Toyota Quality Quotes

Every team member has the responsibility to stop the line every time they see something that is out of standard. That's how we put the responsibility for quality in the hands of our team members.

Standardization Is the Basis for Continuous Improvement and Quality

Our own attitude is that we are charged with discovering the best way of doing everything.

However, one intriguing shift that suggests there are limits to automation was the recent decision by Toyota to systematically put working humans back into the manufacturing process. In quality and manufacturing on a mass scale, Toyota has been a global leader in automation technologies based on the corporate philosophy of kaizen (Japanese for “good change”) or continuous improvement. After pushing its automation processes toward lights-out manufacturing, the company realized that automated factories do not improve themselves. Once Toyota had extraordinary craftsmen that were known as Kami-sama, or “gods” who had the ability to make anything, according to Toyota president Akio Toyoda.49 The craftsmen also had the human ability to act creatively and thus improve the manufacturing process. Now, to add flexibility and creativity back into their factories, Toyota chose to restore a hundred “manual-intensive” workspaces.

I believe benchmarking best practices can open people’s eyes as to what is possible, but it can also do more harm than good, leading to piecemeal copying and playing catch-up. As one seasoned Toyota manager commented after hosting over a hundred tours for visiting executives, “They always say ‘Oh yes, you have a Kan-Ban system, we do also. You have quality circles, we do also. Your people fill out standard work descriptions, ours do also.’ They all see the parts and have copied the parts. What they do not see is the way all the parts work together.” I do not believe great organizations have ever been built by trying to emulate another, any more than individual greatness is achieved by trying to copy another “great person.

He opens the passenger door of a white Toyota Prius and helps me inside. First herbal tea, now this. If it were possible for this guy to be getting less and less my type, he’s doing it in a hurry. Worse than a Muggle, he’s a vanilla Muggle. An herbal-tea-drinking, Prius-driving, vanilla Muggle policeman with gorgeous eyes. I guess we all have our redeeming qualities.

This operational excellence is based in part on tools and quality improvement methods

The biggest advantage of working in small batches is that quality problems can be identified much sooner. This is the origin of Toyota’s famous andon cord, which allows any worker to ask for help as soon as they notice any problem, such as a defect in a physical part, stopping the entire production line if it cannot be corrected immediately. This is another very counterintuitive practice. An assembly line works best when it is functioning smoothly, rolling car after car off the end of the line. The andon cord can interrupt this careful flow as the line is halted repeatedly. However, the benefits of finding and fixing problems faster outweigh this cost. This process of continuously driving out defects has been a win-win for Toyota and its customers. It is the root cause of Toyota’s historic high quality ratings and low costs.

The most important factors for success are patience, a focus on long-term rather than short-term results, reinvestment in people, product, and plant, and an unforgiving commitment to quality. —Robert B. McCurry, former Executive VP, Toyota Motor Sales

A key difference between Toyota and 3M is the scope of leeway for experiments. Toyota’s community of scientists works to perfect a system of production designed to remove unwanted variation and ensure perfect quality; the scope of experiments is limited for the most part to those that improve existing processes. At 3M, in contrast, scientists are invited to go wild, think outside the box, and imagine useful products that don’t yet even begin to exist. But in both systems, psychological safety plays a vital role.

Third-order consequences: Toyota winds up with the highest quality rates, lowest defect rates, and most efficient factories in the world.

