It seems there is a good chance that NUMMI the famous joint venture between GM and Toyota is going out of business. For the lean insiders among you this news has to be at least a little suprising.

Why? And why is this news for a blog like this? To get the full picture of this news we have to look at the history of NUMMI.

When it opened for production in 1984, NUMMI was the first joint venture automotive plant in the United States. For Toyota it was a chance to expand its manufacturing to North America. GM on the other side saw this joint venture as an opportunity to learn about the ideas of lean manufacturing from the inventer of lean itself.

Since its beginning the plant, its management values, methods and techniques  served as the shining example and proof that lean and the resulting benefits could be implemented anywhere. Classic lean books like The Toyota Way praise NUMMI for following all 14 principles of lean. The most important and basic being:

Principle 1: Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

The book cites a few situations in which Toyota indeed decided against closing the plant. For example instead of following the trend of the times and moving all of production to places like mexico management only moved a part of the work and found other things for the plant to do. The rationale of all this being that the workers themselves at the end »couldn’t be blamed for having done anything wrong«. The ultimate goal of humanity before profit seemed reachable.

Times seem to be really different this time. To all »believers« in lean values it will be very interesting to watch Toyotas next actions.

Will it stay loyal to its own principles? Or is a paradigm shift near, crushing down the »old «values? Will management give in to the crisis and the omnipresent subliminal call for »drastic actions«?

We’ll stay tuned.