American industry is beginning to put its manufacturing house in order. Companies building high-volume standardized products like copiers, appliances, and automobiles are learning from their foreign rivals and emulating their commitment to ongoing product and process innovation. But one important segment of U.S. industry—job shop manufacturers—continues to postpone needed reforms. Many of these companies have been sheltered from foreign competition by their products’ custom nature and lack of mass market potential. Without an urgent competitive threat, job shop managers have been slow to overhaul their manufacturing operations—despite problems of mediocre quality, excessive lead times, unreliable delivery, and high costs.
A version of this article appeared in the March–April 1989 issue of Harvard Business Review.