Toyota is one of the world leaders in the automotive market and the company is very successful both in terms of profitability and market capitalization. Despite the fact that Tesla has recently appeared, nevertheless, for many years Toyota remains the standard of quality and Toyota’s business is built on very clear and principles known to scientists for a long time.
The authors of the book very clearly show that in fact there is no the mysteries of the Toyota company itself are simply very deep and subtle effective management that can be extrapolated and other businesses. in particular such major American companies like Boeing, General Electric, Caterpillar have been using Toyota production principles.
It is possible to apply the principles even for small industries, it is only important to understand and want to apply it in practice. The book just describes development and prosperity of the Toyota company which is based on 14 basic principles and the author of the book reveals to us the very effective formula for success, the very philosophy that must be applied in the long run in every business for increasing its efficiency.
What is the basis?
There is such a Japanese word – Kaizen. Which denotes the pursuit of excellence, continuous learning of new things and readiness to change. Kaizen’s combined with Toyota’s respect for its personnel and gives the very same success, this is the main strategy of Toyota in the organization production is based on the so-called integral production system TPS (Toyota Production System), the principles of which form the basis of lean production (Lean management, Lean production, Lean manufacturing), this can include, for example, stopping a conveyor to avoid overproduction, creating a stock of products, supporting company employees, using manual assembly, and respecting workers.
Another important rule is the maximum disclosure of creativity.
Toyota employees and that is why the staff is constantly trained and improve because Toyota comes from the fact that success is laid in fact, people, not technologies, and thus the company, as it were, consolidates it’s dependence on labor. It would seem that this is not a trend now, it would seem everything they think that a successful business is maximum robotization, but it’s not there it was said in Toyota.
And here is an example that the 14 principles described in the book can be extrapolated to other businesses.
In the 80s, Toyota organized a joint project with General Motors outside of japan and started training employees internal principles of the system and after a few years General Motors began to produce cars at such a rate that it overtook all other General Motors factories in productivity.