SCIENTIFIC MANAGEMENT OF TOYOTA
Updated: Mar 5, 2022
Executive summary: This report is a brief overview on how Toyota uses scientific management while manufacturing products. It will first introduce the topic ‘Scientific management’ and the principles of scientific management. It will then give background information about Toyota and the manufacturing system of Toyota which is also called Toyota Production System. At the last it will tell how Toyota uses the principles of scientific management while manufacturing automobiles.
Table of content:
1.0 Introduction
2.0 Scientific management
2.1 Introduction to scientific management
2.2 Principles of scientific management
3.0 Toyota
3.1 Formation
3.2 History
3.3 Toyota Production System
4.0 Scientific management of Toyota
4.1 Science and Technology
4.2 Selecting and Training
4.3 Good relation between employers and employees
4.4 Splitting responsibility and encouraging employees
4.5 Saving time and resources
4.6 Kanban system
4.7 JIT production
5.0 Conclusion
6.0 Reference
1.0 Introduction: This report focuses on Toyota applying principles of scientific management and using it for its manufacturing process. The motive of this company is to sell, design and manufacture automobiles and it provides after sale services for its product. The report first defines scientific management. Scientific management is a theory introduce by Frederic Taylor for better and quick way to manage things (The Economist, 2009). Then it states the principles of scientific management. It gives an overview about Toyota. Toyota was found by Kiichiro Toyoda. Toyota managed to survive in difficult situation in past such as world war II (Toyota UK, 2019). Then the report informs us about the Toyota production system. The main structure of the production system of Toyota is having a control over production (Monden, 2011, p. 6). Then the report tells how Toyota uses the principles of scientific management in its production method. It uses the methods such as Kanban system, Just in time production, Baka-Yoke, TTEN and many more. Then the repot is concluded by a brief summary.
2.0 Scientific Management:
This section describes scientific management and gives a gist of principles of scientific
management.
2.1 Introduction to Scientific management: Scientific management was introduced by Frederic Winslow Taylor (The Economist, 2009). Frederic Taylor believed that there was a link between machine-based production and labour. He improved the administrative system of stock control and record keeping (Boddy,2017, p.46). The main objective of management is to maximise prosperity for the owner and the employees. He presumed that to achieve maximum prosperity each worker had to put in their 100% effort (Taylor, 1917, p. 9). In this type of management manager should plan the work of every employee at least a day prior, the plan should also include the time allowed for doing the task and how to do the task (Taylor, 1917, p. 39).
2.2 Principles of scientific management: 1) Scientific methods should be used to complete a task in spite of traditional methods.
2) Select the perfect suitable person for the job by matching their mental and physical level.
3) Employees get financial incentives to follow procedures precisely.
4) Managers taking responsibility for organising and planning.
(Boddy, 2017, p.46) (Taylor,1913, p. 140)
5) Employees should be taught and trained to complete a task by following the procedures.
3.0 Toyota: This section gives a background information about Toyota and describes the Toyota Production System.
3.1 Formation: The weaving industry was revolutionized by Sakichi Toyoda in 1918 with his innovation of automatic loom. He sold his patent to a British firm to provide finance to his son Kiichiro for developing car industry. The first prototype car Toyoda AA was completed in 1936. Which led to the formation of Toyota Motor Corporation in 1937 (Toyota UK, 2019).
3.2 History: The name of Toyoda was changed to Toyota due to Japanese religious believes. In spite of American dominated Japanese car market and World War II Toyota managed to survive. In 1950s a new system was founded by Toyota to manufacture vehicles. It was further developed into the Toyota Production System (Toyota UK, 2019).
3.3 Toyota Production System:
A group of principles originated by Toyota for a good quality manufacturing is known as Toyota Production system. In this system the product is moved through without any waste of time. There is no product built until they have a demand for the product which helps to reduce wastage and overproduction (Stecher, et al., 2004, p. 35).
Every activity while production in Toyota factory is pre planned but then too the operations are responsive to customer demand and flexible. All the operations conducted by Toyota can also be called controlled experiments. Scientific method of production is ingrained in workers rather than imposing it to them (Bowen et al. (1999).
The main structure of the production system of Toyota is having a control over production (Monden, 2011, p. 6). The production system of Toyota uses methods of scientific management such as Kanban system and JIT production system, these are the methods of scientific management and are described in detail on next page.
4.0 Scientific management of Toyota: This section indicates how Toyota is applying scientific management while manufacturing.
