Category Archives: Toyota Production System (TPS)

Top 21 Executives at Toyota Getting a Raise to a Combined US$14.9 Million

Posted on May 20, 2015 by John Hunter

The difference between Toyota and so many other companies is obvious in many ways. One of the stark differences is how executives are paid. Toyota’s belief in a strong management system contrasts with the self worship many USA executives practice. How the executives pay themselves illustrates this very well. Even with a proposed 19% pay boost the top 21 executives at Toyota would get a combined US$14.9 million in the proposal for this year. Toyota Plans 19% Boost in Director … Continue reading →

Posted in Management, Psychology, Respect, Toyota Production System (TPS) | Tagged , , | 2 Comments

Toyota Posts Record Profit: Splits $15 million in Pay and Bonus for top 21 Executives

Posted on June 2, 2014 by John Hunter

After posting record profits of $17.9 billion Toyota proposes to increase the pay and bonus for the top 21 executives to $14.9 million. That is not as you might expect just the increase in the bonus to the CEO. That is the entire pay and bonus for the top 21 executives. That places all 21 together below the top 50 CEO paydays in the USA. Toyota’s net income for the year surged 89.5%. While the profits are partially due to … Continue reading →

Posted in Competition, Deming, Investing, Management, Popular, Respect, Toyota Production System (TPS) | Tagged , , , , , , , | 3 Comments

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

Posted on April 8, 2014 by John Hunter

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. Humans Steal Jobs From Robots at Toyota Humans are taking the place of machines in plants across Japan so workers can develop new skills and … Continue reading →

Posted in Lean thinking, Management, Toyota Production System (TPS) | Tagged , , , , , , , , , , ,

Respect for Everyone

Posted on November 7, 2012 by John Hunter

TL;DR – The two pillars of the Toyota Way are: respect for people and continuous improvement. One of the big reasons my career followed the path it did (into management improvement) was due to the impact of respect for people. My father was a professor (in statistics, engineering and business) and consulted with organizations to help them achieve better results. To achieve results he took advantage of the gains possible when using statistical tools to manage with respect for people. … Continue reading →

Posted in Deming, Lean thinking, Management, quote, Respect, Toyota Production System (TPS) | Tagged , , , , , , , | 7 Comments

Long Term Thinking with Respect for People

Posted on May 9, 2012 by John Hunter

Toyota nearly went bankrupt near 1950 and had to lay off a third of their employees. A huge focus of the Toyota Production System as envisioned by Taiichi Ohno was to secure the long term success of the company. The priority of doing so is easier to see when you respect people and are in danger of witnessing the destruction of their careers. I can’t find the quote (maybe Jon Miller, or someone else, can provide one), but I recall … Continue reading →

Posted in Deming, Lean thinking, Management, Respect, Toyota Production System (TPS) | Tagged , , , , , , , , , , , | 6 Comments

Lean Manufacturing and the Toyota Production System

Posted on May 3, 2012 by John Hunter

In this post I explore my thoughts about what lean (lean manufacturing, lean thinking…) means. The way I think about it is that lean manufacturing sprung from Toyota. It seems to me the lean manufacturing name was meant to capture the entire Toyota Way. Capturing the whole of what that encompasses isn’t possible in 1 or 2 or even 10 books so it wasn’t done completely. To me the difference between lean manufacturing described early on by Womack and Jones … Continue reading →

Posted in Deming, Lean thinking, Management, Toyota Production System (TPS) | Tagged , , , , , , | 6 Comments

The Need to Improve Management While Building Organizations Fit For Human Beings

Posted on September 29, 2011 by John Hunter

[embedded video link broken, so that code was removed but you can watch the video by following this link: Gary Hamel: Reinventing the Technology of Human Accomplishment. I agree with Gary Hamel that we need to adopt new management strategies. I happen to believe most of new strategies we need to adopt have been known for decades, we just fail to implement many of them. He argues it is hard to retain knowledge advantages (within companies). I agree. However execution … Continue reading →

Posted in Competition, Deming, Innovation, Management, Respect, Toyota Production System (TPS) | Tagged , , , , , , , | 2 Comments

Respect for People Doesn’t Mean Avoiding Any Hint of Criticism

Posted on January 14, 2011 by John Hunter

As I said in a post a few years ago on respect for people and Taiichi Ohno‘s sometimes very aggressive style: The difference between respect and disrespect is not avoiding avoiding criticism. In fact often if you respect someone you can be much more direct and critical than you can with someone you treat as though they don’t have the ability to listen to hard truths and improve. I think we often have so little respect for people we just … Continue reading →

Posted in Deming, Lean thinking, Management, Popular, Psychology, quote, Respect, Toyota Production System (TPS) | Tagged , , , , , , , , , , | 4 Comments

