There are several body shops which are similar by size of workforce, level of utilization and product complexity but which differ considerably by investment required, shop size, uptime, inventory levels and quality accomplished. The purpose of this thesis is to explain why those differences exist. The methods used to understand differences were direct observation, first hand working experience on the line and participation in workshops, analysis of internal and external bibliography, and interviews to line workers, supervisors and managers within different functions. Differences are observed and described in the design and operation of the shops. A "Lean" body shop, named in such a way given their reduced use of resources to accomplish better results, follow an integrated design process where product and process are tightly integrated, maintain similar product architectures across generations enhancing standardization and modularity, similar shop architectures across plants, close relationships with suppliers, elimination of complexity in manufacturing processes, flexible conveyance processes and the use of proven technologies. In addition, a lean body shop's operation works as a coherent and integrated set of practices under three systems: The Social System: Engagement and development of workforce that acts as enabler; The Technical System: Tools to reduce waste and increase quality; The Problem Solving & Continues Improvement System: An ever learning and improving organization where problems are visualized, solved and countermeasures implemented and shared. Finally, this thesis provides insights into the change management processes associated with the transformation into lean body shops, from establishing a sense of urgency and guiding coalition to empowering broad based action employee action and anchoring new approaches in the culture, and performs a case analysis on a successful lean transformation: NUMMI.
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