Buying Machine That Changed the World

The title sets the tone the authors carry throughout the book. A little too much glorifying. A little too much hype. Yes, what Toyota and others did was impressive. But no, they did not change the world. In my opinion, not even close.

And this book is dated. In fact, though written in the early '90s, it reads more like many of the books written about Japanese management in the early '80s. Books like "Japan As Number One." Or "Trading Places." At the time, the Japanese were thought to be able to do no wrong.

Now, of course, we know that Japanese executives and managers are mere mortals too. Toyota has certainly done better than most Japanese companies over the last 15 years. And part of the reason -- a big part probably -- has been the effectiveness of their management in areas like lean production. But even without the benefit of the hindsight we now have, the authors of this book should have realized that their unstinted praise was not warranted. Even for the brains behind Toyota.

Still, this book is the best I have found on the history of the "Industry of Industries." It traces the history of the automobile industry from craft production to mass production to lean production. No other book I have read has done that so well.

And for an academic book, The Machine That Changed the World is easy to read. It keeps a careful balance between informing the reader and keeping the reader's interest. Most writers, particularly of works like this, tilt too much one way or the other. Either too dry and pedantic or too light and entertaining. A happy medium is hard to achieve.

Where does the auto industry go from here? Lean production is no longer exceptional. It has become the rule. But it seems to have run its course.

The future of the automobile industry may lie in "collaborative production." Major automakers concentrate on sales and service, not production. Suppliers develop specialized skills in technologies from hybrid power trains to drive-by-wire control systems. And everyone sells to everyone else. Technology becomes less important than brand.

If that is the case, Toyota may still lead the pack. In Business Week's list of the top 100 global brands, Toyota leads all carmakers at number 7. No one has caught Toyota napping on the increasing importance of brand.

Even so, Toyota fiercely defends the idea that is a motor company, not a sales company. Innovative technology and excellent manufacturing have been much more of a focus than sales. Will it be able to adapt if the industry does change?

An interesting question that we should see answered in the next few years. Like many good history books, The Machine That Changed the World gives us hints as to what that future will be.

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