NUMMI Case Analysis

Praveen Garg (PGP07035)

Established in Fremont, California and manufactured GM trucks
The previous system was coercive on systems and procedures front
A new way of management was developed with systematically studying the actions
and finding one efficient way of doing the tasks, output will be increased
This results into greater profits to both workers and management, hence lower
disputes
The changes were associated with daily operations, the worker, quality of product and
ultimately success of the plant itself
The previous system followed standardization to minimize game playing and
monitoring costs
NUMMI system allowed customization to different level of skill and experience and
guided on flexible improvisation
The previous system was designed so as to keep employees out of control loop but in
the new system more control of their own work was given to the workers
To help workers form mental models a glass box design was introduced
The previous system was instructed to be followed, not challenged but the NUMMI
system followed best practice template
In short, NUMMI was a transformation from a trust deficit organisation to a team
oriented organisation where productive participation was encouraged