Toyota Production System: A Case Study Of Toyota's Management System

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Toyota's management system, officially known as the Toyota Production System (TPS) has patterned its management strategy from the scientific management. Taiichi Ohno, a former president of Toyota, studied the work of Fredrick Taylor and invented the "TPS": Toyota Production System. The purpose of this production system was to prevent inconsistency in the work and eliminate wastes or delays. The company did not want their workers to stand, wait and attend machines. The workers were required to use both hands and move continually working multi-machines in the factory (Takeuchi, 2008). “Toyota views employees not just as pairs of hands but as knowledge workers who accumulate chie—the wisdom of experience—on the company’s front lines” (Takeuchi, …show more content…
Toyota provides training to improve the managerial skills of managers and overseas training program, where employees have group training and spend several months learning practical skills in work sites. Toyotas success on their business is due to the respect of each individual's creativity and good teamwork. The company provides fair working conditions and maintains a safe healthy working environment for all the employees. Communication with employees help create "Mutual Trust and Mutual Responsibility". Among the division of work and responsibility the managers take charge of all the processes and the workers. The managers then evaluate all of their work by the end of the day, week or even month. The managers sometimes also work or partner with the employees in order to create a standard work (Liker, 2004). In the company’s cooperation between managers and workers the company looks at how managers handle issues; how they implement organizational skills; and how they interact, develop and inspire the workers (Takeuchi, …show more content…
One of Toyota’s organizational culture focuses on innovation since it encourages innovation at each stage of product design and process (Sidhu, 2015). The ideology of the company is based on Kaizen, which means making continuous improvements in encountering various problems and risks of all aspects of the company. Toyota employees are encouraged to encounter challenges and come up with fresh ideas for the identified problems (Meyer, 2015). Team work is another important aspect of Toyotas organizational culture. Toyota uses teams in most of its business areas and strives hard to maintain and promote it. It is believed by the company that the collaboration of teamwork leads to greater capabilities and success. The management of the company promotes team work by giving due recognition to workers across all levels. Employees are usually divided into their respective teams depending on their roles and they get a certain degree of job freedom and responsibility for assigned tasks (Fang, Samsong and Brian H. Kleiner, 2003) The company works to ensure that employees and managers work together in harmony without any sort of discrimination: same uniform, lack of executive parking areas, and common dining rooms and offices all help to provide equal opportunity for all

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