An example is the campaign that Goodby, Berlin & Sil- verstein produced for the Northern California Honda Deal- ers Advertising Association (NCHDAA) in 1989. Rather than conform to the stereotypical dealer group advertising ("one of a kind, never to be repeated deals, this weekend 114 Figure 4.1 UNUM: "Bear and Salmon. Figure 4.2 UNUM: "Father and Child." 115 PEELING THE ONION only, the Honda-thon, fifteen hundred dollars cash back . . ." shouted over cheesy running footage), it was decided that the campaign should reflect the tone of the national cam- paign that it ran alongside. After all, we reasoned, the only people who know that one spot is from the national cam- paign and another from a regional dealer group are industry insiders. In the real world, all people see is the name "Honda" at the end. It's dumb having one of (Los Angeles agency) Rubin Postaer's intelligent, stylish commercials for Honda in one break, and then in the next, 30 seconds of car salesman hell, also apparently from Honda. All the good work done by the first ad would be undone by the second. What if, we asked ourselves, we could in some way regionalize the national message? In other words, take the tone and quality of Rubin Postaer's campaign and make it unique to Northern California? All of the regional dealer groups signed off as the Northern California Chevy/Ford/ Toyota Dealers, yet none of the ads would have seemed out of place in Florida or Wisconsin. In fact, that's probably where they got them from. In our research, we began not by asking people about cars, or car dealers, but about living in Northern California. What's it like? What does it mean? How would you describe it to an alien? (There are times when my British accent comes in very useful.) How does it compare to Southern California? "Oh, North and South are very different," a man in a focus group told me. "How so?" "Well, let me put it this way. There's a great rivalry between the (San Francisco) Giants and the (L.A.) Dodgers," he said. "But the Dodgers' fans don't know about it." Everyone laughed. People in the "Southland" were on a different planet. All they cared about was their suntans and flashy cars. Northern Californians, by comparison, were more modest, discerning, less likely to buy things to "make state- ments," interested in how products performed as opposed to 116 Take the Wider View what they looked like, more environmentally conscious, and concerned with the quality of life. We already knew from American Honda—supplied re- search what Northern Californians thought of Honda's cars. They were perceived as stylish without being ostentatious, reliable, understated, good value for the money . . . the paral- lels were remarkable. The creative brief asked the team to consider placing Honda in the unique context of Northern California, and to imagine that "Hondas are designed with Northern Californi- ans in mind." Dave O'Hare, who always swore that he hated advertising taglines and had no talent for writing them, came back immediately with a line to which he wanted to write a campaign: "Is Honda the Perfect Car for Northern Califor- nia, or What?" The launch commercial took advantage of the rivalry between Northern and Southern California. Set in the state senate chamber in Sacramento, it opens on the Speaker try- ing to hush the house. "Please, please," he admonishes, "the gentleman from Northern California has the floor." "What my Southern Californian colleague proposes is a moral outrage," the senator splutters, waving a sheaf of papers at the other side of the floor. "Widening the Pacific Coast Highway . . . to ten lanes!" A Southern Californian senator with bouffant hair and a pink tie shrugs his shoulders. "It's too windy," he whines (note: windy as in curves, not weather), and his fellow Southern Californians high-five and murmur their assent. The Northern Californians go nuts, and the Speaker strug- gles in vain to call everyone to order. The camera goes out- side as th

But in 1947, an American working in Japan turned that thinking on its head. His name was W. Edwards Deming, and he was a statistician who was known for his expertise in quality control. At the request of the U.S. Army, he had traveled to Asia to assist with planning the 1951 Japanese census. Once he arrived, he became deeply involved with the country’s reconstruction effort and ended up teaching hundreds of Japanese engineers, managers, and scholars his theories about improving productivity. Among those who came to hear his ideas was Akio Morita, the co-founder of Sony Corp.—one of many Japanese companies that would apply his ideas and reap their rewards. Around this time, Toyota also instituted radical new ways of thinking about production that jibed with Deming’s philosophies.

An Alternative to Goals A reporter once asked an official from Toyota whether the company achieved “six sigma” quality—a defect rate of around 3 in a million and also the name of a quality improvement methodology that is currently fashionable. His answer typifies the Boyd approach to goals: Basically, I would say that because of our evolutionary concept, whatever we were doing becomes the benchmark for what we do next. We hold onto what we were doing so that it becomes maintainable and it is the new steady state.140 This may seem like a masterwork of obfuscation, but it is entirely consistent with Toyota’s overall guiding concept: The Toyota Production System, quite simply, is about shortening the time it takes to convert customer orders into vehicle deliveries.141 This is one of the best vision / focusing statements in the world of business. Instead of setting arbitrary goals, it tells everybody who works for Toyota that whenever they are in doubt about what to do, take the action that will reduce customer-to-delivery span time. It sets a direction, not a goal, since wherever we are this year, we will be better next year.

Toyota, however, the drive for perfection is directed into five outlets: safety, quality, cost, delivery, and morale (SQCDM).

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The Lean Startup takes its name from the lean manufacturing revolution that Taiichi Ohno and Shigeo Shingo are credited with developing at Toyota. Lean thinking is radically altering the way supply chains and production systems are run. Among its tenets are drawing on the knowledge and creativity of individual workers, the shrinking of batch sizes, just-in-time production and inventory control, and an acceleration of cycle times. It taught the world the difference between value-creating activities and waste and showed how to build quality into products from the inside out.

