From Taylorism to Toyotism: The Evolution of Industrial Production
The Second Industrial Revolution
In the early twentieth century, the Second Industrial Revolution was pioneered by countries like the USA and Germany. This era was characterized by increased mechanization, with machines becoming more effective. This led to mass production, and energy sources shifted from coal to oil and electricity. Industries multiplied and diversified with the invention of new tools, engines, machines, and materials. As factories grew larger and more complex, a need arose for a more scientific organization of production.
The Rise of Taylorism
A key promoter of this change was Frederick Taylor. His system, known as Taylorism, involved management deciding and distributing specific tasks to each worker, who was then limited to performing only that work. A supervisor was in charge of ensuring workers completed their assigned jobs. This technique was famously applied by Henry Ford in his assembly lines.
The Current Technological Revolution
The current technological revolution is based on developments in microelectronics, computing, robotics, and telematics. Modern machines incorporate numerical computation, making them virtually independent. A primary goal of this revolution is energy savings. It aims to overcome the limitations of the Taylorist system, as tasks on a mechanized assembly line can now be performed by robots. This shift can lead to unemployment for unskilled workers.
The Toyotist System
Work is now often organized according to a new system called Toyotism. In this system, workers operate in teams responsible for the entire manufacturing process of a product. This approach encourages workers to be more motivated, take more initiative, and be more creative. Additionally, workers in this era must be prepared for geographic mobility (relocating for work) and occupational mobility (changing roles or skills). Production also adapts to the market. The Just-in-Time (JIT) method is now used, which means production is aligned directly with demand.
Industrial Concentration
Specialization and Concentration
Industry is increasingly specialized. Instead of handling the entire production process, companies often focus on a single part, which leads to greater interdependence among businesses. Industrial concentration means that only companies with strong technical and financial resources tend to survive.
Horizontal and Vertical Concentration
Horizontal concentration involves merging with or acquiring other companies that produce or sell the same product. Vertical concentration involves associating with companies that manufacture products at different, successive stages of a single technological process. A holding company is a financial entity or banking group that controls the majority of shares in many different companies.
Geographic Distribution of Industry
Classic Industrial Location Factors
To understand why industries are located in certain places and not others, we must consider several factors.
Transportation Costs
The cost of transportation depends on several factors, including:
- Distance: While the cost per unit may decrease over longer distances, the total cost increases. Early in industrialization, this was a critical factor, leading industries to locate near their raw materials to minimize transport expenses.