Author urges companies to learn Toyota Way
Japanese automaker invests in workers, Economic Club luncheon told
Friday, May 19, 2006
BY LISA CAROLIN
News Staff Reporter
The key to success for the Toyota Motor Co. is that it makes long-term investments in developing its people.
That's according to Jeffrey Liker, professor of industrial and operations engineering at the University of Michigan. Liker was the speaker at Cleary University's Livingston Economic Club luncheon on May 15 and his focus was his best-selling book, "The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.'' The book was published in 2004 and addresses the philosophy and principles that drive Toyota's quality.
Liker has studied Toyota since 1982 and said the company stands out in every way - better technology, lean manufacturing and hard work.
"Invest and develop your people and you win,'' Liker said. "The first things many American companies cut are human resources, training and development, and (they) encourage employees to take early retirement. It's not that way at Toyota.''
Sakiichi Toyoda started Toyota on a rice farm, where he decided to make a better wood loom by adding steam engine power. He developed the ability to stop the system when a thread would break without having to use people to constantly keep an eye on the thread.
"Technology is to serve the people, not for people to be subservient to technology,'' Liker said regarding Toyoda's philosophy, which forced workers to take immediate action whenever there was a problem.
Toyoda's son, Kiichiro Toyoda, started the Toyota Automotive Co. and introduced the concept of "just in time,'' which meant that from the time the customer gives the order until the cash is collected, the company would work to shrink the production time and eliminate waste to become more competitive.
Liker said Toyota uses what he refers to as the four Ps: problem solving (continuous improvement); people and partners (respect, challenge and grow); process (eliminating waste); and philosophy (long-term thinking). He said Toyota has always encouraged employees to solve quality problems rather than hide them, by every employee taking a do-it-yourself attitude.
"Toyota has one of the most productive systems in the world because of a strong support system,'' Liker said. "Every manager is expected to deeply understand the process they are managing. Most of the improvements at Toyota are happening at the operation level.''
Toyota approaches problems as opportunities to improve, Like said, and what separates Toyota from most companies in America is its belief in a long investment in its employees.
