Fernando Fuster-Fabra's Blog

GENERAL MOTORS: OUTCOME OF TQM REJECTION IN THE ‘60s | April 30, 2009

The recent announcement of GMC’s plants and work force in the U.S.A. is the culmination of its erroneous posture toward the recommendations of W.E. Deming as to manufacturing processes. In spite entrepreneurs refusing to accept the fact that uncorrected errors have a cumulative effect on business development, History shows time and again that advances in management techniques cannot be continuously ignored. Innovation is not only about machines, patents, IT & Biomedicine. It has even a more relevant implication when we refer to innovation in decision-making processes that enhance competitiveness by means of efficiency improvement based on talent management & transformation.

 

Deming set out the guidelines that today are known as TQM but this visionary had to travel far from his homeland in order to implement his theories. The arrogance of the Detroit magnates ignored Deming’s proposal in their obvious blindness at medium-long term effective executive management of U.S. automotive industry supremacy at the middle of the past century. Thus, Deming set up his Total Quality laboratory in far-away Japan where Japanese entrepreneurs listened and applied his teachings. From said relationship came into practice such techniques such as Kaizen and Just-In-Time. Today, no one doubts about Deming’s teachings and TQM techniques are widely extended worldwide. I had the opportunity to live said experience personally as an engineering student, recalling Deming’s sadness at not having convinced his own countrymen in the car manufacturing business.

 

 

downdtrend2

 

 

It was not until the ‘80s that the U.S. automotive industry called Deming to aid them through what was their first crisis. By then, TOYOTA had taken on a head-start of two decades with other Asian car manufacturers following suit. Detroit had lost its automotive industry supremacy.

 

Therefore, it is not strange today that GMC has had to admit its irreversible entrepreneur deterioration announcing the closure of 16 plants and the laying-off of 21.000 workers. The disappearance shortly of one of its oldest trademarks – PONTIAC – must have been a hard decision to take. GMC, like its other American competitors, FORD & CHRYSLER, has had a continued exercise of arrogance since the days of Deming’s professional self-exile to Japan. Today, GMC has been forced to bow down in humiliating defeat due to its lack of vision and effective talent management.

 

 

Madrid, April 30, 2009

 

      

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4 Comments »

  1. [...] Original post by fernandofusterfabra [...]

    Pingback by GENERAL MOTORS: OUTCOME OF TQM REJECTION IN THE ‘60s — April 30, 2009 @ 3:06 pm

  2. Watch out for the press conference that will let the cat out of the bag. Obama means business and business executives must face facts – they are ages behind adequate Human Resources management techniques for effective business practices in the New Millennium. I thought I had to add this comment for readers just before the news is realeased.

    Comment by Fernando Fuster-Fabra — April 30, 2009 @ 4:08 pm

  3. Chrysler has had to bow down too. Will the merger with FIAT be the right solution? You may be right that President Obama means business. The 30-day grace period seems to indicate so.

    Comment by Leonard E. — May 1, 2009 @ 9:27 pm

    • The alliance with FIAT seems CHRYSLER’s only way out in the 30-day time limit established by Obama at the press conference. The smaller stockholders have fallen out of the deal but the White House must have some hold on the larger ones and the executives to pressure them into the merger. FIAT can contribute towards a more sensible production of bantam cars in which the american manufacturer may not be too well placed. With the crisis, cheaper models consuming less fuel will be in greater demand and easier to sell. Definitely expensive sedans will slowly disappear.

      Comment by fernandofusterfabra — May 2, 2009 @ 5:16 pm


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About author

Industrial engineer dedicated to project management and consultancy all over the world. Keen interest and deep respect for other cultures, beliefs and traditions, as the base of a shared development in a new atmosphere of peace and progress for all. Interested in contributing to a better more tolerant world where mutual respect leads to dialog and understanding. Firm believer in the the use of talent management & transformation to attain a more effective professional exercise of competitive executives & workers in quality of environment & life, working towards sustainable development objetives in this New Millennium. This in our opinión is the path towards the solutions of the world's global crisis. Publications at : http://stores.lulu.com/FusterFabra Other Blogs: http://www.blogger.com/profile/11431742 http://fernandofusterfabrasblogesp.wordpress.com/ (articles in Spanish) http://thoughtspensamientos.wordpress.com/

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