Annual Management Blog Review: Software, Manufacturing and Leadership

Posted on January 9, 2011 by John Hunter

In my contribution to the 3rd annual management blog roundup I will take a look at 3 blogs: Dennis Stevens, How to implement “Lean Thinking” in a Business and the Three Star Leadership Blog. This year 14 management bloggers contributed to highlight over 40 blogs, be sure to check out all the posts. Dennis Stevens writes a blog of the same name focused on agile software development principles with a strong focus on Dr. Deming’s ideas and lean thinking. What’s … Continue reading →

Posted in Carnival, Lean thinking, Management, Quality tools, Software Development, Toyota Production System (TPS) | Tagged , , , , , , , , , | 3 Comments

Building Adoption of Management Improvement Ideas in Your Organization

Posted on December 8, 2010 by John Hunter

Continuation of How to Get a New Management Strategy, Tool or Concept Adopted Target something that actually provides a good story. It often helps if there have been failures in attempts to solve a problem in the past. That makes the new success more impressive. Something that is relate-able to the audience you are trying to win over is also useful. Even if senior management cares about an issue, if the solution is so technical they are completely baffled, they … Continue reading →

Posted in Deming, Management, Popular, Quality tools, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , , , , | 16 Comments

The Toyota Way – Two Pillars

Posted on April 15, 2010 by John Hunter

Toyota is receiving plenty of criticism now, much of it for good reason. There is also a large amount of psychology involved. From what I have seen, the insurance companies still see better claims history (fewer and lower cost claims) against Toyota than other manufacturers. And there is another strain that seems to enjoy criticizing what has been praised. Toyota does need to improve. But that is improvement of the existing management system, not a need to radically change the … Continue reading →

Posted in Deming, Lean thinking, Management, Manufacturing, Popular, Process improvement, quote, Respect, Toyota Production System (TPS) | Tagged , , , , , , , , , , , | 18 Comments

Toyota’s Journey to Lean Software Development

Posted on March 18, 2010 by John Hunter

Toyota’s journey from Waterfall to Lean software development by Henrik Kniberg Toyota builds cars (duh). In the past that didn’t involve much software, and the little software that was needed was mostly developed by suppliers and embedded in isolated components. Toyota assembled them and didn’t much care about the software inside. But “The importance of automatic electronic control system has been increasing dramatically year by year” said Ishii-san. A modern car is pretty much a computer on wheels! In a … Continue reading →

Posted in Innovation, IT, Lean thinking, Management, Quality tools, Software Development, Toyota Production System (TPS) | Tagged , , , , , ,

Toyota Stops Lines – Lots of Lines

Posted on January 26, 2010 by John Hunter

The practice of stopping (either the machine automatically detecting a problem and stopping or a person stopping) the line when a problem is detected is part of Jidoka. Jidoka is also highlighting and making problems visible. Jidoka and Just in Time are the two pillars of the Toyota Production System. Today Toyota practiced Jidoka on a large scale: Toyota Halts Sales of Eight Models After Recall [the broken link was removed] Toyota Motor, still struggling to resolve a problem with … Continue reading →

Posted in Lean thinking, Management, Manufacturing, Toyota Production System (TPS) | Tagged , , , , | 3 Comments

Management Webcast: Introduction to Lean Manufacturing

Posted on November 9, 2009 by John Hunter

Webcast introduction to lean manufacturing by Ron Pereira. This is a great 9 minute introduction to the topic, for those not familiar with lean thinking. It sets the context for lean thinking and provides some history on how lean manufacturing has developed. Get videos on learning about lean from the Gemba Academy. Related: Oranges, Pebbles, and Sand [the broken link has been removed] – Dr. Russell Ackoff Webcast on Systems Thinking – An Introduction to Deming’s Management Ideas by Peter … Continue reading →

Posted in Deming, Lean thinking, Management, Toyota Production System (TPS), webcast | Tagged , , , ,

Don’t Hide Problems in Computers

Posted on August 11, 2009 by John Hunter

Making things visible is a key to effective management. And data in computers can be easy to ignore. Don’t forget to make data visible. Paul Levy, CEO of Beth Israel Deaconess Medical Center in Boston recently hosted Hideshi Yokoi, president of the Toyota Production System Support Center and wrote this blog post: Together, we visited gemba and observed several hospital processes in action, looking for ways to reduce waste and reorganize work. It was fascinating to have such experts here … Continue reading →

Posted in Data, IT, Lean thinking, Management, Quality tools, Toyota Production System (TPS) | Tagged , , , , , , , | 3 Comments

Lean Manufacturing Webcast from India

Posted on July 28, 2009 by John Hunter

This lean thinking webcast from India actually does a pretty decent job of providing an overview (for a business TV channel) even if they get some things a bit confused. The discuss TQM in India preceding lean which is an accurate view in my opinion – quality management shared many lean principles. They even talk of lean at Ford doing lean first. But they get the decades for that a bit off. They seem to mash together the “quality is … Continue reading →

Posted in Deming, India, Lean thinking, Management, Toyota Production System (TPS), webcast | Tagged , , , , | 1 Comment