Benefits Galore, But Is It Reaching Companies That Could Benefit the Most?

Over the course of its existence, the auto industry has contributed to historical productivity improvements in the economy. For example, in earlier decades, the impacts of Henry Ford’s mass production system and Alfred Sloan’s innovative corporate organization were seen as quantum leaps in productivity and efficient management.

Fast forward to the mid-1980s when an operating philosophy referred to as the Toyota Production System (TPS) has caught the attention of many in the automotive industry. TPS and its embodiment of lean production, elimination of waste, and continuous improvement help define a culture within Toyota. As discussion and interest in TPS and its generic title—lean production—grew, almost every other automaker adopted the lean principles, in order to remain competitive. 

The impact of the lean principles on the U.S. economy isn’t, of course, restricted to just the auto industry.  Many companies throughout U.S. manufacturing and, indeed, in the service, retail, healthcare, and even governmental sectors, benchmark Toyota and the lean principles for productivity improvement. 

The U.S. economy has experienced historically strong productivity growth since 1990.  Although the source of this growth can be partially attributed to the greater use of information technology, some observers also point to the effect of the lean principles on company practices, as having contributed substantially to the increased productivity throughout the entire U.S. economy. 

This session will feature a panel of speakers who will discuss the diffusion of the lean principles culture and its impact on large and small businesses within and outside of the automotive sector.  Speakers will be asked to especially address how these principles can be disseminated further to smaller companies who could most benefit from adoption of lean principles.   

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