Blog posts on Toyota Production System

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• Reacting to Product Problems

  Toyota is doing well but as they say themselves, over and over: Toyota still has plenty of room to improve. The key is to not only say so, but act on it (which I believe they are doing, the recalls give one indication of the continued need to improve).

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• Business 901 Podcast with Me: Deming’s Management Ideas Today

  Here are some links related to items I mention in the podcast:

  • The W. Edwards Deming Institute Blog
  • William Hunter, my father. Link to paper with Easaw Chacko on Building a Quality Movement within a developing nation, 1972. Developing Children’s Numeracy Using Dice
  • Shoichiro Toyoda, Honorary Chairman and director of Toyota: “There is not a day I don’t think about what Dr. Deming meant to us. Deming is the core of our management.”
  • Statistics for Experimenters by George Box, Bill Hunter and Stu Hunter.
  • City of Madison applying Deming’s management ideas...

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• Workplace Management by Taiichi Ohno

  Ohno focused a great deal on the faulty perceptions derived from cost accounting thinking. He discussed the importance of not letting your understanding be clouded by thinking with the accounting mindset.

  If you insist on blindly calculating individual costs and waste time insisting that this is profitable of that is not profitable, you will just increase the cost of your low volume products. For this reason there are many cases in this world where companies will discontinue car models that are actually profitable, but are money losers according to their calculations. Likewise, there are cases where companies sell a lot of model that they think is profitable but in fact are only increasing their loses.

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• Deming Companies

  I see Toyota as the best example of a Deming company. Dr. Deming did not propose a cookbook to follow. Instead he proposed a theory that requires learning and application within the specific institution. Toyota has created a management system that is based on Dr. Deming’s ideas and then they have evolved that over 60 years into something that is consistent with Deming’s management philosophy and has new ideas Deming did not mention. As odd as it may sound that very act of developing new concepts that were not mentioned by Dr. Deming is exactly what makes them the company that most exemplifies Deming’s management system.

  Other companies that have also done a great job applying his ideas. Peaker Services has done great things...

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• Toyota’s Commitment

  The Toyota Way is a management philosophy involving 14 principles that is the essence of the DNA of our organization and really all those who make up the company. In its basic form, the Toyota Way boils down to two fundamental practices: Respect for People and Continuous Improvement.

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• Ex-Toyota Manager Consulting with Porsche in 1994

  While respect for people is an important part of the Toyota Production System, the practice of former Toyota managers were often the "tough love" variety. Today, many people are often too timid, in my opinion, to call out things that need to be improved for fear of making someone uncomfortable. Where that balance properly lies though is based on the culture of the organization (and what needs to be done - occasionally there is a need to "shake people up" in order to make change take place more effectively).

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• How Toyota Turns Workers Into Problem Solvers

  ...The main difficulty is not a knowledge gap, but a performance gap. Most of what Toyota does has been published in numerous booksThe Toyota Way, The Machine That Changed the World and articles (see Curious Cat links to books and articles on Toyota’s management ideas). Reading that information is wise, but that is the easy part. The difficult part is actually managing more effectively...

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• Toyota Special Report: Thinking Production System

  This short article is peppered with many great quotes as section headers:

  • In TPS, the T also stands for Thinking
  • To cut lead-time, cut out all the bits that don't add value.
  • The line must stop if there is a problem.
  • Ask yourself Why? five times.
  • Develop people who can come up with unique ideas.

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• Toyota Execution Not Close to Being Copied

  A company truly driven by a focus on continual improvement, respect for all employees and reasonable executive compensation might be a company serious about adopting Deming and Toyota management principles. It is hard for me to imagine such a situation that doesn’t truly seek, as the primary aim of the organization, to benefit many stakeholders (workers, owners, suppliers, customers…) not just executives (or just executives, board and owners…).

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• Toyota Understands Robots are Best Used to Enhance the Value Employees Provide

  Toyota has always seen robotics as a way to enhance what staff can do. Many USA executives think of robotics as a way to reduce personnel. Toyota wants to use the brainpower of employees to continually improve the organization. Toyota wants to free people for monotonous or dangerous work to let them use their minds.

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