Creating Lean Industrial Relations: General Motors in Silao, Mexico

Abstract

Research demonstrates that firms tailor their 'lean production' systems to take advantage of local cultural, industrial and labour relations environments to enhance productivity and at specific worksites. This article analyses the human resource policies practised by General Motors (GM) and their suppliers in Silao, Mexico to identify two local innovations to the automaker's lean production system. First, GM achieved the labour stability necessary to implement lean production by meticulously selecting workers and by embracing a local labour union eager to work with the firm. Secondly, GM and its local suppliers co-ordinated a single industrial relations regime, dividing the local labour force between them and maintaining a pay hierarchy among the plants. Doing so increased their collective efficiency by matching each of the factory's production processes with a capable segment of the labour market while stifling wage inflation by reducing competition among them.

Lean manufacturing as a vehicle for improving productivity and customer satisfaction

“…A philosophy that shortens the time between customer order and shipment of the final product 10 Storch and Lim (1999) An efficient way to satisfy customers and increase competitiveness 11 Howell (1999) A new way to optimize performance of the production system 12 Comm and Mathaisel (2000) A philosophy that significantly reduces cost and cycle time throughout the entire value chain 13 Liker and Wu (2000) A philosophy toward delivering highest quality product on time and at the lowest cost 13 Shah and Ward (2003) An approach to deliver the upmost value to the customer 14 Alukal (2003) A philosophy that shortens lead time between customer order and shipment of the products 15 Hopp and Spearman (2004) An integrated system that accomplishes production of goods/services with minimal buffering costs 16 Haque and Moore (2004) Eliminating waste and improving the flow of value 17 Rothstein (2004) An array of manufacturing system that include many tools 18 Worley (2004) Systematic removal of waste by all staff from all areas of a firm 19 Simpson and Power (2005) An efficient and well-organized generating system for continuous improvement and waste elimination 20 Seth and Gupta (2005) Continuous minimizing of waste to maximize flow 21 Taj and Berro (2006) Manufacturing without waste 22 Shah and Ward (2007) Lean is a management philosophy focused on identifying and eliminating waste throughout a product's entire value stream, both within the organization and along its entire supply chain network (the best definition selected by the author of this paper) 23 Holweg (2007) Extends the scope of Toyota Production philosophy to product development process, supplier management process, customer management process and policy-focusing process 24 Taj and Morosan (2011) A multidimensional approach that consists of JIT, Cellular Layout, TPM, TQM and HRM that has positive impact on operations/competitive performance 25 Zahraee et al (2014b) An efficient technique to sustain competitiveness in an expanding global market Lean manufacturing to eliminate waste by concurrently reducing or minimizing supplier, customer and internal variability".…”

Lean manufacturing: literature review and research issues

“…Haque and Moore (2004) Lean is by definition an enterprise initiative with a common format for all business processes with the single strategic goal of eliminating waste and improving the flow of value 22. Rothstein (2004) Lean production is more commonly considered as a broad production paradigm including an array of manufacturing systems containing some variety of lean practices, such as justin-time inventory systems, teamwork, multi-tasking, employee involvement schemes, and policies for ensuring product quality throughout the production process (continued )…”

Knowledge management in the Peruvian non‐profit sector

“…For example, in Latin America, existing research has shown how national culture can affect management processes in small and medium businesses as well as in multinational corporations (e.g. see Rothstien, 2004;Athanassiou et al, 2002 for the case of Mexico). Despite this important fact, until now there is little empirical evidence of the existence of clear patterns showing how national culture of a given country affects management processes in systematic ways.…”