The following session on The Toyota Production System gave us an understanding about the philosophy pioneered by Toyota to organize their manufacturing operations including logistics, supplier management, up to customer delivery. Its basic concept is the reduction of cost through elimination of waste and optimization of machine and human capabilities.
The attribute that makes it so incredible is the fact that Toyota was a company that literally had every possible obstacle for failure and yet Toyota has emerged as the largest automobile manufacturer in the world!
1. Japan being such a small country had very few natural resources and very little population. So both raw material and labor were extremely costly!
2. Japan is a land of Natural disasters where earthquakes and tsunami are frequent and could destroy your plants within a minute!
3. When Toyota was just 2 years into their business, world war 2 happened, where bombs were dropping from the sky, where let alone business even survival was a luxury!
4. After the Hiroshima Nagasaki bombing and world war 2 Japan’s economy was in complete ruins,
With all odds against them, it was in direct competition with the Giants of the United States like General Motors and Ford Motors! And yet, Toyota has emerged as such a successful automobile company that in 2008 it even became the largest car manufacturer in the world!
How? Checkout the PDF below to learn more.