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April 24, 2008
Toyota Canada CIO on Genchi Genbutsu and Kaizen

What’s driving Toyota Canada’s success? - CIO reveals all

for Hao Tien, chief information officer (CIO) at Toyota Canada Inc. those two Japanese phrases – Genchi Genbutsu (go and see) and Kaizen (continuous improvement) really capture it all.

the innovation wasn’t in the technology, but in the way the various partners were brought together to agree upon processes, which were then consistently executed. CustomerOne is only project of its kind in the Toyota empire.

A computer system links activities across multiple customer touch points, and analyzes data from the more than 13,000 daily service visits to Toyota dealers across the country. The system flags major repeat problems and Toyota Motor Corp. head office in Japan is informed so engineers can be assigned to make repairs to designs or manufacturing, if necessary.

“For instance if a call comes into us at Toyota Canada, the dealer knows about it. So if they go back to the dealer for services, everyone offers the same resolution of the problem.” In the four years since its launch CustomerOne was has been a runaway success. Tien cites some of the more tangible benefits this initiative has brought about. They include:

* Cutting down the customer problem resolution from weeks to an average of three days through this initiative alone;
* Early detection of customer dissatisfaction in services
* Reducing detection of product defects (from months to days).

The Toyota Canada CIO talks about the tremendous business benefits from this seamless freeflow of information. “When a defect is detected at the dealership, the next day it would up to our engineering department.” The speed at which information traverses is of immense value – especially when new vehicles are launched. Tien cited an example.

“We recently launched a new Toyota Corolla [model]. If there were a problem with a door knob of the vehicle, the plant would know about it and a fix would be put in place.”

An article well worth reading. Related: Toyota IT Overview - Lessons from Toyota’s IT Strategy - Good Customer Service Example at Toyota - Software Supporting Processes Not the Other Way Around

One Response to “Toyota Canada CIO on Genchi Genbutsu and Kaizen”

  1. Zen & Art of The Toyota Way | learnsigma Says:

    [...] to the workplace and see for yourself to thoroughly understand the situation (genchi genbutsu), while reflecting on what you have leanred (hansei) and practicing continuous improvement [...]

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