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NUMMI
New United Motor Manufacturing, Inc. (NUMMI) was an American automobile manufacturing company in Fremont, California, jointly owned by General Motors and Toyota that opened in 1984 and closed in 2010. After the plant was closed by its owners, the facility was sold to Tesla, Inc. and reopened as a 100% Tesla-owned production facility in October 2010, becoming known as the Tesla Factory. The plant is located in the East Industrial area of Fremont next to the Mud Slough between Interstate 880 and Interstate 680. NUMMI yearly production peaked at 428,633 vehicles in 2006. History Background Before NUMMI, the site was the former Fremont Assembly that General Motors operated between 1962 and 1982. Employees at the Fremont plant were "considered the worst workforce in the automobile industry in the United States," according to a later recounting by a leader of the workers own union, the United Auto Workers (UAW). GM as a company was departmentalized (design, manufacturing) as ...
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Tesla Factory
The Tesla Fremont Factory is an automobile manufacturing plant in Fremont, California, operated by Tesla, Inc. The facility opened as General Motors' Fremont Assembly in 1962, and was later operated by NUMMI, a GM–Toyota joint venture. Tesla took ownership in 2010. The plant manufactures the Model S, Model X, Model 3, and Model Y, employing 22,000 people . Background Tesla had planned for an assembly factory in Albuquerque, New Mexico, as a central location for shipping. Construction was supposed to begin in April 2007, but was canceled. A separate greenfield factory to be built in San Jose, California was also announced. However, the cost was prohibitive, and the company looked for alternatives. Tesla initially also dismissed NUMMI for being too big and costly. Some of the current facilities were operated as the GM Fremont Assembly from 1962 to 1982, and between 1984 and 2009 was used by New United Motor Manufacturing, Inc. (NUMMI), a joint venture between General Mo ...
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Fremont Assembly
Fremont Assembly was a General Motors automobile factory in Fremont, California in the San Francisco area, replacing the older Oakland Assembly. Groundbreaking for the plant occurred in September 1961, and the plant produced its first vehicle on May 1, 1963. Production continued through March 1, 1982, when the plant was closed after production problems. After closure, the plant was refurbished and reopened as the more successful NUMMI (New United Motor Manufacturing, Inc.) joint-venture between GM and Toyota between 1984 and 2010, and later became the Tesla Factory in 2010. History Chevrolet opened the auto industry's first West Coast assembly plant, Oakland Assembly, in 1916, with production of the Chevrolet Series 490 began on September 23rd of that year. In the 1940s, Oakland Assembly would contribute to the war effort during World War II building the Chevrolet Fleetline for the military and also producing munitions, aircraft engines, guns and billions of pounds metal forgin ...
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Tesla, Inc
Tesla, Inc. ( or ) is an American multinational automotive and clean energy company headquartered in Austin, Texas. Tesla designs and manufactures electric vehicles ( electric cars and trucks), battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services. Tesla is one of the world's most valuable companies and remains the world's most valuable automaker with a market capitalization of more than US$550 billion. In 2021, the company had the most worldwide sales of battery electric vehicles and plug-in electric vehicles, capturing 21% of the battery-electric (purely electric) market and 14% of the plug-in market (which includes plug-in hybrids). Through its subsidiary Tesla Energy, the company develops and is a major installer of photovoltaic systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3.99 gigawatt-hours (GWh) installed in 2021 ...
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Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 million vehicles per year. The company was originally founded as a spinoff of Toyota Industries, a machine maker started by Sakichi Toyoda, Kiichiro's father. Both companies are now part of the Toyota Group, one of the largest conglomerates in the world. While still a department of Toyota Industries, the company developed its first product, the Type A engine in 1934 and its first passenger car in 1936, the Toyota AA. After World War II, Toyota benefited from Japan's alliance with the United States to learn from American automakers and other companies, which would give rise to The Toyota Way (a management philosophy) and the Toyota Production System (a lean manufacturing practice) that would transform the small company into a leader in t ...
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Fremont, California
Fremont is a city in Alameda County, California, United States. Located in the East Bay region of the San Francisco Bay Area, Bay Area, Fremont has a population of 230,504 as of 2020, making it the fourth List of cities and towns in the San Francisco Bay Area, most populous city in the Bay Area, behind San Jose, California, San Jose, San Francisco, and Oakland, California, Oakland. It is the closest East Bay city to the high-tech Silicon Valley network of businesses, and has a strong tech industry presence. The city's origins lie in the community that arose around Mission San José (California), Mission San José, founded in 1797 by the Spanish under Padre Fermín Lasuén. Fremont was incorporated on January 23, 1956, when the former towns of Mission San José (California), Mission San José, Centerville, Niles, Irvington, and Warm Springs unified into one city. Fremont is named after John C. Frémont, a general who helped lead the American Conquest of California from Mexico and ...