4.1 Science and Technology:
Toyota uses automation with human intelligence rather than automation. It means a machinery or a production line is stopped if an abnormal situation arises. It helps in reducing defective products and overproduction (Ohno, 1988).
Toyota uses Baka-Yoke. It is a concept which helps to produce good quality products. It ensures that when a step is missed the next process will not be able to start (Ohno, 1988).
4.2 Selecting and training:
Toyota selects people which are physically and mentally fit for the job (Boddy, 2017, p. 46).
To improve the quality of the new workers Toyota has launched a program known as T-TEN “Toyota Technical Training and Education Network” (Hollembeak, 2016).
Toyota provides training to every worker so that he/she can identify any problem occurred due to their work and then rectify it (Johnston, 2001).
4.3 Good relation between employers and employees:
Toyota believes that the workers are the main reason behind the success of their company as every task is completed with teamwork and new ideas (Hartmann and Halecker, 2015)
Toyota helps to improve the employee rather than fixing the problems created by them (Hartmann and Halecker, 2015).
4.4 Splitting responsibility and encouraging employees:
Toyota encourages employees by giving them rewards for their better performance and creates a corporate culture for giving the workers healthy environment (Stewart, 2016)
Toyota creates work-cells which are grouped by products to improve efficiency. Managers are responsible for the division of work between employees (Liker, 2004, p. 93).
4.5 Saving time and resources:
Toyota produces required quantity at the given time to reduce the wastage of resources (Monden, 2011, p. 7).
Multi process handling is a system used by Toyota which allows a worker to use three types of machines at the same time (Monden, 2011, p. 14).
4.6 Kanban system:
In Kanban system there is a tag called Kanban on which the quantity and types of unit requirements are written which is passed from employees of one process to the employees of another process. This process connects different process in a plant (Monden, 2011, p. 9).
FIG. 1- This figure describes the process of Kanban system (Monden, 2011, p.10)
4.7 JIT Production 1) Toyota uses Just in time production for improvement of the company. In Toyota employee from one process withdraws units required from preceding process, then the preceding process produces more units to replace those have been withdrawn. This method is known as pull system (Monden, 2011, p. 8).
5.0 Conclusion: This report concludes that Toyota has applied scientific management in their production due to which they are experiencing growth and have stayed in market for more than 80 years. They provide a healthy environment to their employees and train them to deal with difficult situations. Toyota uses technology with human support which improves their processes. The production methods used by Toyota not only improves their present situation but also secures their future.
Reference:
Boddy, D. (2017) Management an introduction. 7th ed. Pearson Education Limited, United Kingdom, P. 46.
Bowen, H. K. and Spear, S. (1999) Decoding the dna of Toyota production system, Harvard Business School Working Knowledge. Available at: https://hbswk.hbs.edu/item/decoding-the-dna-of-the-toyota-production-system [Accessed 24 Nov. 2019].
Hartmann, M. and Halecker, B. (2015) Management of innovation in the industrial internet of things. In ISPIM Conference Proceedings, p. 1.
Hollembeak, B. (2016) Toyota TTEN. Delmar Cengage Learning.
Johnston, S. J. (2001) How Toyota turns workers into Problem Solvers, Harvard Business School Working Knowledge. Available at: http://hbswk.hbs.edu. [Accessed 25 Nov. 2019].
Liker, J. K. (2004) The Toyota way. McGraw-Hill, United States of America, p. 93.
Monden, Y. (2011) Toyota production system: an integrated approach to just-in-time. Productivity Press, p. 6-14.
Ohno, T. (1988) Toyota production system: beyond large-scale production. crc Press.
Stecher, B.M., Kirby, S.N., Barney, H., Pearson, M.L. and Chow, M. (2004) Organizational improvement and accountability: Lessons for education from other sectors. Rand Corporation, P. 35.
Stewart, H. (2016) 12 ways in which Toyota creates a great workplace. Available at: https://happymanifesto.com/2016/12/05/12-ways-toyota-create-great-workplace/ [Accessed 24 Nov. 2019]
Taylor, F.W. (1913) The principles of scientific management. Harper, New York and London, p. 140.
Taylor, F.W. (1917) The principles of scientific management. Harper, New York, p. 9. Taylor, F.W. (1917) The principles of scientific management. Harper, New York, p. 39.
The Economist (2009) Scientific management. Available at: https://www.economist.com/news/2009/02/09/scientific-management [Accessed 25 Nov. 2019].
Toyota UK (2019) Our History. Available at: https://www.toyota.co.uk/world-of- toyota/careers/tgb-history [Accessed 25 Nov. 2019].
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