Nov 20, 2020 in Case Studies

Toyota Company

Running head: TOYOTA 1




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Nowadays Toyota is releasing completely different products ranging from cars and robots to construction of luxury villas. This is a multifaceted company, known as the largest automaker in the world. Toyota came up with various concepts of management (for example, the system supplies "just in time" and Kaizen), which unfortunately failed to gain popularity in the world. This paper is devoted to the issue of the main features of management system of the company.

Key Learning Points

As it has already been mentioned above, the paper is about Toyota Company and its principles of work. The main learning points are to analyze the main principles of Toyota Company and identify how they can be realized in an American company.

Relevant statements to the session

The analysis will be focused on the policy of the company. The first part of the paper will deal with the main idea of the companys policy; whereas the second part of it will be more concerned with the issue of the main principles according to which Toyota Company works and treats its workers. The analysis will consider such principles as the 5S principle and the principle of kaizen.

Critical Analysis

The 50- 60s are the times when the factories of Toyota Company run an impressive upgrade. At that time, the company introduced the principles of kaizen.

Toyotas motto is confidence to people. This is culture rather than a set of techniques and methods to improve and increase efficiency. The company can reduce the amount of inventory to identify and address the underlying issues only with the help of the workers. If they are not responsible, do not understand the task that is given to them and do not know how to work in a team, the downtime will begin as well as stockpiling. Day after day, engineers, skilled workers, quality specialists, suppliers, team leaders and, most importantly, the operators are constantly engaged in solving problems, and it allows everyone to learn how to solve them. One of the tools of lean production that teamwork teaches is called 5S (sorting, straightening, systematic cleaning, standardization and self discipline). It is a complex of measures to eliminate losses, which lead to errors, defects and injuries. The most difficult component of the 5S is, perhaps, the fifth self discipline. It is the point that is crucial for the success of the other four. Maintaining such a company is impossible without the appropriate level of education and training; and the workers who have followed all the rules of operation and have improved their methods of work and their workplace should be encouraged. The things necessary for success in achieving goals are management's commitment to the approach, appropriate training and corporate culture. Only then maintenance and improvement will be a common practice for everyone from shop-floor workers and up to the leaders of the company. The companys guiding principles are grouped into four categories:

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philosophy of a long-term perspective;

the correct process gives correct results (it is about using a range of tools TPS);

every person should add value to the organization (about developing the employees and partners);

permanent solutions to fundamental problems encourage continuous learning.

Toyota exists primarily thanks to the people who work, communicate with each other, make decisions and develop improving themselves and each other. In this approach every person involved in the process is encouraged to participate and supported. However, the approach is not limited to Toyota. If one looks at other successful Japanese companies that operate on the system of lean production, it is immediately noticeable how actively workers make suggestions for improvements.


It is well known, that Toyota Company has many offices all over the world. In order to communicate with those offices and check their work the company has developed a system of video calls, inner monitoring of all the processes and facility performance data. The point is that an engineer from Japan can monitor the work of an employee from any plant. Such system of monitoring is rather useful and it may be implemented not only in such a big enterprise as Toyota; small companies may use such system of monitoring as well. First, it is significant to implement local network for monitoring one department and then all those local networks should be connected to one common server and to the Internet. This will allow employees to communicate with each other and managers not only within one department but also with those who are working in another office, building and even country.


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This study has become essential for my understanding of the employees policy not only in such a big company as Toyota; it has made me realize the ways to do future business so that every worker is satisfied. The point is that obviously the principles of kaizen work. Moreover, when a worker is happy with his/her work, the quality of work gets better, thus, the companys revenue rises. In my opinion, it is rather essential to learn how to build a correct companys policy so that everyone is satisfied.

On the other hand, I do not agree with the principle change or die. In my opinion, such practice keeps employees in fear that they do something wrong, thus, the quality of their work may lower. This, perhaps, is the only principle which I would never like to implement in my own business.


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