After Lean Production: Evolving Employment Practices in the World Auto Industry. - Review - book reviews

Administrative Science Quarterly,  Sept, 1999  by John E. Delery

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Thomas A. Kochan, Russell D. Lansbury, and John Paul MacDuffie, eds. Ithaca, NY: Cornell University Press, 1995. 349 pp. $19.95, paper.

After Lean Production is an edited volume that presents the results of an ambitious project to uncover whether lean production systems have become dominant in the world auto assembly industry as was predicted by Womack, Jones, and Roos (1990) in The Machine That Changed the World. Through broad survey data and in-depth case studies, the authors show that although lean production systems do seem to be diffusing throughout the world, there is much variation not only across countries and firms, but within firms as well. They argue quite persuasively that to understand the adoption of manufacturing and employment systems consistent with the lean production paradigm, it is imperative that one take a multiple stakeholder approach that truly acknowledges the influence of exposure to international competition, employer preferences and culture, unions, and governments. It is only by understanding these influences that we can understand the variations in production and work systems adopted throughout the world.

The book begins with an overview of large-scale survey data collected as part of the International Motor Vehicle Program conducted at the Massachusetts Institute of Technology. This overview provides greater descriptive information than that in other publications from the program (MacDuffie, 1995; MacDuffie and Pil, 1996). In this way, the reader is provided with the broad background of trends in the adoption of lean production processes throughout the world on which to place the evidence from the numerous case studies that follow. The bulk of the book consists of thirteen chapters providing case studies of auto assembly plants in Japan, the United States, Canada, Germany, the United Kingdom, Italy, Spain, France, Sweden, Australia, South Africa, Brazil, and Korea. The rich data provided by these studies are a major strength of the book. These studies provide evidence that the lean production system is, in fact, spreading throughout the world. The variety of systems found suggests that firms are not simply choosing between mass production and lean production but, rather, are implementing parts of each system.

In an overview of their longitudinal survey data, MacDuffie and Pil conclude that four types of plants are emerging in the industry. The stable and lean plants are those Japanese-owned plants, both in Japan and abroad, that were early adopters of lean production and continue to use this approach with great success. The rapid move to lean plants are those in Europe and other regions that are relatively new to the industry and have been quick to adopt parts of lean production systems, although not the entire system. The U.S.owned plants in North America have been slow to adopt lean production and in many cases have reverted to traditional mass production. These sticking with tradition plants have made only modest progress on quality and productivity. Finally, the hybrids are plants that have production systems that incorporate aspects of both lean and mass production systems. Thus, while there is relatively convincing evidence that lean production systems may increase quality and productivity, organizations, for a variety of reasons, have not fully adopted this approach.

In the conclusion, the editors offer a variety of forces that appear to have influenced the adoption of production systems in the industry. They argue that exposure to international competition increases the pressure to adopt lean production practices because these practices improve product quality, productivity, and flexibility. Employers, however, may react to these pressures in differing ways. Some adopt practices quickly, while others focus on keeping profitability high in their most profitable lines and fail to adopt any part of a lean production system for fear of a disruption. Unions may also influence the adoption of lean production systems, and the effect of unions is not universal. The historical industrial relations context at the plant is argued to be a driving force. Along with these forces, government policies play a crucial role. Some governments have erected barriers that limit international competition for their auto industries. These forces together appear to have shaped much of the variation in production systems today.

One of the major strengths of this book is the variety of research presented. The broad survey approach to studying lean production presented by MacDuffie and Pil provides a perfect backdrop for the numerous case studies from around the world presented by various authors. Using this approach, the book provides a very detailed picture of the work systems and employment practices in the world auto industry. This was an impressive undertaking.

The book highlights the multitude of factors influencing organizational decision makers. Researchers attempting to study the diffusion of other organizational innovations, such as total quality management techniques and high performance work practices, should gain from the wealth of data and insight contained in this study. My major complaint with the editors is that they do not go far enough in drawing parallels to the study of other innovative work systems in other industries. While there are factors that make auto assembly plants somewhat unique (e.g., high rate of unionization), there are many similarities in other respects to many production facilities and other work places.