There are two pillars of Toyota’s production system. These are just-in-time and auto-activation (jidoka). The Toyota production system lay in the simultaneous implementation of these two pillars, on condition that jidokaprecedes just-in-time, the former being an indispensable precondition for the implementation of the latter. Now let me describe the two pillars of Toyota’s production system. 1. Auto-Activation (Jidoka) – its aim is to delegate responsibility to the workers for the quality of products form the elementary production tasks themselves.
In practice this innovation means that line workers not only have the right, but are obliged to take the time which is necessary in order to carry out the tasks necessary to ensure the maintenance of the highest quality standards at each stage of production, even while production is taking place. 2. Just-in-Time – JIT as a method of production programming involves a series of innovation in the production and the preparation of the work more generally in the logistics of production and in the management of the flows and stocks of intermediate and semi-finished goods.
These innovations take together constitute a system of production with very reduced stocks, made possible a system of information processing unique and unprecedented in the history of work organization (Coriat 2001). In order to become competitive and to be able to be successful in a highly competitive market the Toyota focuses on the dimensions of : * Speed – the organization must be able to respond to customer and market demand fast. In addition, the organization needs to introduce new ideas and technologies to improve its products.
Perhaps one of the advantages of Toyota over American auto manufacturers such as General Motors is its ability to produce cars more faster and more efficient. * Consistency – the focus is to consistently produce products that satisfy the customers. Toyota is able to continuously produce attractive, low-cost and fuel-efficient vehicles to America. As a result, the Japanese car manufacturer was able to rival American car manufacturers. Toyota with its systematic mode of production boasts consistence among their products. Acuity – the organization needs to effectively analyze the competitive market in order for it to understand the needs and requirements of the customers. The taste and attitude of consumers are changing. It is important to be able to analyze the needs and requirements of the consumers and be able to satisfy these at the right time. When it comes to the installation of new technology, the Japanese car manufacturer takes a different approach from Ford and General Motors.
General Motors and Ford are often quick to install new technologies in their product. Many consumers often resist this move since most of enthusiasts prefer traditional design and feel. Japanese factories on the other hand prefer to customize existing systems and equipment rather than installing the latest fancy technology. * Agility – the organization needs to be able to adapt to different business environments. To be more agile Toyota tries to reduce production time by eliminating unnecessary levels of production. Innovativeness – the organization must be able to generate new ideas and to combine existing elements to create new sources of value. Toyota is innovative when it comes to the system of production and management of people. The company follows the principle of Kaizen. Kaizen teaches individuals skills for working effectively in small groups, solving problems, documenting and improving processes, collecting and analyzing data and self-managing within a peer group.