Word: toyotas
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...reputation for quality that Toyota has damaged in just a few months took decades to build. Though Toyota was founded in the 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...
...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 full control of the New United Motor Manufacturing plant in Fremont, Calif., which it had co-owned with GM, it got way more productivity and quality out of it than GM could with essentially the same workforce and equipment. (See the most exciting cars...
...Sakichi Toyoda developed another concept, jidoka, or "automation with a human touch." Think of it as built-in stress detection. At Toyota, that means work stops whenever and wherever a problem occurs. (Any employee can pull a cord to shut down the line if there is a problem.) That way, says Steven Spear of MIT, author of Chasing the Rabbit: How Market Leaders Outdistance the Competition and an expert in the dynamics of high-performance companies, "When I see something that's not perfect, I call it out, figure out what it is that I don't know and convert...
...That was the idea. But the fact that Toyota has produced so many imperfect cars is evidence that its system developed faults. Management experts like John Paul MacDuffie, a co-director of the International Motor Vehicle Program (IMVP) at the University of Pennsylvania's Wharton School, place the blame on the company's headlong growth in the past 10 years. In 2000, Toyota produced 5.2 million cars; last year it had the capacity to make 10 million. Since 2000, when Toyota had 58 production sites, it has added 17. In that time, in other words, Toyota has added the capacity...
...rapid expansion puts enormous pressure on any company's ability to transmit know-how and technology, especially over long distances and across national cultures. When Toyota opened its Georgetown, Ky., plant in 1988, hundreds of work-team specialists and other experts were transplanted from Japan for several years to make sure the new plant fully absorbed the Toyota way. That kind of hand-holding may still be possible, but it isn't as easy. How can that be fixed? Says Spear: "The big deal is this question, Does an organization know how to hear and respond to weak signals, which...