Toyota - a pioneer in management

In a previous post, I introduced a management philosophy native to the country of blooming cherry - Kaizen.
Today I would like, with reference to more modern times, to describe the management approach of Toyota Motors.

Japan, as we see it, is the undoubted world leader in streamlining work processes. Toyota's approach to car production turned out to be a real revolution for the automotive industry.

The system was created by production manager Taichi Ohno. The process is a key element of the Japanese management system. The basic rule of the Toyota Production System is a constant commitment and a desire to continually improve the quality of the manufactured product as well as the company.

Goal of the Toyota Production System

The goal of the system is to increase production efficiency by eliminating waste.

After World War II, Japan's fledgling automobile industry suffered from low productivity.
Several factors contributed to this: primarily a shortage of raw materials, but also a lack of space to build large enough factories, or to hire a worker. Ohno's goal at Toyota was to raise productivity levels to those achieved in Ford's factories. As a result of his analysis, he found that workers in both factories were working the same number of hours, which in turn gave him the premise that the main source of lower production was their lower labor productivity and pervasive waste.

Since the 1980s, Toyota's production system has been the most efficient production system created to date. By waste, Ohno meant several aspects:

• overproduction,
• waiting time,
• transportation problems,
• inefficient processing,
• inventory levels,
• defects in manufactured products.

It has become the philosophy of the system to eliminate or reduce the impact of the mentioned factors. Reorganization of the company's structure in terms of the so-called lean structure has resulted in huge increases in productivity. Although many major companies have tried to implement the system at home in one form or another, few have succeeded in achieving Toyota's results.

toyota's 4P

Toyota's 4P model consists of the following elements:

• Philosophy - the enterprise is a tool, used to create added value for customers, society, the community and partners.
• Process - achieving desired results, such as long-term cost reduction and quality improvement, by having leaders follow the right processes.
• Employees and partners - challenging the company's employees and partners leads to increased value for the organization. This gives them a chance to develop their skills and increase their confidence.
• Problem solving - continually solving fundamental problems is the driving force behind the organization's learning process.

Every Toyota employee strongly identifies with the company. Harmony at work is also important in building Toyota's success. In the corporation, the differences between the different levels of positions, so to speak, are blurred and not visible. Employees at the lowest level work together for the common good of the company. Employees' identification with their team as well as the corporation itself, and their hard work to achieve the main goals is generously rewarded by Toyota.