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Abstract There has been growing international interest in the “lean production” notion with present Japanese car plants as the paragon of this work system. Yet despite its Japanese origins many commentators have taken for granted that this Japanese notion can readily be transferred to other contexts and that it is a preferable alternative to Fordist mass production. Lean management involves continuous improvement, just‐in‐time techniques, total quality management, and team based work organization. These techniques have led to demonstrable major improvements in the efficiency of manufacturing enterprises in Southeast Asia, Japan, Europe, and the U.S., as shown by numerous studies. However, there has been little research on the possible transferability of such Japanese management strategies to Australia, which does not have a reputation for having highly committed workers or compliant unions. Therefore, the introduction of lean management in Australia deserves examination. After summarizing the context of the Australian car industry and the literature on lean production, we report on our study of a major car plant, which is based on interviews, observation, and a survey of employees. We were fortunate in having a high degree of cooperation from the company, unions, and government, because this independent study was initiated jointly by these three parties, which is relatively unusual for such research. Although we report several criticisms of lean production, we conclude that, especially when coupled with industry restructuring, lean production can potentially contribute to a substantial improvement in manufacturing competitiveness. © 1995 John Wiley & Sons, Inc.
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