From Mass Production to Lean Production – 1980s onward
• Lean Production uses less of everything compared with mass production
• Half the human effort in the factory
• Half the manufacturing space
• Half the investment in tools
• Half the engineering hours to develop a new product in half the time
• Half the needed inventory on site
The goal of lean production is perfection
• Continually declining costs
• Zero defects
• Zero inventories
• Endless product variety
Japanese Automobile Production, 1955-1984
Year Production
1955 68,932
1960 481,551
1965 1,875,614
1970 5,289,157
1975 6,941,591
1980 11,042,884
1984 11,464,920
The Reagan Administration and a Possible Trade War with Japan
• Voluntary Restraint Agreement, 1982
• Japanese Car Sales were to be kept at the 1979 level
• Limitations worked out to 1.68 million vehicles in 1982, 1.83 in 1983, 1.85 in 1984
• BUT – did these restraints – that lasted to the 1990s, buy time?
Year Leaded Regular, nominal
Leaded Regular, Real, in 2000 Dollars
Unleaded Regular, Nominal
Unleaded Regular, Real, in 2000 Dollars
1949 .27 1.64 NA NA
1955 .29 1.55 NA NA
1970 .36 1.30 NA NA
1975 .57 1.49 NA NA
1979 .86 1.73 .90 1.82
1981 1.31 2.22 1.38 2.33
1988 .90 1.19 .95 1.25
1995 NA NA 1.15 1.25
2000 NA NA 1.51 1.51
2003 NA NA 1.59 1.50
2005 NA NA 2.30 2.03
2007 NA NA 2.80 2.34
Table: Retail Motor Gasoline Fuel Prices, Selected years, 1949-2007. Energy Information Administration/Annual Energy Review 2007
GM’s Spending Spree During the 1980s
• Roger’s Smith’s strategy to diversify and Go Hi-Tech
• 1984 Purchase of Electronic Data Systems (EDS)
• 1985 purchase of Hughes Aircraft
• 442 billion between 1980 and 1985 on new factories , tools, and equipment
A Similar Spending Spree at Chrysler
• Gulfstream Aerospace, 1985
• Finance America, 1986
• Lamborghini, 1987
• Thrifty, Dollar, General and Snappy Car Rental
• American Motors, 1987
• But – no money for new models – just a new “skin” or dashboard
Robots: 26,000 in use by 1987 in the U.S.
• Flexible robotics thus has reconciled Fordism and Sloanism, with truly revolutionary implications for automobile manufacturing.
• The result: more diversity of product, manufacturing techniques are more precise, quality improved, labor costs reduced.
Mass Production vs. Lean Production, 1986, GM vs. Toyota
GM, Framingham, MA Toyota, Japan
Gross Assembly Hours per Car
40.7 18
Defects Per Car 130 45
Assembly Space Per Car
8.1 4.8
Inventories of Parts 2 weeks 2 hours
Japanese Assembly Plants in North America, to 1989
Firm Location 1989 Production Capacity
Honda Marysville,OH; East Liberty, OH; Alliston, ON
351,670 360,000
NUMMI, Toyota/GM Fremont, CA 192,235 340,000
Toyota Georgetown, KY; Cambridge, ON
172,000 290,000
Nissan Smyrna, TN 238,640 480,000
Mazda Flat Rock, MI 216,200 240,000
Diamond Star, Chrysler/Mitsubishi
Bloomington, IL 91,839 240,000
SIA, Subaru/Isuzu Lafayette, IN 120,000
CAMI, GM/Suzuki Ingersoll, ON 200,000
North American Assembly Plants Opened or Closed by American-Owned Automobile Companies, 1987-1990
Company Plant Year Closed
GM Detroit 1987
GM Norwood,OH 1987
GM Leeds, MO 1988
Chrysler Kenosha, WI 1988
GM Pontiac, MI 1988
GM Framingham, MI 1989
GM Lakewood, GA 1990
Chrysler Detroit 1990
Chrysler St. Louis 1990
GM Pontiac, MI 1990
Radar Love (1973)
• I've been driving all night, my hands wet on the wheelThere's a voice in my head that drives my heelIt's my baby calling, says I need you hereAnd it's a half past four and I'm shifting gear
When she is lonely and the longing gets too muchShe sends a cable coming in from aboveDon't need no phone at all We've got a thing that's called radar loveWe've got a wave in the airRadar love
The radio is playing some forgotten song:Brenda Lee's "Coming on Strong"The road has got me hypnotizedAnd I'm speeding into a new sunrise
When I get lonely and I'm sure I've had enoughShe sends her comfort coming in from aboveWe don't need no letter at all We've got a thing that's called radar loveWe've got a line in the skyRadar love
“Low Rider” – War (1975)
All my friends know the low rider
The low rider is a little higher
Low rider drives a little slower
Low rider is a real goer
Low rider knows every street, yeah Low rider is the one to meet,
yeah Low rider don't use no gas now Low rider don't drive too fast
Take a little trip, take a little trip Take a little trip and see
Take a little trip, take a little trip Take a little trip with me
Low Riding is About:
• Passion• Corazon (heart)• Respect
• Lowriders speak to the importance of visualizing and communicating cultural identity
• Vehicles are a means of cultural expression within an urban landscape
What is a Lowrider?
• Low to the ground. With a setup to adjust ride height
• A fantastic candy paint job
• Chrome features
• Customized upholstery
• SOUND
Chicano and Black Culture
• Zoot Suit Culture 1940s
• Swing and jazz Scene 1940s and 1950s
• R&B Scene 1960s and 1970s
• A resistance to Cultural Conformity!!
Hydraulics
• First introduced in 1958 by Ron Aguirre, A Chicano from LA
• Surplus WWII plane parts, hydro air pumps and dumps (used for wing flaps)
• Police often targeted lowriders during 1960s
Lowriding as a Social Activity
• A family tradition
• Fostering fraternal realtionships
• Blood relatives or neighborhood connections
• Clubs – the Dukes of SoCal
• Help! The devil's in my car.Help! The devil's in my car.Help! The devil's in my car.Ho, devil's in my car, whoa please.Please! Leave me alone!
We're really tearin' tar.We're goin' 90 miles an hour.Ho! He's drivin' me crazy.He's drivin' me to Hell now.He's pointing his pitchfork at me.He's in the front seat of my car!He's taking over!oo, he ripped my upholstery.He's at the weel.Help! The devil's in my car.Help! He's drivin' too far.(scream!) Ooooooh!
Whoooa! I can't lock the door, I can't put on my safety belt.There's nothing for me to do but yell HELP! Devil's in my car.I'm goin' to hell in my old Cheverolet, I don't know which way.Oh Help! Devil's in my car. Yeah Yeah. He's gone too far.I won't see ya tomorrow. I won't see ya anymore.He's got his cloven hoof on the clutch.Oh! Oh! I'm sitting on his tail.