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Joint Venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly Emerging market; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. According to Gerard Baynham of Water Street Partners, there has been much negative press about joint ventures, but objective data indicate that they may actually outperform wholly owned and controlled affiliates. He writes, "A different narrative emerged from our recent analysis of U.S. Department of Commerce (DOC) data, collected from more than 20,000 entities. According to the DOC data, foreign joint ventures of U.S. companies realized a 5.5 percent average return on assets (ROA), while those companies’ wholly owned and controlled affiliates ( ...
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Toyota Production System
The Toyota Production System (TPS) is an integrated socio-technical system, developed by Toyota, that comprises its management philosophy and practices. The TPS is a management system that organizes manufacturing and logistics for the automobile manufacturer, including interaction with suppliers and customers. The system is a major precursor of the more generic "lean manufacturing". Taiichi Ohno and Eiji Toyoda, Japanese industrial engineers, developed the system between 1948 and 1975. Originally called " just-in-time production", it builds on the approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno. The principles underlying the TPS are embodied in The Toyota Way. Goals The main objectives of the TPS are to design out overburden ( muri) and inconsistency ( mura), and to eliminate waste (muda). The most significant effects on process value delivery are achieved by designing a process capable of delivering the required res ...
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Division Of Labour
The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialised capabilities may include equipment or natural resources as well as skills, and training and combinations of such assets acting together are often important. For example, an individual may specialise by acquiring tools and the skills to use them effectively just as an organization may specialise by acquiring specialised equipment and hiring or training skilled operators. The division of labour is the motive for trade and the source of economic interdependence. Historically, an increasing division of labour is associated with the growth of total output and trade, the rise of capitalism, and the increasing complexity of ...
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1970s Energy Crisis
The 1970s energy crisis occurred when the Western world, particularly the United States, Canada, Western Europe, Australia, and New Zealand, faced substantial petroleum shortages as well as elevated prices. The two worst crises of this period were the 1973 oil crisis and the 1979 energy crisis, when, respectively, the Yom Kippur War and the Iranian Revolution triggered interruptions in Middle Eastern oil exports. The crisis began to unfold as petroleum production in the United States and some other parts of the world peaked in the late 1960s and early 1970s. World oil production per capita began a long-term decline after 1979. The oil crises prompted the first shift towards energy-saving (particular, fossil fuel-saving) technologies. The major industrial centers of the world were forced to contend with escalating issues related to petroleum supply. Western countries relied on the resources of countries in the Middle East and other parts of the world. The crisis led to stagnant e ...
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Joint Venture
A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly Emerging market; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. According to Gerard Baynham of Water Street Partners, there has been much negative press about joint ventures, but objective data indicate that they may actually outperform wholly owned and controlled affiliates. He writes, "A different narrative emerged from our recent analysis of U.S. Department of Commerce (DOC) data, collected from more than 20,000 entities. According to the DOC data, foreign joint ventures of U.S. companies realized a 5.5 percent average return on assets (ROA), while those companies’ wholly owned and controlled affiliates ( ...
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University Of Southern California
The University of Southern California (USC, SC, or Southern Cal) is a Private university, private research university in Los Angeles, California, United States. Founded in 1880 by Robert M. Widney, it is the oldest private research university in California. The university is composed of one Liberal arts education, liberal arts school, the University of Southern California academics, Dornsife College of Letters, Arts and Sciences, and 22 Undergraduate education, undergraduate, Graduate school, graduate, and professional schools, enrolling roughly 21,000 undergraduate and 28,500 Postgraduate education, post-graduate students from all 50 U.S. states and more than 115 countries. It is also a member of the Association of American Universities, which it joined in 1969. USC is ranked as one of the top universities in the United States and admission to its programs is considered College admissions in the United States, highly selective. USC has graduated more alumni who have gone on to w ...
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The Toyota Way
The Toyota Way is a set of principles defining the organizational culture of Toyota Motor Corporation. The company formalized the Toyota Way in 2001, after decades of academic research into the Toyota Production System and its implications for lean manufacturing as a methodology that could be adopted by other organizations. The two pillars of the Toyota Way are respect for people and continuous improvement. The philosophy was popularized by Jeffrey K. Liker in his 2004 book, ''The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.'' Subsequent research has explored the extent to which the Toyota Way can be applied in other contexts. Background The principles were first collated into a single document in the company's pamphlet "The Toyota Way 2001", to help codify the company's organizational culture. The philosophy was subsequently analyzed in the 2004 book ''The Toyota Way'' by industrial engineering researcher Jeffrey Liker, and has received attention ...
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