Value-Based Decision-Making in

Technology Operations
Michael Gideon Boniface
OPM6090: Technology and Operations
Management
Professor Mark McCoy
October 1, 2024
Introduction

This report looks at value based decision making at Zendron Manufacturing Limited,
a fictional company struggling with production efficiency and quality control. Using
insights from the NUMMI (New United Motor Manufacturing Inc.) plant and the
Toyota Production System (TPS) as outlined in the NUMMI podcast this report
outlines a full strategy to improve Zendron Manufacturing Limited's operations using
TPS principles of continuous improvement (Kaizen), waste reduction and employee
empowerment.

As the new operations manager I want to fix the current production issues and
implement ways to optimise operations, increase productivity and grow sustainably
at Zendron Manufacturing Limited. This report is the plan.

1. Key Insights from NUMMI and the Toyota Production System (TPS)
The NUMMI case as described in the podcast has some key takeaways for Zendron
Manufacturing Limited:
Continuous Improvement (Kaizen)
At NUMMI, Kaizen was the core of the plant’s turnaround. Workers were encouraged
to submit suggestions on how to improve their jobs and management would
implement them quickly. John Shook a former Toyota employee said how this culture
of continuous improvement allowed workers to suggest tools or processes to
improve the workflow and productivity went up (Langfitt et al., 2023).
At Zendron Manufacturing Limited, Kaizen will create an environment where workers
will submit ideas for process improvements. This will ensure that inefficiencies are
addressed quickly and better outcomes.
Waste Reduction
NUMMI showed how Toyota’s approach to waste reduction, eliminating non value
adding activities such as excess inventory, rework and unnecessary movement of
parts. The podcast described how Toyota’s lean philosophy emphasized the need to
streamline production to eliminate waste (Langfitt et al., 2023).
At Zendron Manufacturing Limited, value stream mapping will help identify
inefficiencies and reduce waste in the production process. Just in time production will
ensure that materials are only ordered and produced as needed and minimize
excess inventory and workflow (Ohno, 1988).
Employee Empowerment
The NUMMI podcast emphasizes the importance of worker empowerment for high
quality production. Workers at NUMMI were given the authority to stop the
production line if they saw defects, using the andon cord system. This was a big
cultural shift from GM’s previous practice where the line never stopped even with
defects (Langfitt et al., 2023).
Zendron Manufacturing Limited can do the same by implementing an andon cord
system. Workers will be trained to identify issues in real time and will have the
authority to stop production to prevent defects from moving further down the line.
This will promote accountability and quality will be top priority (Shook, 2010).
Teamwork and Collaboration
NUMMI’s transformation included the introduction of small teams where workers
rotated tasks and worked together to solve problems. This system increased
engagement, reduced boredom and promoted teamwork (Langfitt et al., 2023).
Zendron Manufacturing Limited will have team based structures and encourage
collaboration across roles. Workers will have a full understanding of the production
process and work together to improve efficiency and quality control.

2. Application to Zendron Manufacturing Limited

The lessons from NUMMI and TPS can be applied directly to Zendron Manufacturing
Limited's current production challenges:

Increase Production Efficiency and Quality Control

Zendron Manufacturing Limited will implement the Kaizen philosophy to drive

continuous improvement. Everyone will be encouraged to give feedback on
inefficiencies as was done at NUMMI where Toyota's approach allowed workers to
suggest improvements which were implemented quickly (Langfitt et al., 2023). With
an andon cord system Zendron can put quality over speed and reduce defects and
rework.

Reduce Waste
Zendron Manufacturing Limited will implement lean manufacturing techniques such
as value stream mapping as Toyota did at NUMMI to reduce waste (Langfitt et al.,
2023). By reducing inventory, eliminating idle time and streamlining the workflow
Zendron can reduce costs and improve overall efficiency (Ohno, 1988).

Empower Employees and Accountability

From the NUMMI experience where worker empowerment was key to success,
Zendron Manufacturing Limited will implement a system where employees can stop
production if defects arise as was done with the andon cord (Langfitt et al., 2023).
This will create accountability and allow workers to take ownership of the quality
control process which will improve morale and productivity.

Culture for Long Term Growth

The NUMMI podcast shows that cultural change is key to long term success. At
Zendron Manufacturing Limited leadership must promote open communication and
continuous improvement as Toyota did at NUMMI. Managers will be trained to create
a culture of trust and teamwork so workers feel they can contribute to the company's
goals (Langfitt et al., 2023).

3. Anticipated Challenges and Mitigation Strategies

Resistance to Change

One of the challenges we will face at Zendron Manufacturing Limited is resistance to

change, as was the case at other GM plants like Van Nuys which struggled to adopt
the NUMMI approach (Langfitt et al., 2023). Workers used to traditional ways of
working may resist the introduction of TPS principles.

To mitigate this we will invest in full training programs to show the benefits of the new
system, like NUMMI sent workers to Japan to see Toyota's operations for themselves
(Langfitt et al., 2023). Clear communication from leadership will be key to workers
understanding why and what's in it for them.
New Processes

Another challenge will be integrating new processes into Zendron's current

operations, especially getting suppliers to support just-in-time production. NUMMI's
success was partly due to its relationships with high quality Japanese suppliers
which may be hard to replicate (Langfitt et al., 2023).

To address this we will work closely with our suppliers, encouraging them to adopt
lean principles and offering incentives for process improvements. By getting our
external partners aligned with us we will prevent supply chain inefficiencies from
undermining internal process improvements.

Conclusion
The NUMMI podcast teaches you how to turn a struggling factory into a high
performing one using value based decision making. By applying TPS principles -
continuous improvement, waste reduction and employee empowerment - Zendron
Manufacturing Limited can fix its problems and set itself up for long term growth.

Implementing these changes will require a cultural shift and strong leadership but the
long term benefits of increased productivity, lower costs and better products make
this change necessary. Zendron Manufacturing Limited's journey to operational
excellence will follow the NUMMI path and make it a leader in its industry.

References
1. Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the
World’s Greatest Manufacturer. McGraw-Hill.
2. Liker, J. K., & Meier, D. (2006). The Toyota Way Fieldbook: A Practical Guide
for Implementing Toyota's 4Ps. McGraw-Hill.
3. Langfitt, F., Reed, B., & Glass, I. (2023). NUMMI Podcast Transcript. This
American Life. WBEZ Chicago.
4. Ohno, T. (1988). Toyota Production System: Beyond Large-Scale Production.
Productivity Press.
5. Shook, J. (2010). Managing to Learn: Using the A3 Management Process to
Solve Problems, Gain Agreement, Mentor, and Lead. Lean Enterprise
Institute.