20 Years After “The Machine That Changed the World,” Why No 2nd Toyota
Posted by steven_spear | Under Auto Industry, Business Strategy, Innovation, high velocity organizations, leadership and innovation, organizational learning, process excellence Monday Sep 28, 2009Twenty years after the term “lean production” was introduced there have been countless books, immeasurable benchmarking studies, and innumerable lean implementations. The problem? No second Toyota.
For comparison? Toyota first one attention for affordable, reliable, fuel efficient small cars. It added mid sized and large autos, cars, trucks, and SUVs, the luxury brand–Lexus, and the entry brand–Scion, globalized its design and production capacity, and ran well ahead with the hybrid drive.
Certainly, in the auto industry, no one has leaned to dominate its rivals through speed, agility, quality, and cost. Any examples in another industry?
If so, who?
If not, why not?
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Toyota was not that famous for the lean production all the way since 1973-1975 although they started their journey immediately after the WWII. That means almost 30 years of being almost an anonymous player in the car industry… Then they exploded into being the best one when the oil crisis struck everybody else (but not them…).
That’s why I think we should attend some more years to see the effects of the “The Machine” book, because lean transformation is never easy and straightforward: it needs to develop its principles within the walls of the companies, to enter into everyones minds and it needs a continuous effort and stability of the administration.
Toyota got this one for 70 years now, the others, who have read “The Machine” have started only 20 years ago.
I know of some companies doing well, but only the time (and continuity of efforts) will tell whether they will reach the Toyota greatness.
What role has Japanese culture since World War II played in Toyota’s success, particularly when contrasted with American culture over that same time period?
Wouldn’t we all like to be part of the next Toyota? As discussed in you book Chasing the Rabbit”, there are some examples of success, but you would think that now the secrets are out, everyone would just do it.
The last chapter of “Chasing the Rabbit” mentions that you can’t learn golf by reading a book; you need to practice. I do not think reading and practice are enough. To achieve the highest level of skill, constant feedback from an outsider (like a coach or very knowledgeable peer) is usually needed. Toyota is amazing in that they have created a culture of learning and teaching to support each other. For others outside the company, it is not as easy to surround oneself with true experts on an ongoing basis. Or, at a company level, it takes a long time to achieve the critical mass of true experts that can all reinforce the best behaviors.
To use another sports analogy, Michael Jordan could never have gotten as good as he did if he had not played in the NBA. Getting a company up to the highest level would be like creating a new league where all individuals have the talent to challenge and coach each other to be the best. That is not an easy task.
Now that I have read the “Chasing the Rabbit”, I feel I will be better at many of the skills mentioned in the book. I also think there are things I can do to get even better. However, I do not expect to ever have anywhere close to the same level of expertise as those who work at Toyota.
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There is and it is named BYD! They are on track to eclipse Toyota and win the EV market not only in China but worldwide!
Tha Japanese, and Toyota especially, get this: “Managers need to quit treating common cause variation as if it was special cause variation.” Say that to a mid-to-top level Japanese manager at a decent-sized company, and you would receive affirmation. Say that to most U.S. managers, and they would go looking for a Greek dictionary. Two major culprits to the current mess: 1.) our management education system or lack thereof; 2.) how we measure and reward managers. Re-read Deming; he had it figured out.