Author Liker Examines 'The Toyota Way'
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At an industry meeting last week, Toyota Motor Corp. chairman Hiroshi Okuda said the company was able to become the world's most profitable car manufacturer because of its ability to make cars at a low cost.
But with Toyota widely recognized as the most profitable car manufacturer in the world, it's only natural for other companies - even those outside the auto industry - to try and emulate their business model.
Author Jeffrey Liker delivers an inside account of Toyota and its global operations in his book, "The Toyota Way."
According to Liker, the "lean manufacturing" method invented and perfected by Toyota - which aims at the elimination of waste in every area of production - certainly has its role in the company's multi-billon dollar revenues each year.
"But tools and techniques are no secret weapon for transforming a business," Liker writes in the book's opening chapter. "Toyota's continued success at implementing these tools stems from a deeper business philosophy based on its understanding of people and human motivation. Its success is ultimately based on its ability to cultivate leadership, teams, and culture, to devise strategy, to build supplier relationships, and to maintain a learning organization."
After 20 years of studying Toyota Corp., Liker outlines the 14 principles that constitute the "Toyota Way." These principles are the foundation of the Toyota Production System practiced at Toyota manufacturing plants around the world, and vary from decision-making components to respecting, developing and challenging employees.
Not satisfied with current success, Toyota continues its expansion into hybrid vehicles with gas-electric engines.
"Our hybrid vehicles have been a huge success in the marketplace," said Dan Sieger, spokesperson for Toyota Motor Manufacturing of North America. "It's one of the reasons why we're going to be starting to build the hybrid Camry in Georgetown next year - to help us be more responsive to consumer demands."
