World-class manufacturing by Fiat. Comparison with Toyota Production System from a Strategic Management, Management Accounting, Operations Management and Performance Measurement dimension

Toyota Production System (TPS) and the derived lean production have cast a shadow over the models of world-class manufacturing (WCM). Yet, some groups such as Fiat have reinvented WCM. Fiat's WCM is quickly becoming a sort of alternative to TPS-lean production. By means of semi-structured interviews and a direct observation of the documentation of Fiat's model, this research wants to find the theoretical elements that underpin the model. The methodology is mainly based on grounded theory. The theoretical elements were coded and classified within four dimensions: strategic management, management accounting, operations management and performance measurement system. The four dimensions and their elements were compared for the first time with the same dimensions of TPS-lean production. Fiat's WCM seems to have a 'grand strategy' focused on quality and cost savings where quality must be reached with no trade-off with other strategies. Safety is pursued above all else and Fiat's WCM cannot be implemented without this first achievement. A particular system called 'cost deployment' measures wastes and losses on processes. The performance measurement system is structured and fosters day-by-day management as well as computer-based management. Furthermore, the performance measurement system is based on a complex and formal auditing and benchmarking process.