Toyota as a Learning Organization
History and background Toyota Motor Corporation or Toyota in short, is a Japanese automaker. It is the world's second largest automaker behind General Motors. However it ranks first in net worth, revenue and profit. It is also the only car manufacturer to appear in the top 10 of the BrandZ ranking. The company was founded in 1937 by Kiichiro Toyoda as a spinoff from his father (Sakichi Toyoda)'s company Toyota Industries to create automobiles.
In 1934, while still a department of Toyota Industries, it created its first product Type A engine and its first passenger car the Toyota AA in 1936. Its headquartered in Toyota, Aichi and Bunkyo Tokyo, Japan. It also provides financial services through its division Toyota Financial …show more content…
Because we got a good deal (price) on those gaskets. Change purchasing policies.
Because the purchasing agent gets evaluated on short-term cost savings. Change the evaluation policy for purchasing agents.
2. Use hansei: Responsibility, self-reflection, and organizational learning. This concept is about reflecting on mistakes or weaknesses and devising ways to improve. Hansei is a concept that Toyota uses as a practical improvement tool like kaizen. Toyota actually conducts hansei events to improve products and processes. As hansei is utilized, the improvements are fed back into the organization and disseminated.
3. Utilize policy deployment (hoshin kanri).This is Toyota’s process of cascading objectives from the top of the company down to the work group level. Aggressive goals start at the top level and each level develops objectives to support these goals. Many systems like this are being used at companies across the United States, but often they are failures because the objectives rarely support important company goals; they usually are put in place to ensure that an individual gets his or her incentive. At Toyota, objectives are always measurable and concrete, and they always support executive-level/company goals. The process as it permeates the organization follows the simple PDCA (Plan-Do-Check-Act) process. This ensures that the success is being measured and monitored on a regular basis.