Preparing the Way for Wisdom in Organizations – Part 5

Continuing the set of six tiny essays inviting reflection about the construction of the conditions and situations in which wisdom can be cultivated and exercised in organizational settings.

“Inventing” Waste

Historic inventions are often built from historic difficulties, and they always involve the invention of new distinctions. We have posted about the “Five Great Wastes” before, here.

Let us give two examples in which critical new distinctions of historic inventions have to do with what people at the time thought of as “wastes.”

Henry Ford, Mass Production, and the Model T

At the turn of the 20th century automobiles were expensive toys available only to the very rich. Henry Ford invented practices that we summarize as “mass production” and the “Model T.” He succeeded thereby in making automobiles less expensive and more accessible to the average American worker. At the same time, he produced a way of doubling the income of American Workers, thereby giving them the income to purchase the Model T. Ford’s new system produced cars quickly and so efficiently that it considerably lowered the cost of assembling the cars. He decided to pass this savings along to his customers, and in 1915 dropped the price of the Model T from $850 to $290. That year, he sold 1 million cars. (Parts of the story from

Taiichi Ohno and the Toyota Production System

At the end of the Second World War, the people of Japan were in terrible trouble, their morale, productive capacity, and international relations demolished. An engineer named Taiichi Ohno, in the enterprise today known as Toyota, began the task of building a new capacity for Japanese production on top of Henry Ford’s designs, with some important additions. For example, Ford incorporated everything into one plant; Ohno designed for operation in a network. The operational heart of Ford’s designs was the way the engineers designed the coordination of the work on the assembly line (the employees found the repetition boring and only stayed because of what Ford called the ‘wage motive.’) Ohno centered his design in processes that built the capacity of each person on the production floor to take responsibility for the quality and coordination of their work. His invention became the foundation of the quality movement that swept the world starting in the 1970s and 80s.

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