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Tuesday, July 27, 2004
 
The Toyota Production System Has Legs

Read Business 2.0 if you are interested in great business journalism. The latest issue describes the Toyota Production System (TPS) effect on industry. Toyota Retools Japan is reason enough to spend the $4.95 for unlimited access to the site. Don't take my word for it. Check out the latest issue. You'll need the newsstand access code 'B2AUG1099'.

The Toyota Production System has legs. I've been writing about the influence TPS is having on the delivery of projects. The bigger story is how Toyota executives are remaking one industry after another in Japan.

(C)ompanies mimicking Toyota are going about things in a new way. In the past, TPS projects were typically led by middle managers whose resumes did not include stints with Japan's largest auto maker. Commitment from senior management tended to be lukewarm at best. Now that consulting and job switching are more common in Japan, however, Toyota veterans are available to lead the change.

There's nothing new in the description of the approach. Visibility management (5S) coupled with demand-driven production management and continuous improvement are turning in stellar results. But just as in the past, people continue to misunderstand the strength of the TPS. At the root, the TPS is a coherent set of principles for creating highly effective processes in any industry.

Read the article. Read the HBR article Decoding the DNA of the Toyota Production System, by Spear and Bowen. Read Lean Thinking, by Womack and Jones. Then, get started redesigning you processes and your projects.

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