Managers' Forum ~ Business Case Reviews
Decoding the DNA of the Toyota Production System
Review by: Nadège Gella Jean-Pierre
Toyota has long been known for their outstanding production system,
which is
based on 50 years of experience. The Toyota Production System
was thought to
be a result of solely the Japanese culture; however, their success
in the production
area has been difficult to imitate by other companies including their
Japanese
competitors.
The Toyota Production System is made up of two very different elements.
On
one hand the Toyota Production System can be described as a rigidly
scripted
activity where all the parts are connected and production must flow.
Yet, Toyota's
operations are concurrently flexible and responsive to customer demand.
Other
companies have seen these two elements working together, as the Toyota
paradox.
The elements, however, come together in Toyota's successful use
of scientific
method. The companies operations can be seen as a continuous
series of controlled
experiments based on trial and error. In addition, Toyota has
exported their
method of production, and helped other companies implement it.
The Toyota Production System grew out of Toyota's 50 years of experience
combined
with their method of experimentation that is ingrained in each and
every worker.
Toyota has a four-part system to approach the production line.
The first rule
governs the way workers do their work. The second responds to
the way they
interact with one another. The third rule governs how production
lines are
set up, and the fourth rule shows how people learn to improve their
own job
or task.
This case analysis came out of a four study of the Toyota Production
System
in more than 40 plants. Toyota has successfully introduced their
unique method
all around the world, including the US. The key to their production
system
is the fact that the system is rigidly scripted and at the same time
enormously
flexible and adaptable. For outsiders, it is important to understand
that Toyota
creates a community of scientists. When for example Toyota defines
a specification,
it is establishing different sets of hypotheses that can be tested
using the
scientific method, which requires rigorous problem solving.
This case study analyzes
how the Toyota Production System teaches the employees
the scientific method and challenges employees to improve their jobs
within
the production line. Toyota can be described as a learning organization.
All
employees follow a well-defined sequence of steps for a particular
job, which
makes it easy to identify a problem or deviation from specifications.
Once
apparent, the worker and supervisor can move immediately to correct
the problem
or determine how to change the specifications to prevent recurrence.
This process
forces the worker to test hypotheses through action.
I found this case to be quite interesting. This case study was
very helpful
in understanding the Toyota Production System, and how this system
uses the
scientific method in production. The Toyota Production System
could help many
industries in general be more efficient. The Toyota Production
System focuses
on the process, not just the production. It requires active participation
of
all workers at all levels, which in turn improves productivity.
Spear, Steven; "Decoding the DNA of the Toyota Production System"; Harvard
Business
Review; Sep/Oct 1999; p. 96. ISSN: 0017-8012.
