Design Rules, Volume 2: Chapter 10—Variations on the Theme of Mass Production

Abstract

The purpose of this chapter is to explore variation among organizations employing mass production technology. To allow for an apples-to-apples comparison, I examine organizations using essentially the same technologies, making similar products, and competing in the same markets. Specifically, I look at the organizational differences among the largest automakers in the U.S. and Japan.

I focus first on Ford from 1910 to 1930, then General Motors from the 1920s through the 1960s, then Toyota (and other Japanese automakers) from the 1960s through 2000. The differences between these organizations indicate that, while technology shapes organizations within broad limits, it does not determine an organization’s complete design or its long-term competitive success or failure.