The Toyota Way provides a model for fast, efficient, and effective execution of long-term strategy based on:   Carefully studying the market and planning in detail future products and services   Putting safety first for team members and customers   Eliminating wasted time and resources in execution of those plans   Building quality into every step of design, manufacturing, and service delivery   Using new technology effectively to work in harmony with people, not simply replace people   Building a culture of people who learn and think scientifically to achieve aligned, challenging goals

The core values lived by Sakichi Toyoda are still at the foundation of Toyota today: contribute to society, then prioritize the customer over the company, respect for people, know your business from the inside out, get your hands dirty, hard work, buildin quality, discipline, teamwork, and constant innovation toward a vision.

When Toyota invented its famous kanban system of just-in-time production, one of its quality control rules was that any employee on the assembly line could pull the cord to stop production if he noticed a quality problem.57 That

Car salesman turned governor. How it fried Dick Artemus to hear himself described like that--the snotty implication being that all car salesman were cagey and duplicitous, unworthy of holding public office. At first Dick Artemus had fought back, pridefully pointing out that his dealership sold only Toyotas, the most popular and reliable automobile on the face of the planet! A quality vehicle, he'd said. Top rated by all the important consumer magazines! But the governor's media advisers told him he sounded not only petty, but self-promotional, and that folks who loved their new Camry did not necessarily love the guy who'd sold it to them. The media advisers told Dick Artemus that the best thing he could do for his future political career was to make voters forget he'd ever been a car salesman (not that the Democrats would ever let them forget). Take the high road, the media advisers told him. Act gubernatorial.

As long as Toyota is continually identifying “anomalies” in the manufacturing process, every single defect is seen as an opportunity to make the process better. There are, in effect, a set of rules that ensure that this happens. For example, an employee must never add value to a part until it is ready to be used in the next step of adding value. It must be done in the same way, every time. That way managers know, definitely, that the value-adding step worked with the next step in the process. That creates an environment of repeated scientific experimentation. Each time it’s done the same way constitutes a test of whether doing it that way, to those specifications, will result in perfection every time. For Toyota, the theory was embodied in the set of processes they developed to lead to defect-free manufacturing. Each activity can be seen as an individual if-then statement: “If we do this, then that will be the result.” Through this theory of manufacturing, the quality movement was born. As a consequence, the Americans took what they’d learned from their Japanese competitors to heart and the US automobile industry today churns out very reliable cars. Innovation, in a very real sense, exists in a “pre–quality revolution” state. 1 Managers accept flaws, missteps, and failure as an inevitable part of the process of innovation. They have become so accustomed to putting Band-Aids on their uneven innovation success that too often they give no real thought to what’s causing it in the first place.

Theory of Constraints, Lean production or the Toyota Production System, and Total Quality Management.

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Myth #3: Kaizen Is Slow; Innovation Is Quicker Perhaps the most dramatic example of what can happen when innovation is used and abused is Toyota, a company that calls kaizen its soul. For most of its history after World War II, Toyota exemplified quality automobile manufacturing. Consumers bought Toyotas not for the styling or prestige but for their unparalleled reliability. But by 2002, Toyota management decided it was not enough to build the highest-quality and most-profitable cars—it wanted to be the biggest car company in the world. And the company succeeded. It built factories rapidly and added enough capacity to produce three million additional automobiles in just six years. But productivity came at a high price: Suppliers could not sustain the quality for which Toyota was known, and the new factories did not have the time to build a kaizen culture. The result was over nine million recalls and some well-deserved bad publicity. Here is an internal memo written before the crisis became public: “We make so many cars in so many different places with so many people. Our greatest fear is that as we keep growing, our ability to maintain the discipline of kaizen will be lost.” —Teruo Suzuki General Manager, Human Resources In time, Toyota recognized that abandoning kaizen drove the company away from a commitment to its core principles. Since the crisis, Toyota has slowed down production, given local managers in the U.S. more responsibility for quality control, and trained new workers in the kaizen culture. Toyota has returned to focusing on quality, not quantity, as its mission, with an emphasis on correcting defects in production while they are small and easily fixed. And Toyota’s reputation for quality has been restored. The company’s story is an excellent illustration of the ways in which kaizen builds habits that can last a lifetime and helps avoid the painful consequences of steps that may, in retrospect, have been too big for the individual or the work group to swallow.

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