An in-Depth Study of the Success of the Kaizen Philosophy

In: Business and Management

Submitted By theusername
Words 3512
Pages 15

Toyota Motor Company recently claimed number one spot in global sales in the auto industry. Many practitioners of the “Toyota Way” concur that Toyota is the model company to imitate, but recent years Toyota has seen a decline in their core competence of quality control. Weaknesses to social and environmental fluctuations have had negative effects on Toyota’s continued profitability. Analysis of strategy and execution precedes recommendations for improving Toyota’s implementation of its famed kaizen philosophy.

Toyota Motor Corporation (NYSE: TM) is a multinational corporation with headquarters in Japan. They are the world’s most profitable automaker, now having 15% market share in the U.S. (Taylor, 2007) They sold 2.5 million cars and trucks last year alone, causing them to displace Chrysler’s Big Three position in car sales in the U.S. Soon Toyota estimates it will beat out Ford’s sales, and not too distant in the future it will beat GM as well.
Toyota has an admirable presence in the U.S., and even Fortune magazine has named Toyota as one of America’s Most Admired Companies—twice in a row. Toyota has returned the gratitude from the U.S. by deciding to enter in to NASCAR racing, and also by introducing the American-targeted Toyota Tundra full-sized pick-up truck.

By no means does Toyota rely solely on the U.S., as their ability to turn out a quarterly profit in the last quarter of 2007—when the U.S.’s economic downturn caused stagnation—proved, as they had a 7.5% rise in profit due largely to their marketing in emerging markets such as China, Russia, and others. (Toyota net, 2008) In fact they profited $4.3 billion, ahead of most industry estimates.

CURRENT PERFORMANCE Price Average 50-day:

Similar Documents

Graduate Study Challenges and Strategies for Success

...Graduate Study Challenges and Strategies for Personal Success “Do not follow where the path may lead. Go instead where there is no path and leave a trail.” This famed quotation by one of the most influential American essayist and poet, Ralph Waldo Emerson, inspired me toward my journey to pursue graduate study. Taking the first step toward this journey is the most difficult. I understood that challenges will be inevitable in this path and implementing strategies to face these challenges is crucial for my success. I gained significant experience in both my academic and professional career over the years. I realize that I have the determination to accomplish goals and the necessary means to envision success. I have a variety of reasons I chose to pursue graduate study, both personal, and professional. Personally, I want to teach my children the importance of education in one’s life and to inspire them to aim for academic excellence. Professionally, I am very passionate about Nursing and about improving the quality of care given to patients. My ultimate goal is to influence change in the health care field as an educator or as an administrator. I want to inspire others to be excited with Nursing and be more involved in creating best practices that affects health care. I also want to ensure that I am more marketable to advance in my career. Graduate study paves the way toward the realization of these aspirations. Three Challenges that I will face in Meeting my Goals ...

Words: 1849 - Pages: 8

An in-Depth Study of Counseling in Organizations: Causes and Implications

...Running head: WORKPLACE COUNSELING An In-depth Study of Counseling in Organizations: Causes and Implications Goh Chong Ying Student ID S10063597D Ngee Ann Polytechnic An in-depth study of counseling in organizations: Causes and implications According to Carroll (1996), in current workplace situation, workers are working longer hours than before with no additional capital support and there might be chances that employees are doing the same amount of work with lesser pay, hence many employees face a high level of stress (p. 1). Many tried to overcome it. At the same time, employers and health professionals are also trying to help the employees in searching for new methods in handling stress and unavoidable after effects (Carroll, 1996, p. 1). There are many benefits for employers to be more concern on both the physical and mental health of the workers. Companies, who have healthy employees, tend to do well. It will increase the profits of the company and improve the superiority of the goods and services. Thus, Carroll (1996) reported that an increase is seen in providing amenities for workers to keep themselves fit physically and mentally (p. 3). According to Carrol (1996), some organizations provide internal counseling, external counseling, and education for workers in stress management (p. 3). In this report, causes, effectiveness and benefits of counseling will be covered. Firstly, one of the reasons why counseling is necessary in a workplace environment is......

