Management of Technology and Innovation in Japan

Implementing Process Innovation – The Case of the Toyota Production System 187
lence is based in part on tools and quality improvement methods made famous by
Toyota – with roots in the United States – in the manufacturing world, such as
kaizen, jidoka, just-in-time, and heijunka. Tools and techniques are one part of
Toyota’s approach to be better than the competitors. But the success at implementing
these tools stems from a deeper business philosophy based on its understanding
of people and human motivation. According to Liker (2004, p. 6) the “success
is ultimately based on its ability to cultivate leadership, teams, and culture, to devise
strategy, to build supplier relationships, and maintain a learning organization.”
So, in this contribution special attention will be paid to the tools and also to
the philosophy of the Toyota production system.
Two central issues for discussion in this chapter arise from these preliminary
observations. On the one hand, we examine the question of which central factors
have influenced the development of the key features of the Toyota production system;
in other words, where were its roots, where were the important factors shaping
the tools and the philosophy. On the other hand, we look at the issue of
whether the strength of Toyota production system, derives from its nature as a dynamic
rather than as a static system, from the fact that constant change is inherent
in the Toyota production system, forming the basis for a flexibility which ensures
that the system can survive in the face of rapidly changing competition and market
constellations. In other words, can the Toyota production system be understood as
a key factor in the corporate processes of learning, adaptation and improvement,
as the key factor in a learning organization? Are change and continuity the main
characteristics of the Toyota production system and which challenges is Toyota
facing in the future?
Technology and Knowledge Transfer
A look back at the development of Toyota production system reveals that the
global successes of Toyota over recent decades can be linked in no small part to
technology and knowledge transfer and the associated advances in organizational
learning. One of the areas in which the success of Toyota production system crystallized
was automation technology and, following on from that, the development
of the autonomation system (jidoka) at Toyota and the just-in-time system which
will be examined in greater detail later. Successful transfer and further development
of advanced technologies from the USA and Western Europe were important
prerequisites for the emergence of a specifically Toyota production system and
also therefore for the unstoppable business and technological advance of Toyota
following World War II.
Adopting and improving technology from the United States and Western
Europe, increasing productivity with new forms of work organization, management
and staff development together with autonomation technology, a nation-wide
program to improve quality based on the thinking of the Americans Deming and
Juran coupled with a high degree of flexibility were the key elements that enabled
also Toyota to catch up quickly with advances in organizational learning. Ohno