Tag Archives: Toyota

The New Age of Robots and What it Means for Jobs

I believe we have reached a turning point in the usefulness and effectiveness of industrial robots. For several decades it was pretty easy to predict wholesale adoption of “the robots will save us” mantra would be followed by failure. I still strongly believe Toyota’s method (thoughtful use of robotics to enhance people is the best strategy). But the ease of using robots to succeed in the long term is much easier today than 10 years ago. Robot-first strategies are going … Continue reading →

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Robots for Health Care from Toyota

Japan has an extremely rapidly aging population. This increases the need for health care and for assistance with everyday tasks from the elderly. Japan is also among the leading countries for developing robots for health care and living assistance. I have written about the efforts to have robots fill some needs in Japan previously, on this management blog and also my partner Curious Cat Engineering blog: Toyota Develops Thought-controlled Wheelchair (2012), Toyota’s Partner Robot (2007), Toyota Human Support Robot (2012) … Continue reading →

Posted in Innovation, IT | Tagged , , , , , ,

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

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

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

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 , , , , , , , , , , ,

The Market Discounts Proven Company Leadership Far Too Quickly

Developing a strong executive leadership culture is not a short term effort. It isn’t based on one person. It almost never deteriorates quickly. Yet markets continually overact to minor blips on the long term success of companies. I think this is mainly due to a failure to appreciate systems and a failure to appreciate variation along with plenty of other contributing factors. The market’s weakness does provide investment opportunities. Though taking advantages of them is much more difficult than spotting … Continue reading →

Posted in Data, Economics, Investing | Tagged , , , , , | 1 Comment

Long Term Thinking with Respect for People

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

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

Looking at Auto Manaufacturing in the USA

America’s Dirty War Against Manufacturing Bob Lutz, the former head of GM, says it was neither uncompetitive wages nor unions that drove the Big Three into decline. It was a management with its eye focused on the bottom line and the short term. That sentiment should be familiar to students of Deming (it is one of Deming’s 7 deadly diseases). It is sad that this bad management practices, short-term thinking, continues to do harm several decades later. Hopefully we can … Continue reading →

Posted in Deming, Economics, Manufacturing | Tagged , , , , , , , | 1 Comment

The Toyota Way – Two Pillars

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

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

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

Akio Toyoda’s Message Shows Real Leadership

Speech by Akio Toyoda Since the birth of Toyota, the company’s philosophy has always been to “contribute to society.” … “Contributing to society” at Toyota means two things. First, it means, “to manufacture automobiles that meet the needs of society and enrich people’s lives.” And second, “to take root in the communities we serve by creating jobs, earning profits and paying taxes, thereby enriching the local economies where we operate.” … Toyota has overcome many challenges during its seven decades … Continue reading →

Posted in Customer focus, Deming, Lean thinking, Management, Manufacturing, quote, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , , , | 14 Comments

Toyota Develops Thought-controlled Wheelchair

Toyota has developed a thought-controlled wheelchair (along with Japanese government research institute, RIKEN, and Genesis Research Institute). Honda has also developed a system that allows a person to control a robot through thoughts. Both companies continue to invest in innovation and science and engineering. The story of a bad economy and bad sales for a year or two is what you read in most newspapers. In my opinion the more important story is why Toyota and Honda will be dominant … Continue reading →

Posted in Creativity, Deming, Innovation, Lean thinking, Management, Science, Toyota Production System (TPS) | Tagged , , , , , | 2 Comments

Toyota Posts Loss of $6.9 Billion in Last Quarter

Toyota Posts Loss of $6.9 Billion in Last Quarter For January-March, Toyota booked a $6.9 billion loss, in line with consensus estimates, and cut its annual dividend nearly 30 percent — the first cut since at least 1994, when it changed its reporting period. … Toyota President Katsuaki Watanabe was more downbeat, stopping short of predicting when sales would pick up in major markets, or when the company would return to profitability as it remains saddled with excess capacity. “Of … Continue reading →

Posted in Economics, Investing, Management, Toyota Production System (TPS) | Tagged , , , | 1 Comment

NUMMI, and GM’s Failure to Manage Effectively

Gipsie Ranney recently sent me an article on her thoughts on NUMMI and the current problems with the Big Three car makers to post to the Curious Cat Management Improvement Library. NUMMI is the plant that Toyota and General Motors run together as a joint venture. The article is excellent. The answer to a question asked by someone else on the tour was stunning to me. The person asked what kind of computerized inventory system they had at NUMMI. The … Continue reading →

Posted in Deming, Lean thinking, Management, Management Articles, Manufacturing, quote, Respect, Systems thinking, Toyota Production System (TPS) | Tagged , , , , , , , , | 2 Comments