Words: 1944 - Pages: 8

Kaizen: a Simple and Powerful Philosophy

...Auburn University | Kaizen | A Simple and Powerful Philosophy | Justin Willette 11/16/2012 | Table of Contents Introduction3 The Meaning of Kaizen3 History4 Goals of Kaizen4 Tools of Kaizen6 Implementing Kaizen7 An Example of Kaizen9 Other Applications11 Conclusion12 Bibliography13 INTRODUCTION Kaizen is an idea with humble beginnings that has taken hold of the manufacturing world and grown to become a powerful tool that can be harnessed to become a dominate player in the industrial world. The philosophy of Kaizen is a simple idea. It aims to continually make small changes anywhere it can in a process in order to improve the overall process. Kaizen focuses on a few key concepts to create a lean manufacturing system. The Kaizen system includes many components such as quality circles, just-in-time delivery, 5S, kanban, and many more. These tools are utilized to implement Kaizen. The Kaizen philosophy has been applied to many different industries all around the world. THE MEANING OF KAIZEN The Business Dictionary defines Kaizen as the “Japanese term for a gradual approach to ever higher standards in quality enhancement and waste reduction, through small but continual improvements involving everyone from the chief executive to the lowest level workers.” ("Kaizen") There are a few key phrases in this definition that truly illustrates the Kaizen way of thinking. First, this definition states that Kaizen is an approach to......

Words: 4068 - Pages: 17

Graduate Study Challenges and Strategies for Success

...Graduate Study Challenges and Strategies for Personal Success HCS/504 August 6, 2012 John Dean Graduate Study Challenges and Strategies for Personal Success According to Linda Weston Kramer “Retuning to graduate school is a major decision in one’s professional life. Although there are many benefits to returning to school to earn a graduate degree, it is also very challenging” (Kramer, 2007, p. 158.). This essay discusses various challenges faced by graduate students, and strategies to overcome the challenges, from personal perspective. Personal and professional goals It is important to set personal and career goals before pursuing graduate study. Students need to discover the various courses offered, and select the one suit for them. This contributes a great deal of success because they choose what they want to, and where they want to reach. Goal setting and working toward achieving the goal is the key for success. My main long-term goal is career development. I want to complete my program within two years and find a job in Nursing/Informatics and go up in the ladder. When considering my short-term goal, I want to keep my GPA above 3.5, and acquire as much knowledge from this program by using the resources available. I want to improve my communication skills both written and verbal, and graduate study is the best platform for achieving that goal. It is important to prioritize the goals and choose the right path. Self-assessment and closely checking the......

Words: 1054 - Pages: 5

Case Study Success

...already possess all of the resources and capabilities required to successfully implement the plan and the plan should clearly take advantage of opportunities and avoid serious threats. Where inconsistencies emerge, you should clearly address how you will overcome the obstacles. Some questions you might address include: Is Product Differentiation Critical to Success? If yes… • What is the assortment of product features that will attract and satisfy our customers? Give specific details and examples. • What customer services are necessary to supplement our core offering? • Does the firm currently have the resources and capabilities to provide these product features & services? • Does the firm have sufficient personal selling resources and capabilities to ensure adequate distribution channels? • Can the firm capture sufficient price premium or build sufficient volume to be profitable? • Is product differentiation consistent with the stage of the product life cycle for the product category? Is Brand-Centric Differentiation Critical to Success? If yes… • How much & what types of communications will be necessary to build or maintain brand awareness & equity? Give specific details and examples. • How much are competitors spending on brand-centric positioning and advertising? • Does the firm currently have the resources and capabilities to identify and develop an effective......

