Will we get to see another TOYOTA?
The TPS or the TOYOTA PRODUCTION SYSTEM as we
know is the key to Toyota’s success.
Fully
gaining the benefits of the Toyota Production System requires a full transfer
of Toyota’s practices and methods, including several factors unique to Toyota
which are often forgotten.
While many companies attempt to implement the Toyota Production System (TPS), they often fail because they do not realize that you need to put the entire system in place, and not just bits and pieces of it, to gain the same type of culture and process improvement that Toyota can boast of.
One of the greatest strengths of TPS is the use
of the bottoms-up approach, where employees are free to identify and implement processes to improve
processes, resulting in more streamlined steps and greater quality.
Where there is plenty of literature on how other companies often struggle to
put this into practice, due to a lack of trust and true two-way communication, two often
ignored reasons for why this approach works in Toyota are that:
- The presence of guaranteed
employment in Toyota
- The ability to make mistakes
Even in the toughest economic conditions, Toyota rarely ever
lets go of their employees. In fact, unless you've done something very bad, it
is almost impossible to be made redundant by the company. They would rather take a pay cut
across-the-board rather than firing anyone, even in an economic crisis*
Toyota believes that any crisis is cyclical, and eventually demand will
return. The time and money needed to retrain new workers in the skills
and culture of Toyota, and getting their buy in takes years, so it simply isn't
a matter of rehiring people in. In other words, Toyota approaches their workforce with respect,
assuming they have skills which is valuable to the company.
The second point links directly into the first. Unlike other firms, Toyota's
approach to Kaizen involves and encourages making mistakes, so that people
learn what works and what doesn't. Because of
"life-time" employment, people do not fear reprisal because an idea
they developed and implemented did not have the effect they had originally
intended. As a result, people
dare to propose and implement new ideas.
Lastly, front-line workers have an intrinsic
knowledge of the processes they work in, and thus are able to make competent
improvements. On another level, their managers also have knowledge of the process, but
not through numbers, but by also going down to the floor to observe work, and
problems for themselves. This is basically what the concept of
genba-genchi-gembutsu is all about, and this also contributes to how Toyota
avoids bad decisions from top management, because management themselves
understand the issue first-hand.
* This idea
was successfully implemented in heavy engineering conglomerate of M/s Barry
Wehmiller during the downturn of 2008-2009 where the company witnessed huge
reduction of business , but contrary to what one could easily imagine, they decided
under the humane leadership of their chief, Mr Bob-Chapman, that none would lose their job.
This decision of the management in the times of crisis where the company and
its top management decided to stand by their employees, earned their trust , dedication, ownership of
every employee which made their rise to the top amongst the US companies which includes manufacturing and
engineering services.
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