Rebirth of American Industry [Paperback]

William H. Waddell (Author), Norman Bodek (Author)

Book Description

Publication Date: December 15, 2005

We have a certain amount of sadness as we read of the bankruptcy of Delphi Corporation, and the losses and downsizing of General Motors (GM) and Ford. GM and Ford were the world leaders in automobile manufacturing, the richest companies in the world. What happened? Could it have been prevented? And have they, and we, learned a very important lesson to not repeat the mistakes from past? The very purpose of this book is to examine what were the principle things that did go wrong and to give modern managers specific guidelines to think about today to be internationally competitive.

Editorial Reviews

Review

This book provides a prescription that should lead American companies to return manufacturing to our shores. -- Doug Nelson, President, APICS, Portland

This excellent book will make some enemies. It is outspoken, hard-hitting, and correct. -- Brian Maskell, author

From the Publisher

In my own personal journey, studying Toyota and the other leading Japanese manufacturers these past twenty five years, I was continually amazed at what I discovered and was continually puzzled why GM and Ford did not do what I did, learn from the best and then to forcefully apply the new methodologies in their companies.

On my first study mission to Japan in February 1981, I visited the American Embassy in Tokyo and met with the information officer. His job was to study the best Japanese technologies and to have that information translated to English to help American companies stay abreast of what was happening in Japan. I was furious at him to have not discovered what Toyota was doing to go from producers of "junk" to world class. His budget, millions of dollars, to spend on translations was hundreds times greater than mine.

Somehow, I was surely blessed to have met Dr. Shigeo Shingo, Mr. Taiichi Ohno, Dr. Ryuji Fukuda, Seiichi Nakajima, Dr. Yoji Akao, Hiroyuki Hirano, Shigehiro Nakamura, Bunji To-zawa, Iwao Kobayashi, Kenichi Sekine and others who were willing to share their information with Americans and allowed me to publish their Japanese books in English.

It shortly became obvious to me from my frequent visits to Japan, 63 as of this date, that the Toyota Production System (TPS) was the most important and the most valuable to study. At first, when I met Mr. Taiichi Ohno, vice-president of manufacturing at Toyota, I asked him to let me have things in writing about TPS. He said, "Norman, we don't have things written down, for it is always changing." I felt that he was just reluctant to share the information that was making Toyota so successful. But, I was perseverant. I wouldn't stop searching for information to share with companies in the West. I magically found Dr. Shingo, co-creator with Ohno of TPS, and he graciously allowed me to publish all of his books in English. After a few years Mr. Ohno also gave me permission to publish also his books in English.

But, why wouldn't GM and Ford do the same? Why wouldn't they locate, translate and publish everything available on Toyota? It is still a mystery to me. In 1984, Toyota decided to open a joint venture plant with GM, NUMMI, to share their production system with GM. Virtually, all of Toyota's secrets were now available to GM. Why didn't GM study carefully the JIT/LEAN concepts and apply them? And through the books I subsequently published, when I owned Productivity Press, most of what Toyota was doing was available to everyone.

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Product Details

• Paperback: 304 pages
• Publisher: PCS Press (December 15, 2005)
• ISBN-10: 0971243638
• ISBN-13: 978-0971243637
• Product Dimensions: 8.4 x 5.4 x 0.7 inches
• Shipping Weight: 12 ounces (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (11 customer reviews)
• Amazon Best Sellers Rank: #336,436 in Books (See Top 100 in Books)

Most Helpful Customer Reviews

9 of 10 people found the following review helpful

5.0 out of 5 stars Hard-hitting critique of the current state of Lean in America... and the opportunity December 20, 2005

By Kevin Meyer

Format:Paperback

Over the past several months you've probably enjoyed Bill Waddell's hard-hitting posts on Superfactory's Evolving Excellence Blog ([...]) as much as I have. His propensity to challenge the status quo with historical facts has been a breath of fresh air and has forced the lean community to think about the stability of its own foundation.

Bill, in collaboration with Shingo Prize winning author Norman Bodek, has just released a new book, Rebirth of American Industry - A Study of Lean Management. In it he uses his in-your-face style to take issue with several commonly-held lean beliefs, and the companies that mistakenly believe they are lean. The book has already received considerably acclaim from early reviewers.

Brian Maskell, President of BMA, Inc. and one of the leaders of the lean accounting movement, has this to say:

"This excellent book will make some enemies. It is outspoken, hard-hitting, and correct. The authors answer the question "whay have so few American companies successfully transformed themselves into lean organizations". They take us back to the origins of lean at Ford Motor Company and Toyota, and contrast them with the modern American manufacturer. The solutions advocated will be unpopular because they cut to the heart of "professional" management theory and show that the lean transformation must start not on the shop-floor but by active transformation in the executive offices...."

Tom Johnson, author of Relevance Lost and the Shingo Prize winning Profit Beyond Measure, had this to say in the forward he wrote for the book:

"The central concern of this book is to outline the core principles in the Sloan management model that GM adopted after 1920 and to show how adhering to those principles makes it virtually impossible for managers to understand and adopt the principles inherent in Toyota's so-called "lean" operating system. The book also does well at showing how the "magic" of MRP software after 1960 further disguised the dead-weight impact of overhead cost. The authors properly describe MRP as a sophisticated effort to rationalize the damage to sound operations caused by following the Sloan model. "

I have always been fascinated by the history of lean, and this book does not disappoint. However as Bill points out in his introduction, this is not a history book... it is a management book. In any case, the supporting stories are priceless and help drive home the fallacies of the Sloan/Dupont ROI model. Such as Chrysler having 400,000 cars in finished goods at one point which required them to rent the empty Ford plant at Highland Park - ironically the birthplace of lean manufacturing - and they still believed they achieved a profit. As he has on this blog, he takes the Shingo Prize to task for awarding prizes to operations like Delphi that ended up failing the bottom line gut test of lean: they didn't make money.

