An interview with Toyota Motor
Corporation`s former Senior Managing Director, Mr. Yasuhito Yamauchi
Angela Corriero of Chase
Performance had the opportunity to sit down with Mr. Yasuhito Yamauchi to
discuss his views on sustaining
continuous improvement and harnessing internal know and innovation.
Managing Success
“Effective TQM and
improvement implementation starts with the thorough implementation of the job`s
basic work standards. After a work standard has been decided, it has to be
practiced exactly.
In order to practice
the standards perfectly, staff must know the true meaning and value of each
standard – not only in theory. They must have the skill and knowledge to put it
into practice. Then, it is the supervisor`s duty to check and confirm the
standards have been put into practice exactly.
The role of the supervisor
is a very important one. Education and training to supervisors is essential.
We create standards
based on the supervisor`s skill and knowledge; with the benefits for the
company in mind.
Supervisors are the
link between the front line staff and upper management.
When is it time for
improvement?
Sometimes,
implementation of the work standards is not enough. The operators may carry out the work sequence
and standards but feel some uneasiness – this is the time for them to suggest
improvement.
The key: create a
working environment where workers can suggest improvements.
Work standards must
be followed, but once staff realise that a particular standard is not
enough, it is the time for change.
When
there is a need for improvement, supervisors must be able to improve the work
sequence or fix the problem.
On workforce
management
Upper level (above
supervisors) must understand the continuous improvement philosophy.
Actually, it`s front
line staff`s ideas and suggestions which must be absorbed into the upper levels
of management. Continuous improvement implementation is truly a bottom- up
approach to effective management.
In the West, there is
a separation between blue collar and white collar workers. Blue collar workers must follow white collar
rules.
This inhibits
effective improvement, total participation and employee motivation – This
inhibits cost reduction and profit maximization.
Good
Communication breeds success.
How success is
culminated, one step, one worker at a time.
A company is built up
by a culmination of individual efforts. Section to department to Company wide.
This is something
we`ve been doing at Toyota from the beginning.
It`s nothing special, just the way of doing business.
Material costs are
pre-determined by the market. Therefore, our strategy has long been:
Increase
Performance Rates to
Increase
Profit.
The
Key:
recognise waste and minimise it.
When busy, it is very
difficult to reduce waste, and implement continuous improvement and 5s
consistently. After the Global Financial
Crisis, it became easier to do this as we had lower production demands. The results have been impressive.
Although,
we have not reached our Global Financial Crisis production levels, our profit
level has been increasing rapidly.
This is the power of
the Toyota Production System fundamentals of
standardisation, 5s and continuous improvement.
Motivation is Key!
Unless we have
vitalised front line staff, we cannot be successful. They are the ones who actually produce the
product and the profit.
Our job in
management, is to make them energised.The corporate culture must be vitalised.
At the factory sites,
I tell staff, “you are the people who actually create profit through your
skills and wisdom. Material costs are pre-determined by the market. How do we increase profits? You. Through your
skills and performance.”
Unless employees are
motivated, we cannot create a good, attractive company.
Managers, directors
and supervisors must understand this or their system won`t work.
“As a leader, I have
to communicate the corporate vision to all members of the company and must show
that we are very concerned about our vision and our future direction.
Whenever I have time,
I visit the Gemba of all divisions. I visit people. Because I am in a high
position, If I call others to come, it`s no good. No, I go to them.”
Mr. Yamauchi praised
Proctor and Gamble`s corporate philosophy, “Proctor and Gamble share the same
idea. They pay good attention to employees.
We see things in common among excellent companies throughout the world.”
