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The NUUMI Proof: Same Workers, Different Systems, Opposite Results

The NUUMI Proof: Same Workers, Different Systems, Opposite Results

Published 7 months ago
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You can watch the author express this essay on Youtube.

Thanks for reading The Long Game by Dr. Venki Padmanabhan! Subscribe for free to receive new posts and support my work.

I know what some of you are going to say.

When I argue that the dominant manufacturing operating model systematically suppresses frontline intelligence — that there are millions of workers in American factories and hospitals, and warehouses and fulfillment centers whose problem-solving capability has been deliberately designed out of their jobs — some of you will call it romantic nonsense. You’ll say these are simple jobs performed by people the labor market sorted there. That there’s no hidden intelligence being suppressed. That the system is just efficient.

I welcome that objection. Because the evidence against it is overwhelming. And I’m going to spend the next eight weeks laying it out — not with theory, not with philosophy, but with data, natural experiments, and documented performance outcomes that the skeptics will have to reckon with.

We start with the strongest piece of evidence I know. A story so clean in its experimental design that if you proposed it as a controlled study, your IRB would reject it as too good to be true.

We start with NUMMI.

The Worst Plant in America

By the late 1970s, General Motors’ Fremont Assembly Plant in California had earned a reputation that even GM’s own leadership didn’t dispute: it was the worst plant in the system.

Absenteeism ran above 20 percent. On some mornings, so few workers showed up that supervisors had to cross the street to the local bar to drag people back to the line. Wildcat strikes were routine. Workers drank on the job, did drugs on the job, and — as multiple firsthand accounts confirm — had sex in the plant during shifts. Sabotage was a sport. Workers left bolts deliberately untightened. They stuffed Coke bottles inside door panels so the cars would rattle and annoy customers. Cars regularly rolled off the end of the line inoperable and had to be towed away for repairs.

Under the union contract, workers were virtually impossible to fire. Management and labor existed in a state of cold war. The plant was, by any reasonable measure, a disaster.

In 1982, GM shut it down.

If you stopped the story here, you’d have a clean narrative. Bad workers. Bad culture. Bad outcomes. The labor market sorted these people into a factory, they proved themselves incapable, and the rational response was to close the doors.

That narrative is wrong. And what happened next proved it.

The Experiment Nobody Would Have Designed

In 1984, Toyota and GM reopened the Fremont plant as a joint venture called New United Motor Manufacturing, Inc. — NUMMI. Toyota would manage the plant. GM would contribute the facility. Both companies would sell the vehicles produced there.

Here is what Toyota did that made this a natural experiment of extraordinary power:

They rehired the same workforce.

Over 85 percent of NUMMI’s initial employees were UAW members from the old GM Fremont plant. Not the good ones. Not a carefully screened subset. The same workforce — including, at the UAW’s insistence, the same union leadership that had presided over GM’s worst operation.

GM was against rehiring the militants. Toyota agreed to it anyway. They believed their system could work with any workforce — a hypothesis they were about to test with the hardest possible case.

Toyota did one other critical thing before reopening. They sent groups of these workers to Toyota’s Takaoka plant in Japan. Not for a PowerPoint presentation. Not for a classroom seminar. They put them on the assembly line. They let them work inside a system that treated every worker as a problem-solver, that gave them authority to stop the line when they saw a defect, that asked for their ideas and implemented them.

The workers came back t

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