Words: 1505 - Pages: 7

Good Study Habits for Academic Success

...Good Study Habits for Academic Success: 1. Pay Attention to Study Location Find a quiet, uncluttered, distraction-free area. Try a few locations until the ideal study place is discovered. Different spots may work for different subjects, too. Whatever the location, leverage powerful new mobile, interactive study solutions that allow high school and college students to better prepare for tests and course work through any portable device from anywhere, at any time. Such engagement helps students better prepare and minimizes stress, providing everything needed to study in one place, including hundreds of practice questions, detailed explanations, guided study plans, and high-quality reading content from the world's most respected publishers. 2. Vary Study Topics Psychologists say alternating study topics rather than cramming on a specific one in a single session leaves a deeper impression on the brain. So, don’t grind on the same subject all night. Change it up, take breaks and re-visit the material in intervals - even spacing over a period of days if possible, which has been proven to enhance retention even further. 3. Make Information Meaningful Whether it's creating rhymes or patterns, or even relating material to something else perhaps through word or scenario associations, such tactics can make information more meaningful and, thus, will enhance information recollection. The University of Maryland reports that mnemonic devices, or memory tricks, are particularly......

Words: 523 - Pages: 3

Success Enterprises Case Study

...SUCCESS ENTERPRISES CASE ANALYSIS CORE PROBLEM- Poor Management Skills which is minimizing the level of production with the company. SATELLITE PROBLEMS The satellite problems stem from the lack of performing the four functions of management which is Planning, Organizing, Leading and Controlling. Planning Planning creates procedures, rules and guidelines for achieving a stated objective or goal. It is important because it provides direction, reduces risks and wastage, facilitates decision making and also establishes standards for controlling. Mrs. Deen had no plans or policies implemented for the suspension or termination of workers when pilfering occurred or when work wasn’t done in an effective or efficient manner, neither did she had a plan which would help guide her with the best ways to structure, organize and control the company so the goals can be met effectively. Organizing Organizing is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. The structure in which Mrs. Deen’s company was organized caused problems with the way the work was being carried out because the workers routes were changed on a daily basis it allowed them not to be as productive as they should and it also allowed pilfering to occur. How the staff were supervise caused many problems within the company also, because the supervisors rotated on a weekly basis between supervising the......

Words: 998 - Pages: 4


...approach and intent will allow the re-examination of the assumptions that resulted in the current process. Kaizen Definition KAIZEN is a Commonsense Approach to Low Cost Management. It focuses on MUDA elimination What is MUDA? Muda means any wasteful activity or any obstruction to smooth flow of an activity Activity = Work + Muda Expenditure = Cost + waste That is, for each activity there is expenditure and every work there is a cost associated. Any expenditure on the Muda is a waste! Therefore, Less Muda = More happy clients (as it impacts on quality, cost and delivery of products and services). What is Gemba? Gemba - Real place - (in our context Work Place) Gembutsu - tangible objects found at the Gemba Gemba is where Value Is Added. (The Managers cabin is not a Gemba !) What is Gemba Kaizen®? A process of Continuously • Identifying • Reducing • Eliminating Muda from our Gemba Some typical misconceptions on Kaizen • Kaizen is for workers; It is not for managers • Kaizen is SMALL improvements only • Kaizen is only a sort of implemented-suggestion scheme • Any implemented improvement is Kaizen When does it become KAIZEN? • large improvements are made • small time and small money is used • bottleneck problem is attacked • process observation is used • KAIZEN paradigms are deployed • management participation exists Gemba Kaizen® also Focuses on Mura and Muri What is Mura? Mura = Inconsistencies in the system • Happens......

