractive….

A set of mechanisms for continuous, horizontal information flow among manufacturing, supply systems, product development, technology acquisition, and distribution. The best way to put these mechanisms in place is to develop strong shusa-led teams for product development, which brings these skills together with a clear objective…

Teams would stay together for the life of the product, and team members would then be rotated to other product-development teams, quite possibly in other regions and even in different specialties (for example, product planning, supplier coordination, marketing). In this way the key mechanism of information flow would be employees themselves as they travel among technical specialties and across the regions of the company. Everyone would stay fresh and a broad network of horizontal information channels would develop across the company…

A mechanism for coordinating the development of new products in each region and facilitating their sale as niche products in other regions -without producing lowest-common denominator products. The logical way to accomplish this goal is to authorize each region to develop a full set of products for its regional market. Other regions may order these products for cross shipment as niche products wherever demand warrants…” Pp 223 – 227

Womack P. James,  T. Jones Daniel &  Roos Daniel (1990) The machine that changed the world. How Lean Production revolutionized the Global Car Wars. Ed. Simon & Schuster UK, Ltd. UK.

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