One of my favorite chapters is "The Illusion of MRP", perhaps because that's the battle I've fought at several operations. After a quick review of the history of MRP, Bill discusses the attempts to integrate lean with MRP... and correctly concludes that the only way to reconcile lean and MRP is to turn MRP off. Looking at it from Taichi Ohno's perspective, would a manufacturing company that was operating on a philosophy of lead times of zero and lot sizes of one have any use whatsoever for an MRP system?

I highly recommend this book. Read more ›

5 of 5 people found the following review helpful

4.0 out of 5 stars Don't let the price stop you February 26, 2007

By David Meier

Format:Paperback

First thing I thought (and anyone I mention this book to mentions) is: "For $47 this had better be a good book!" It is. Don't let the price stop you from buying it. I gave it 4 stars only because the printing and quality are not top notch- something I would expect in a book of this cost. But look at it this way, you are not spending the money on a fancy book, you are spending it on the CONTENT of the book. In this case, if you use the content wisely, it could in fact be worth millions.

As a full time lean consultant and author, I am continuously frustrated by the lack of real success in Lean throughout manufacturing. I intuitively understand what is at the root of the limited success, but this book makes it clear. Every "manufacturing" company in the world- with the exception of Toyota and maybe a few others- uses a measurement system that will drive the business in the opposite direction of lean. It is so ingrained that virtually everyone is in staunch support of the old method. So, in any company, lean "success" can only go so far until it bumps up against the standard "Sloan method" of management. That's when everyone starts to panic and the wheels fall off.

I have worked in numerous companies where everyone could see and measure (using lean measurement of waste and time) a process and understand that overall it was more efficient and lower cost, but when measured with the standard measurement methods it loses, and is not adopted. It is a classic case of the Emperors new clothes. We can all see that the Emperor is naked, but no one is willing to step up and fight the fight. We are simply outnumbered and the fight is sure career suicide. Why fight it?...

So we set up lean model areas, lean lines, and lean plants, and delude ourselves into believing that we have "become lean" but then in the next breath talk about "cutting heads" and "absorbing overhead" and really never change the organization (and never get the true benefits). We have all tried to make lean work within the context of the current system. We need a new system. This is not just "outside the box" thinking, it is starting with a completely new box, and it is not even a box. I have on a number of occasions been in plants that appeared lean. The superficial layer had all the lean bells and whistles, but closer inspection revealed a new facade plastered over decaying walls. The plant was no more lean, but had tape on the floor, painted floors, charts and graphs for wallpaper, and even one-piece-flow! But it was not lean because the lean work never made it to the people doing the work. It was all superficial.

As long as companies continue to use the Sloan model which views people as a variable expense (and as expendable at will), we will never achieve the true essence of lean- the power of the greatest asset. Toyota understands the power of the people and will say, "Only people can think. Only people can solve problems and make improvements. Only people can understand the desires of the customers. Therefore, people are our greatest strength."

I highly urge you to splurge on this book. Don't let the price keep you from buying it. You need to get it into the hands of your top leaders. Have discussion on what your current system drives you to do that is counterproductive. Keep pushing until everyone in your organization agrees that the current system of measurement and accounting needs to change, and then change it. It is the only way you will have true success with lean. If you do this book could be priceless. Read more ›

6 of 7 people found the following review helpful

5.0 out of 5 stars "Manufacturing is important." January 2, 2006

By Doug Nelson

Format:Paperback

Rebirth of American Industry is an important book. It blows the lid off many of the assumptions, processes, and metrics that have led our country down a road that has shipped millions of jobs overseas.

In order for the "Rebirth of American Industry" to take place, a great deal of pain will have to be incurred, unless we immediately challenge the existing norms and make some radical changes.

Death of waste, the elimination of all non-value added activities, must be pursued relentlessly. Birth of a new American heritage of producing with increased value to the customer, designing and delivering products, and providing services under world class conditions is mandatory.

In our free society the customer makes the choice of which products will be purchased and which will not. In a world of vast and instantly available information, with global competitors operating in our own backyards, the customer is indeed king. Companies that choose to ignore this fact do so at great peril.

Newsmagazines and commentators have blasted Wal-Mart, big box retailers, and global competition for our problems in manufacturing. The truth is that educated, knowledgeable customers with virtually unlimited choices wield more power than ever before. Our failures in manufacturing are a result of failing to meet the needs of these customers. In the words of Walt Kelly's Pogo "We have met the enemy - and he is us."

Just as the customer has been empowered under our free economy, we must move forward in educating and empowering our manufacturing employees to better serve that customer.

We must align our strategies, business processes, and performance metrics to the voice of the customer, and aggressively go after our leaner, more agile competitors....

This book provides a prescription that should lead American companies to return manufacturing to our shores, just as many of our global competitors have chosen to join us here. Read more ›