Words: 431 - Pages: 2

Kaizen - the Philosophy of Continual Progress

...Kaizen The philosophy of continual progress By – XXXX Course - Quality Assurance Instructor – XXXX Due – Nov 30 Kaizen essay Introduction to Kaizen The word kaizen is the combination of two Japanese words. The word ‘Kai’ meaning ‘to do’ or ‘change’ and the word ‘Zen’ meaning ‘well’ This way of thinking is not only used in the field of manufacturing, engineering and business management but also in everyday life in Japan. This philosophy promotes gradual and continual progress and an increase in self-worth and total involvement in everything you do. The word Kaizen (To make better or continuous improvement) can easily be misspelled as Kaizan (To cook the books or alter or fake a document). Most professionals in the field could benefit with a careful study of the differences. Kaizen is a process that when applied daily eliminates overly hard work (Muri) and humanizes the workplace. The kaizen methodology basically involves making changes and monitoring the results, then adjusting. It also encourages employees to experiment on how to eliminate waste in the business process to increase productivity. Employees at all levels of an organization are expected to participate in ‘Kaizen’. From the CEO all the way down to the janitorial staff. The kaizen philosophy can be implemented by the individual but can also be applied as a group system. At Toyota, kaizen is generally implemented within workstations and is focused on improving the work environment and productivity...

Words: 1175 - Pages: 5


...Kaizen: A Good Change Tara C Bigbie Devry University Total Quality Management Dr. Stephan Onu 11 August 2014 Abstract The Kaizen philosophy was established to expand industrial processes, and is an expansive part of the Deming Theory on Total Quality Management. The history of Kaizen dates back to post World War II and can be seen throughout global corporate cultures. Kaizen is not just a benefit to companies, but a way of thinking that provides solutions that lead to change from an individual’s perspective. Like all change, there are pros and cons to its implementation. This paper takes a deeper look at the definition of Kaizen and the benefits and downside of its theory. Kaizen: A Good Change Since World War II, Japan has been a leading force in the conception of managerial culture and process. With the introduction of total quality management (TQM) by W. Edwards Deming, the Japanese have created a process of continuous improvement that has been applied to manufacturing companies, service based corporations, and even the medical community. This process is known as Kaizen. Kaizen translated to English means “good change”, or improvement. The Japanese adopted Deming’s key principle to “improve continuously by increasing quality and productivity”, and defined it as their own. Today, Japanese manufactures have Kaizen down to an art form. Kaizen is integrated into daily operations and thought processes. It is not just a way of improving production, but also......

Words: 981 - Pages: 4

Fedex Attributes Success Topeople-First Philosophy

...FedEx Attributes Success to People-first Philosophy To provide the level of service and quality necessary to become, and to remain, the leader in the air express cargo transportation industry, Federal Express has developed a unique relationship with its employees, based on a people-first corporate philosophy. Founder and CEO Frederick Smith determined to make employees an integral part of the decision-making process, due to his belief that "when people are placed first they will provide the highest possible service, and profits will follow". Resulting from this principle is the FedEx corporate philosophy: People-Service-Profit. These three corporate goals form the basis for all business decisions. The people priority acknowledges the importance of employee satisfaction and empowerment to create an environment where employees feel secure enough to take risks and become innovative in pursuing quality, service and customer satisfaction. Service refers to the consistent and clearly stated service quality goal of 100% customer satisfaction, 100% of the time. A corporate profit should result, if the people and service goals have been met. There are many processes in place at Federal Express to ensure that P-S-P becomes a way of life for all employees. The following highlight of FedEx programs indicates the strength of the company's commitment to the people-first philosophy. • An annual employee satisfaction survey, which rates management's performance and forms a basis for...

Words: 1152 - Pages: 5

Case Study in: Philosophy and Psychology

...Philosophy and Psychology Case Study Case 7. HIT AND MISS MANUFACTURING: A Star is Born The head of HR department, Atty. Mila Bravo was directed by the company president to act as leader of a committee whose task is to revise and update the current compensation scheme of the company. The President designated the following as members of the committee: 1. the accountant 2. the executive secretary 3. an employee in one of the operating units 4. an officer of the labor union 5. the internal auditor 6. a representative from the public During the first meeting, the seven members were all present. The president made a briefing regarding the purpose of the group, the circumstances that lead to the formation of the group, and his expectations about the group’s output. The group proceeded to determine the various factors relevant to the determination of the rates of the various jobs. Most of the members of the committee, however, cannot devote the time required to finish the job within the time frame indicated by the committee’s effectiveness. The first two meetings were held without much fuss. Everybody was given the opportunity to air his or her views about the various matters forwarded for discussion. For one reason or another, the accountant failed to appear in the succeeding meetings. He never attempted to explain his position to the committee leader or to any member, but his body language indicated that he was too busy......

