Lean Manufacturing Management

Lean manufacturing management technique was also borrowed by US automobile manufacturers from their Japanese competitors. Lean manufacturing is characterized by emphasis being placed on product quality in the first place. The approach became integrated in various stages of the production process and also relies on suppliers and subcontract to produce the greatest proportion of value added.

Finally, speed of processing and delivery are emphasized. At the same time, central feature of lean manufacturing remains on the supplier structure that significantly reduces the number of companies a manufacturer deals with directly. Consequently, lean manufacturing is characterized by close relationships as well as frequent interactions with suppliers. Thus, in 1970th there was a process of reorganization of the supply chain in United States. In Japan auto assembly and production parts are located in several core industrial regions such Tokyo and Yokohama. At the same time, concentration of suppliers in United States is not as intensive as in Japan.

Thus, implementation of the new management technique is closely related to size of the country. In United States, there are two types of suppliers – captive and independent. When lean manufacturing management was implemented in the United States by the Big Three automobile manufacturing companies, captive suppliers were concentrated in the Midwest. Even today, as a consequence of implementation of the new technique, geographical representation of suppliers remains similar to the one that was introduced in 1970th. While Ford historically operated with a centralized model of production in Detroit and Dearborn, now company's parts are clustered in Michigan and Ohio.

On the other hand, General Motors used to have multiple centres in Michigan, but soon after implementation of the new management technique, the company moved the operation process to the Midwest by purchasing independent supplier companies. Thus, before World War II, captive suppliers of automobile manufacturers have been largely clustered in the Great Lakes Region. However, after the new strategy was implemented, unskilled production process was moved to the south.