Toyota's leader, Toyoda, discusses TPS and his quest to reassert control on the factory floor
In Tokyo, on January 13, Chairman Akio Toyoda delivered a lecture titled "What TPS (Toyota Production System) Means to Me - The Fight to Restore Authority to the Genba" to a 200-strong audience of corporate managers and executives. This event marked a significant moment, as the son of a Toyota director, born in 1956, shared his personal management philosophy.
Akio Toyoda's journey began at the Motomachi Plant, where he found solace and was treated as a human being, not as a founding family member. His first encounter with the NPS Management Institute, an organization of manufacturing companies celebrating its 40th year, was in 1999.
The Management Institute, launched in 1982 by Mikiya Kinoshita, Kagetami Kawasaki, and Masahito Hoashi, aimed to establish the New Production System. Taiichi Ohno, the former Toyota Motor Co., Ltd. Vice President who codified TPS, was the first chief advisor of the institute.
Akio Toyoda's experiences with TPS shaped his philosophy significantly. TPS, with its lean manufacturing principles and emphasis on respect for people, has two pillars: Just-in-Time and Jidoka, or "automation with a human touch." Just-in-Time means minimizing lead times, while Jidoka is about ensuring genba operations are set up to stop when abnormalities are detected.
Akio Toyoda's philosophy is centred on continuous improvement (kaizen), hands-on leadership (Genchi Genbutsu), and fostering a positive, inclusive corporate culture. He is deeply committed to regularly reviewing and improving Toyota’s processes through direct engagement with operations and quality teams, emphasizing high product quality and employee development.
Key elements of his philosophy include Genchi Genbutsu, visiting the actual place to understand issues firsthand, rather than relying on reports. Kaizen, a relentless pursuit of incremental improvements in all processes and products, is also crucial. Respect for people is another key element, building a workplace culture where every employee’s contribution is valued, with ample training and growth opportunities.
A philosophy of working with consideration for others, which Toyoda has repeated as central to Toyota’s values, is also a part of his leadership style. This "for someone other than yourself" mindset is a reflection of his personal experiences.
During his term as president, Akio Toyoda made decisions based on what he saw and heard in the genba with his own eyes and ears. A key role of top leadership, according to Akio Toyoda, is deciding when it is time to quit, for the sake of future generations.
Akio Toyoda's love for cars was sparked when his father took him to the 3rd Japanese Grand Prix as a present for his tenth birthday in 1966. After graduating from university, he worked at an American investment bank, seeking to learn about money flow and financial technologies, and to establish his own life separate from Toyota. However, he eventually joined the Toyota Motor Corporation, seeking to discover his identity amidst being seen as "the Toyota prince."
The NPS Management Institute currently has more than 45 member companies or one per industry. Shigeki Tomoyama, Toyota Executive Fellow, became the fourth person to serve in the role last year. Akio Toyoda's deep-rooted TPS philosophy, skills, and conduct enabled him to fulfill his role as the person responsible for Toyota.
This hands-on and human-centric approach helps to maintain Toyota’s innovative edge and operational excellence. Toyoda’s management philosophy is a direct extension of TPS principles, blending operational rigor with human respect, continual learning, and improvement to drive sustainable success at Toyota.
[1] Toyota Global Website. (n.d.). Akio Toyoda. Retrieved October 24, 2021, from https://global.toyota/en/newsroom/leadership/1975131.html
[3] Toyota Global Website. (n.d.). Toyota Production System (TPS). Retrieved October 24, 2021, from https://global.toyota/en/about/production/tps/index.html
finance: Akio Toyoda, after graduating from university, worked at an American investment bank, seeking to learn about money flow and financial technologies.
business: Akio Toyoda's deep-rooted TPS philosophy, skills, and conduct enabled him to fulfill his role as the person responsible for Toyota, maintaining Toyota’s innovative edge and operational excellence, which are key elements in any successful business.
