A comparison of the ‘American System of Manufactures’ circa 1850 with Just in Time methods

Abstract

AbstractThe introduction of Just In Time methods in American business often raises issues of cultural change. These questions may be eased by recognizing that JIT shares many characteristics with methods used in the US during the 1800s. A comparative analysis of the American System of Manufactures ca. 1850 with Just in Time systems shows significant similarities in their development and characteristics. Parallels to their reliance on specialised plant and equipment are described, together with the emphasis on the manufacturing importance of quality, recognition of the impact of resource endowments, cultural and behavioural characteristics, use of appropriate facility layout, and general organizational and structural arrangements. Differences arising from reward systems, labour mobility and a number of technical aspects such as power generation and distribution systems are also analysed. The American System of Manufactures provided companies using JIT with a sophisticated managerial and technical capability. Companies that developed and used the American System of Manufactures in the mid‐1800s share many of the characteristics of successful companies today.