Word: carlies
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...much. At least not from an engineering, mechanical or even a quality point of view. You don't reach the top gear in the global auto industry unless you make outstanding cars, which Toyota does - most of the time. Though cars are familiar machines, they are also highly complex ones. To create a modern car, a company has to design, engineer, build, buy and then assemble some 10,000 parts. Sell 7.8 million cars, as Toyota did worldwide in 2009 - a horrible year for the industry - and there are billions of new parts with the potential to go kerflooey. Inevitably...
...There was more to come. In early February, Toyota managed to back over any remaining political goodwill it had when it voluntarily recalled more than 400,000 Prius and other hybrid cars - this time, to update software in the antilock brake system that could cause a glitch if the car traveled over a bumpy surface. The Lexus is Toyota's top-selling luxury model - bad enough - but the Prius is its darling, a car that demonstrated the company's ability to solve technical issues that kept other automakers from fielding gas-electric hybrids, at the same time clinching Toyota...
...Little Company That Could So what happened? What went awry at the car company whose widely admired Toyota Production System (TPS) had made it the paragon of the art of manufacturing...
...1930s, its climb to global prominence started after World War II as the company became one of the exemplars of Japan's miracle - the creation of a successful, technologically advanced economy out of the ashes of war. In the 1950s, the company experimented with ways to manufacture cars more efficiently. Ironically, Japan's awful postwar poverty acted as a spur. The production techniques of American car companies - with heaps of stored components awaiting assembly, and ample machinery to do it - was just too wasteful and expensive for Japan. Toyota had to learn to do more with less. The result...
...concept called kaizen - Japanese for "continuous improvement." In practice, it's the idea of empowering those people closest to a work process so they can participate in designing and improving it, rather than, say, spending every shift merely whacking four bolts to secure the front seat as each car moves down the line. Continuous improvement constantly squeezes excess labor and material out of the manufacturing process: people and parts meet at the optimal moment. Kaizen is also about spreading what you've learned throughout the system. And then repeating it. It's the reason, for instance, that when Toyota assumed...