Here's some Saturday morning listening… a story from yesterday's “All Things Considered” on the “End of the Line” at the NUMMI plant (the GM / Toyota joint venture that will produce its last car next week).
The story highlights some of the problems the old Fremont CA plant had before GM closed it the first time in 1982:
- Workers drinking on the job
- Workers having sex in the plant
- Bad absenteeism, compounded by management finding random drunks at the bar across the street to come fill in on the line
- Workers hating management so much that they sabotaged vehicles
The root cause isn't only “bad workers.” A lot of it was due to “bad management system,” something that changed dramatically when NUMMI was formed with Toyota management principles and practices. As with many things in life, it was complicated. In this post, I'll also share my personal experiences with one of the leaders who is quoted in the story.
NUMMI, of course, quickly became a huge success after it reopened with mainly the same workers, but with a new management system and new managers.
But why didn't GM (the rest of GM) learn more of the lessons? There were certainly attempts. In my second year at the GM Livonia Engine Plant (in my hometown, in Michigan), a new plant manager was brought in with NUMMI experience — a man named Larry Spiegel. He is quoted in the NPR piece:
One of the early efforts to spread Lean and TPS was at the Van Nuys factory, also in CA. But the efforts, failed, as Spiegel explained (the term “commando” was given to the GM people who were brought it to learn from NUMMI.
“The lack of receptiveness to change was so deep,” said Larry Spiegel, one of the commandos who struggled to transform the Van Nuys plant. “There were too many people convinced they didn't need to change.”
Spiegel said that even though GM had threatened to close the plant, workers believed it would never happen. And they stuck with their old ways.
At our engine plant, our quality and productivity (not to mention morale) were at the bottom of the barrel, even by GM standards. Spiegel spent months walking the plant floor (the “gemba”). He listened to people, he talked with them. This was a very different leadership style than before. I mean, he was the Plant Manager, with (I think) about 800 people reporting to him. But he took the time to go and see, a lesson from NUMMI.
Being a young, impatient engineer, I was ready for change. I knew the old management mindsets weren't working, I believed in the promise of Lean and TPS — although we couldn't call it “lean” and we didn't make much mention of Toyota.
I asked Larry, at one point, when were we really going to start fixing things… let's go! As I recall his answer, Larry said something like:
“I know what we have to do here (based on experiences at NUMMI and the Warren Transmission Plant). But the people here don't that I know. I have to take time to build respect, to let them know I've heard them and I've seen the problems first hand.”
That encounter, and Larry's leadership, made a huge impact on me in my young career. Even though I left for MIT in 1997, I kept in touch with people and was happy to hear that the Livonia plant made great strides in the first few years, moving up to the top quartile from the bottom of the barrel. They were improving quality and productivity. They had a new engine program assigned to them.
But, the plant became a victim of GM's bankruptcy and is now on the closure blocks, if it isn't already closed.
Here is a Google satellite view of the plant. That parking lot used to be really full, both day and night shift. Whenever I've been home in recent years, the parking lot was always pretty empty after 4 PM. One sign of the sad decline of a plant that had some great leadership and WAS learning from NUMMI.
Here is Episode #403 of “This American Life” this weekend.
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