Words: 327 - Pages: 2


...White paper KAIZEN COSTING AND VALUE ANALYSIS content THIS DOCUMENT.......................................................................................................... 1 CUT THE PRICE OF YOUR COMPONENTS WHILE TURNING A PROFIT.......................... 1 A closer look at the complication............................................................................ 2 IN THE FOOTSTEPS OF QUALITY ASSURANCE TECHNOLOGY. .................................... 2 . KAIZEN COSTING: A DEFINITION............................................................................. 4 . A standard system:................................................................................................. 4 A Kaizen system:. ................................................................................................... 4 . KAIZEN ESTIMATES IN PRACTICE................................................................................. 5 CHOICE OF PERSPECTIVE............................................................................................. 6 VALUE ANALYSIS IS NECESSARY................................................................................... 8 DEVELOPING METHODS FOR COST RATIONALIZATION.............................................. 8 WHAT ARE THE BENEFITS OF KAIZEN COSTING?........................................................... 9 KAIZEN COSTING AND VALUE ANALYSIS KAIZEN COSTING AND VALUE ANALYSIS THIS DOCUMENT This White Paper describes the......

Words: 2078 - Pages: 9


...KAIZEN COSTING THE PERFORMANCE OF THE ORGANIZATIONS TABLE OF CONTENTS Page Table Of Contents 1 1.1 Introduction 2 1.2 The Concept Of Kaizen Costing 2 1.3 Kaizen And Management 4 1.4 Kaizen -The Three Pillars 5 1.4.1 Housekeeping 5 1.4.2 Waste (Muda ) Elimination 7 1.4.3 Standardization 10 1.6 Kaizen And Total Quality Management (Tqm) 13 1.7 Kaizen And Suggestion Systems 14 1.8 Goals Of Kaizen Vs. Quality, Cost And Delivery 15 1.9 Common Disconnects/Roadblocks In Kaizen Implementation 16 1.10 Advantages Of Kaizen Costing 17 1.11 Disadvantages Of Kaizen Costing 18 1.12 Conclusion 19 References 19 1.1 Introduction Kaizen means improvement, continuous improvement involving everyone in the organization from top management, to managers then to supervisors, and to workers. In Japan, the concept of Kaizen is so deeply engrained in the minds of both managers and workers that they often do not even realize they are thinking Kaizen as a customer-driven strategy for improvement. Kaizen is a Japanese philosophy for process improvement that can be traced to the meaning of the Japanese words ‘Kai’ and ‘Zen’, which translate roughly into ‘to break apart and investigate’ and ‘to improve upon the existing situation’. It is using common sense and is both a rigorous, scientific method using statistical quality control and an adaptive framework of organizational values and beliefs that keeps workers and management focused......

Words: 5643 - Pages: 23

Kaizen Research

... |Pg. No. | |1 |INTRODUCTION- HISTORY OF KAIZEN |1 | |2 |MAJOR KAIZEN CONCEPTS |3 | |3 |MAJOR KAIZEN SYSTEMS |6 | |4 |GEMBA |8 | |5 |THE FIVE GOLDEN RULES OF GEMBA MANAGEMENT |15 | |6 |MUDA |20 | |7 |KOBETSU KAIZEN |27 | |8 |CASE STUDY-EXCEL INDUSTRIES LIMITED (ROHA) |28 | The Pledge Alone We Are Weak, Together We Are Strong. We Shall Work Together As A Family, In Mutual Trust And Responsibilty. Progress Can Be Attained Only If We Are Ready To Change Ourselves. As The World Moves Forward We Must Keep In Step. The Only Thing Of Importance Is Reality At The Gemba Introduction KAIZEN Japanese term that means continuous improvement, taken......

Words: 9362 - Pages: 38