Why the Toyota Process Works

For years, the automotive industry has been ruled by two companies when it comes to the all-around best-selling, most dependable vehicle. One of these is Toyota. Why? Because they are smart and know what works and keep consistently doing just that. Then, when they find what works better, they do that.

That’s, of course, just a nutshell explanation, and the actual Toyota brand has trademarked its philosophy of sorts for its production process. There is a lot we can learn from the power of the Toyota process and apply to our own business models, so I’d like to dedicate this post to delving into this process and why it works.

Toyota’s way of monozukuri (making things) is referred to as the “Toyota Way,” and it is a philosophy so respected that it’s been adopted not only by countless companies in Toyota’s native Japan but has also been made the “Bible” of production for entrepreneurs across the globe. It’s just that good.

An integral part of why this Toyota Way production system is so impressive—and what sets it apart as unique—is that its philosophy centers around the idea of always striving toward complete elimination of all waste in pursuit of the most efficient methods. In short, Toyota looks to achieve optimum efficiency. This production system has also come to be known as a “lean manufacturing system” or a “Just-in-Time (JIT) system.”

And before you go thinking that Toyota just somehow came upon this great idea and success boomed for them overnight, not so fast. Toyota’s history can be traced back generations, and the control system that we now see and experience is the product of meticulous and continuous improvements. The main objective of which was to make the vehicles customers ordered in the fastest, most efficient way, thus delivering Toyota cars as quickly as humanly possible to their clientele.

Officially known as the Toyota Production System (TPS), the Toyota Way can be summed up by two main cornerstones. The first is jidoka, which loosely translates to “automation with the human touch.” Basically, it means that when a problem arises, the equipment halts everything immediately, thus preventing any defective products from ever being produced. Talk about 100% effective quality control!

The second cornerstone is the “Just-in-Time” mentality, which is characterized by an approach where each stage in the production process only produces what is needed for the next process, and in a continuous flow. When these two cornerstones work together in tandem, this Toyota Way creates a production process that is one lean, mean, well-oiled machine (or machines). And the end product(s)? Vehicles (many, many of them) that are not only of good quality, but that keep customers happy and coming back year after year for newer models as they continue to evolve.

And while talking about this revolutionary philosophy, I’d be remiss if I didn’t also point out Toyota’s stringent “waste not, want not” mindset. As well as being aligned with the second cornerstone, which pointed out how defective products are never produced and how this directly addresses quality control, the company also sees waste as manifesting itself as excess inventory, unnecessary and “wasteful” processing steps, and other such things. And none of which Toyota deems acceptable, whatsoever.

There is so much from the Toyota Way that we can apply to how we run our own businesses—from continuous improvement and flow to effective quality control. As you can see, Toyota runs a pretty tight ship, and clearly, that has led (and continues to lead) to smooth sailing, with no end in sight.